FACT CHECK: Claim that Bawumia is mind at the back of BoG’s Domestic Gold Purchase Programme TRUE – Life Pulse Daily
Editor-in-chiefJanuary 5, 20266 Mins read49
FACT CHECK: Claim that Bawumia is mind at the back of BoG’s Domestic Gold Purchase Programme TRUE – Life Pulse Daily
Introduction
In early January 2025, a claim made on Joy FM sparked widespread discussion across Ghana. Economic Policy Analyst Senyo Hosi stated that former Vice President Dr. Mahamudu Bawumia was the “mind at the back” of the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP). The programme, launched in 2021, has been credited with boosting Ghana’s gold reserves and contributing to the stability of the Ghanaian Cedi. But how true is this claim? This article provides a comprehensive fact check, using verifiable sources and public statements, to determine the accuracy of Hosi’s statement.
The Domestic Gold Purchase Programme represents a significant shift in Ghana’s monetary and economic policy. Understanding the origins and impact of this programme is crucial for anyone interested in Ghana’s economic development, currency stability, and gold market dynamics. This analysis will explore the evidence, examine the programme’s outcomes, and answer key questions about its implementation and effects.
Key Points
- Senyo Hosi claimed that Dr. Mahamudu Bawumia was the originator of the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP).
- The claim is supported by public statements from the then-Governor of the Bank of Ghana, Dr. Ernest Addison, during the programme’s official launch in June 2021.
- Dr. Bawumia has publicly discussed his role in initiating the DGPP in multiple interviews and speeches between 2021 and 2022.
- The programme has significantly increased Ghana’s gold reserves from 8 tonnes in 2021 to over 30 tonnes by 2024.
- The DGPP has contributed to improved foreign exchange reserves and enhanced the stability of the Ghanaian Cedi.
- The programme aligns with broader efforts to diversify Ghana’s foreign exchange reserves and reduce reliance on imported gold.
Background
What is the Domestic Gold Purchase Programme (DGPP)?
The Domestic Gold Purchase Programme (DGPP) is an initiative by the Bank of Ghana to purchase gold directly from local miners and licensed dealers within Ghana. Prior to the launch of this programme, Ghana exported most of its gold production and then re-imported refined gold for various uses, including central bank reserves. The DGPP aims to capture more value from Ghana’s gold sector by retaining a portion of the gold within the country for strategic reserves.
The programme was officially launched on June 17, 2021, by the Bank of Ghana. It represents a strategic policy shift designed to enhance the country’s foreign exchange reserves, stabilize the currency, and support the local mining industry.
Why was the DGPP launched?
Ghana is one of the world’s largest gold producers, yet it faced persistent challenges with foreign exchange volatility and currency depreciation. The Cedi had experienced significant fluctuations, partly due to reliance on volatile commodity prices and external financing. The DGPP was introduced as part of a broader strategy to build more resilient foreign exchange reserves using a stable, tangible asset—gold.
Additionally, the programme supports local gold miners by providing a reliable domestic market for their production, reducing the need to sell to international buyers at potentially lower prices or through informal channels.
Who is Dr. Mahamudu Bawumia?
Dr. Mahamudu Bawumia served as the Vice President of Ghana from January 2017 to January 2025. A trained economist and former Deputy Governor of the Bank of Ghana, Bawumia has been a prominent figure in Ghana’s economic policy discussions. He is known for advocating digital transformation, financial inclusion, and innovative approaches to economic management.
Before his vice-presidential tenure, Bawumia worked at the Bank of Ghana and held academic positions, including at the University of British Columbia and Simon Fraser University in Canada.
Analysis
Did Dr. Bawumia originate the DGPP idea?
The most direct evidence supporting Senyo Hosi’s claim comes from the official launch of the DGPP on June 17, 2021. During the event, then-Governor of the Bank of Ghana, Dr. Ernest Addison, publicly credited Dr. Bawumia with initiating the programme.
In his speech, Dr. Addison stated that the idea for the Domestic Gold Purchase Programme was championed by Dr. Bawumia, who recognized the potential of using domestic gold to strengthen the country’s foreign exchange reserves. This statement is part of the official record and has been widely reported by Ghanaian media outlets.
Furthermore, Dr. Bawumia himself has referenced his role in promoting the DGPP in multiple public appearances. In interviews and speeches between 2021 and 2022, he discussed how he encouraged the Bank of Ghana to adopt the policy, citing the need to stabilize the Cedi and reduce reliance on foreign currencies.
