BoG Governor Backs GoldBod’s Freedom to Sell Forex Under New Framework

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has affirmed that the Ghana Gold Board (GoldBod) should be free to sell foreign exchange generated from its gold exports to commercial banks or the central bank under a new foreign exchange sales framework being developed.

Speaking at the 132^nd Monetary Policy Committee press briefing, Dr. Asiama explained that GoldBod, as a state-owned enterprise (SOE) that earns foreign exchange through gold exports, should be allowed to determine where to sell its foreign exchange, particularly when it raises funding from commercial banks to finance its gold purchases.

“GoldBod is free to sell. They are not getting into the buying aspect of the market; they are operating only in the selling part of the market, depending on where they raise their funding,” he said.

The Governor stressed that GoldBod’s sale of foreign exchange should not be confused with forex trading, distinguishing the Board’s activities from buying and selling currencies in the foreign exchange market.

He explained that the funding arrangement for GoldBod’s gold purchases would be an important consideration under the new regime. Where commercial banks provide the funding, GoldBod should be free to sell the resulting foreign exchange to those banks.

However, he noted that a different arrangement could apply if the central bank or government financed the purchases.

Despite the proposed flexibility, Dr. Asiama said GoldBod’s role in strengthening Ghana’s international reserves would remain important, particularly when the country faces pressure on its reserves.

“Whenever our reserves are challenged, GoldBod will be ready to support us. If it means sending everything to us to build reserves, we believe GoldBod will be ready to support the government,” he stated.

The Governor said the new framework would be communicated after the completion of a policy document currently being prepared.

The proposed regime is expected to clarify how GoldBod sells foreign exchange generated from gold exports, while preserving cooperation with the Bank of Ghana on reserve accumulation.