The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has announced that the Central Bank has officially ended the prefinancing of the Ghana Gold Board’s (GoldBod) Gold Purchase Programme, describing the move as a significant policy shift that will influence liquidity management and feature prominently in deliberations at the 131st Monetary Policy Committee (MPC) meeting.
Opening the MPC session in Accra, Dr. Asiama disclosed that the decision took effect on 1 July 2026, bringing to an end the Bank’s auction-based financing arrangement for GoldBod’s domestic gold purchases.
According to him, the move represents “an important change in the sources of domestic liquidity” and will be carefully assessed alongside other recent policy measures to determine their impact on monetary policy transmission and broader macroeconomic conditions.
He explained that the Committee would evaluate how the withdrawal of the liquidity injection associated with GoldBod’s prefinancing has affected financial markets at a time when private sector credit is expanding rapidly.
“The cessation of the Bank’s prefinancing for GoldBod purchases removes one source of liquidity injection,” he stated, adding that the Committee must determine whether the current balance between stabilisation measures and structural reforms remains appropriate.
Dr. Asiama noted that the decision follows the MPC’s previous meeting, where the Committee maintained the Monetary Policy Rate at 14% while replacing the dynamic cash reserve ratio with a uniform 20% reserve requirement to be held in domestic currency.
He said those measures were adopted to strengthen the operational framework for monetary policy rather than immediately adjust interest rates amid heightened global uncertainty.
The Governor indicated that the effectiveness of those reforms would also come under review during the current MPC meeting, particularly whether short-term interbank market rates have become better aligned with the policy rate.
Dr. Asiama stressed that disciplined liquidity management remains central to the Bank’s inflation-targeting framework and long-term policy credibility.
He said the Committee’s task this week extends beyond analysing recent economic data to determining whether the current monetary policy framework remains fit for prevailing domestic and global economic conditions.
The outcome of the meeting is expected to influence the Bank’s next monetary policy decision and provide fresh guidance on Ghana’s inflation outlook, credit conditions and overall macroeconomic stability.