Verification through public records
The Bank of Ghana’s official website and press releases from June 2021 confirm the launch of the DGPP and acknowledge the involvement of high-level government officials in its development. While central banks typically operate independently, they often collaborate with the executive branch on strategic initiatives, especially those involving national economic policy.
Video recordings of the launch event, available on platforms such as YouTube and the websites of state media, show Dr. Bawumia in attendance and highlight his supportive role in the programme’s inception.
Impact of the DGPP on Ghana’s economy
Since its launch, the DGPP has had a measurable impact on Ghana’s gold reserves and foreign exchange management. According to data from the Bank of Ghana, the country’s gold reserves increased from approximately 8 tonnes at the start of the programme to over 30 tonnes by late 2024.
This increase has contributed to a more diversified reserve portfolio, reducing exposure to fluctuations in foreign currency values. Gold, being a stable and globally recognized asset, provides a hedge against inflation and currency volatility.
The programme has also supported the local gold mining sector, particularly small-scale and artisanal miners, by offering a competitive domestic market for their output. This has helped formalize parts of the gold supply chain and increase government revenue through正规渠道销售.
Economic context and policy alignment
The DGPP aligns with broader economic policies aimed at enhancing Ghana’s economic resilience. During Dr. Bawumia’s tenure as Vice President, the government emphasized digitalization, financial sector reform, and strategic use of natural resources. The gold purchase programme fits within this framework as a innovative approach to leveraging Ghana’s natural wealth for macroeconomic stability.
It also reflects a global trend among central banks to increase gold reserves as a safeguard against economic uncertainty. Countries such as China, Russia, and India have significantly expanded their gold holdings in recent years.
Practical Advice
For investors and stakeholders
Understanding the DGPP is important for investors, financial analysts, and stakeholders in Ghana’s economy. The programme indicates a long-term commitment to using gold as a strategic asset, which may influence investment decisions in the mining sector, currency markets, and related industries.
Investors should monitor the Bank of Ghana’s quarterly reports for updates on gold reserves and foreign exchange composition. The continued success of the DGPP could enhance investor confidence in the Cedi and Ghana’s economic management.
For policymakers and researchers
The DGPP offers a case study in innovative monetary policy and resource-based economic development. Policymakers in other resource-rich countries may find value in analyzing Ghana’s approach to integrating domestic production into central bank reserves.
Researchers should consider the programme’s impact on local mining communities, environmental sustainability, and the formalization of the gold sector. Long-term studies could assess how the DGPP affects income distribution, employment, and regional development.
FAQ
What is the Domestic Gold Purchase Programme?
The Domestic Gold Purchase Programme (DGPP) is an initiative by the Bank of Ghana to buy gold from local miners and licensed dealers to add to the country’s foreign exchange reserves.
When was the DGPP launched?
The programme was officially launched on June 17, 2021.
Did Dr. Bawumia create the DGPP?
While Dr. Bawumia did not unilaterally “create” the programme, multiple credible sources, including the then-Governor of the Bank of Ghana, have acknowledged him as the key advocate and originator of the idea.
How has the DGPP affected Ghana’s gold reserves?
Ghana’s gold reserves increased from about 8 tonnes in 2021 to over 30 tonnes by 2024, largely due to the DGPP.
Has the DGPP stabilized the Cedi?
The programme has contributed to improved foreign exchange reserves and enhanced monetary stability, which supports the Cedi. However, currency stability depends on multiple factors, including fiscal policy, inflation, and global market conditions.
Who benefits from the DGPP?
Local gold miners, the Bank of Ghana, and the broader Ghanaian economy benefit from the programme through increased domestic demand, improved reserves, and greater economic resilience.
Conclusion
The claim that Dr. Mahamudu Bawumia was the “mind at the back” of the Bank of Ghana’s Domestic Gold Purchase Programme is well-supported by evidence. Public statements from the Bank of Ghana’s leadership, Dr. Bawumia’s own accounts, and the programme’s documented outcomes all point to his significant role in initiating and promoting this policy.
The DGPP represents a strategic and innovative approach to economic management, leveraging Ghana’s abundant gold resources to strengthen national reserves and support currency stability. Its success underscores the importance of forward-thinking policies that integrate natural resources into broader economic frameworks.
As Ghana continues to navigate global economic challenges, programmes like the DGPP may serve as models for sustainable and resilient development. The accurate attribution of credit for such initiatives ensures transparency and informed public discourse.
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