The Bank of Ghana (BoG) has acknowledged the pivotal role gold plays as a strategic reserve asset and its critical influence on economic growth.
However, the Central Bank emphasises the need for responsible gold exploitation to ensure maximum benefits are realized without inflicting significant harm on the environment.
In line with this, the Bank has initiated its Responsible Sourcing Programme, aimed at ensuring the ethical procurement of the precious metal.
This Responsible Gold Sourcing Policy Framework outlines the Domestic Gold Purchase Programme (DGPP), detailing its processes, Know Your Customer (KYC) and due diligence requirements, supply chain transparency, and comprehensive risk analysis.
The DGPP operates in two key models: Gold for Reserves and Gold for Oil. Through stringent KYC and due diligence protocols, the Bank of Ghana aims to guarantee that its gold acquisitions do not contribute to human rights violations, fuel conflict, or result in irreversible environmental damage while adhering to Ghana’s legal standards.
Under the Gold for Oil initiative, the government seeks to utilize domestically sourced gold to pay for imported oil products, establishing a direct barter arrangement with gold acquired by the Central Bank.
According to the G40 Programme Framework (dated February 3, 2023), the oil payment is structured in two pathways: direct barter or via foreign exchange earned from selling gold to brokers.
Through the barter system, suppliers willing to accept gold in exchange for petroleum products will receive an equivalent amount from the Bank of Ghana.
Alternatively, under the broker system, the Central Bank enters into gold supply agreements with brokers, selling gold in exchange for foreign currency to cover oil import costs.
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