Why NPP’s gold purchase programme may not be effective [Video]

According to a Senior Research Associate at IMANI Africa, Dennis Asare, there are various issues with the programme that will affect its effectiveness.

Speaking at IMANI’s “2024 IMANIfesto,” he questioned the policy’s efficacy, explaining that the initial implementation only reduced the exchange rate by 3%.

This initiative was proposed by the New Patriotic Party (NPP) in their manifesto. It involves the Bank of Ghana purchasing gold from the local market, particularly from small-scale mining operations, to strengthen national reserves and support the cedi.

He said: “They want to continue the Gold Purchase Programme to shore up our country’s reserves, which we see that other countries are doing the same thing. What the Bank of Ghana does is that they buy about 20% of gold from the market.

“Now they also want to look at sustainable small-scale mining, buy a lot of that …