State-run gold body has boosted Ghana’s foreign reserves, central bank chief says

Ghana’s central bank has rebuilt its foreign reserves to the equivalent of four and a half months of import cover after they were nearly depleted during the 2022 economic crisis, Governor Johnson Asiama said on Thursday, crediting the state-run Ghana Gold Board (GoldBod) with helping to plug foreign-exchange leakages.

GoldBod, established in March, has generated about $8 billion by centralizing the purchase and export of gold and ensuring that foreign currency earnings return to Ghana, Mr. Asiama said at an event on the sidelines of the International Monetary Fund and World Bank Annual Meetings in Washington.

“It’s like a revolving kind of fund that we operate. And I think so far it’s been complementary, helping us to build our reserves,” he said.

Mr. Asiama added that the Bank of Ghana continues to receive bullion directly from large-scale mining companies under existing agreements, further strengthening the country’s gold holdings.

The development marks a significant turnaround from the previous year, when gold exports were largely dominated by private traders and a substantial portion of the proceeds did not enter Ghana’s domestic banking system.

The Governor also disclosed that Ghana plans to regulate cryptocurrencies by the end of the year under a new bill drafted with support from the International Monetary Fund.

The legislation, which is currently before Parliament, is expected to give the Bank of Ghana the authority to license and monitor virtual asset activities, following concerns that remittance flows were being diverted through stablecoins and informal cryptocurrency channels.

Mr. Asiama further noted that legislative reforms would strengthen the independence of the central bank and help repair its balance sheet following Ghana’s domestic debt restructuring.

He added that efforts are also underway to re-list more banks and revive Ghana’s capital markets as part of broader measures to strengthen the country’s financial sector.