Deputy Ranking Member of Parliament's Finance Committee, Dr Gideon Boako, has raised concerns over claims that Ghana Gold Board's (GoldBod) recent $1.1 billion foreign exchange generation represents an addition to the Bank of Ghana's (BoG) reserves. He argues that the amount could largely constitute repayment of an existing obligation to the central bank. According to Dr Boako, GoldBod owed the BoG about GH¢3.7 billion in 2025 for gold supplies it failed to deliver.
Dr Boako stated that the $1.8 billion generated by GoldBod, from which about $1.1 billion is being described as support to reserves, requires proper explanation. He said the $1.1 billion should be seen as a repayment of what GoldBod already owed BoG, rather than an addition to reserves. This has sparked debate over the true nature of the arrangement between GoldBod and BoG.
The Tano North MP further questioned the source of funds used by GoldBod to purchase gold that generated the foreign exchange. Under the current gold purchasing arrangement, gold bought with funds from commercial banks would have to be returned to those banks through foreign exchange sales. Dr Boako asked if GoldBod's gold purchases were financed by the Ministry of Finance or through GoldBod's own debt instruments.
If the gold purchases were financed by the Ministry of Finance or GoldBod's own debt instruments, the resulting dollar proceeds could potentially support reserve accumulation. However, if commercial banks or off-takers funded the purchases, the dollar proceeds would have to be returned to them. Dr Boako emphasized that the books would ultimately have to be examined to establish the true nature of the arrangement.
GoldBod generated $1.87 billion in September, exceeding its monthly target. The organization plans to provide $1 billion in support to banks. BoG Governor appointed Second Deputy Governor Matilda Asante-Asiedu as a representative on GoldBod's board. The development has significant implications for Ghana's economy, particularly in terms of foreign exchange and reserve accumulation.
The debate over GoldBod's $1.1 billion support to BoG comes at a time when Ghana's economy is facing challenges. The country's credit ratings have been affirmed, but the situation warrants close monitoring. Experts say that understanding the true nature of the arrangement between GoldBod and BoG is crucial for making informed decisions about the economy.
Dr Boako's concerns have sparked a renewed focus on the gold purchasing arrangement and its impact on Ghana's reserves. The examination of GoldBod's books is expected to shed more light on the arrangement and provide clarity on the $1.1 billion support to BoG. Key stakeholders, including the Ministry of Finance, BoG, and GoldBod, are yet to comment on the matter.
Key points
- Dr Gideon Boako questions claim that GoldBod's $1.1bn support to BoG is an addition to reserves
- GoldBod generated $1.87 billion in September, exceeding its monthly target
- The true nature of the arrangement between GoldBod and BoG requires proper explanation
