Ghana Allocates $429 Million for Gold Purchases, Central Bank Functions Returned to Budget

Ghana has allocated 50 billion cedis (approximately $429 million) to the Ghana Gold Board in the revised 2026 budget for purchasing gold from small-scale miners to increase foreign exchange reserves. This project was previously pre-financed by the Bank of Ghana but was transferred to the Ministry of Finance due to concerns from the IMF regarding its "quasi-fiscal" nature. After the Ghana Gold Board monopolized gold exports from small miners, Ghana's gold export revenue increased from $10.3 billion in 2024 to $21 billion in 2025, helping the government purchase gold with local currency and exchange it for foreign currency, which pushed foreign reserves up to $14.5 billion in February this year, with the cedi appreciating by about 41% in 2025. Inflation fell from 23.8% at the end of 2024 to 5.3% in June this year. To mitigate budget risks, the government has reduced capital expenditures from 57.5 billion cedis to 52.5 billion cedis.