Experts have commended the Ghana Gold Board (GoldBod) for taking over operational gold trading, a move that has significantly reduced risks for the Bank of Ghana (BoG) and strengthened the central bank’s credibility and independence.
Before 2025, the BoG was heavily involved in gold markets, purchasing both artisanal and large-scale output under programmes such as the Domestic Gold Purchase Programme.
While these interventions temporarily supported foreign reserves, experts note that they exposed the central bank to substantial price, timing, and operational risks.
Transactions involving artisanal and small-scale mining (ASM) doré were particularly vulnerable, with settlement delays and market volatility compounding potential losses.
Persistent trading losses, analysts observed, threatened BoG’s balance sheet integrity and posed long-term risks to the effectiveness of monetary policy.
By assuming responsibility for gold purchasing, assaying, and export, GoldBod has removed the operational burden from the central bank.
The BoG now serves as principal in off-take agreements, while GoldBod charges fees for its services.
Trading profits or losses are decoupled from the BoG’s balance sheet, insulating the central bank from commodity market volatility.
Experts highlight that this separation is already generating significant macroeconomic benefits.
By formalising ASM gold flows, GoldBod ensures that more foreign exchange enters the domestic economy, strengthening Ghana’s external reserves and reducing the country’s reliance on costly external borrowing.
“Economic welfare gains from formalisation can outweigh reported accounting losses, demonstrating that policy effectiveness should not be measured solely by central bank profits or losses,” the report notes.
The reform has also improved accountability in the gold–foreign exchange nexus. Analysts applaud GoldBod for converting previously illicit gold flows into formal channels, stabilising the cedi, and supporting broader macroeconomic stability.
Observers emphasise that the continued success of this approach will depend on governance transparency, consistent enforcement, and effective pricing mechanisms.
With these measures in place, experts say Ghana stands to benefit from a long-term reduction in quasi-fiscal pressures, stronger monetary policy credibility, and a more resilient financial system.
Concerns over a reported US$214 million trading loss by the Bank of Ghana under gold purchase programmes prompted independent academic research into the economic impact of the Ghana Gold Board (GoldBod).
In response, a team of University of Ghana economists, Prof. Festus Ebo Turkson, Prof. Agyapomaa Gyeke-Dako, and Peter Junior Dotse undertook a detailed study to evaluate GoldBod’s contribution to Ghana’s macroeconomic stability.
Their findings, released in a technical report, highlight that by formalising artisanal and small-scale mining (ASM) gold, GoldBod not only strengthened foreign exchange reserves and reduced smuggling but also delivered benefits far exceeding the BoG’s reported accounting costs.
