Ernest Addison, the governor of Ghana’s Central Bank, announced on Tuesday that the country has begun a bulk purchase program to buy gold locally in an effort to raise the gold component of its reserves. This move was made in an effort to strengthen the cedi currency without increasing inflationary pressures.
“We have initiated a domestic program for bulk purchases, in which we will acquire gold from local suppliers in an effort to increase the proportion of gold in our total reserves. Here is where most of the attention is placed on the money “Addison stated this when speaking at a conference.
In spite of efforts to rein in price increases and jumpstart the economy, the nation that produces gold, oil, and cocoa saw consumer inflation hit a record high of about 24 percent in April. This broke the previous record by 18 years.
According to the statistics collected by the media, the devaluation of the Ghana cedi versus the dollar was the most severe of any currency against the dollar during the period from January to March. Since then, its value has, for the most part, leveled out, although seeing yet another decline over the course of the last week.