The Bank of Ghana’s disclosure that it has provided US$10 billion in foreign exchange support to the economy since January 2025 marks a significant milestone in Ghana’s economic recovery.
This critical support, channelled to Independent Power Producers (IPPs), used to honour commitments to bondholders, facilitate dividend payments, and strengthen debt management, has played a central role in restoring stability, investor confidence, and predictability within the financial system.
Yet behind this major achievement stands one of Ghana’s newest but most consequential institutions: the Ghana Gold Board (GoldBod).
Established to reform and formalise the small-scale gold sector, GoldBod was designed to provide a transparent national gold-purchasing mechanism, eliminate value leakages, and channel Ghana’s gold resources toward national economic objectives.
Central to this mandate is its role in supplying gold and generating foreign exchange to support the Bank of Ghana’s reserve-building and market-intervention strategies.
In just one year of operations, GoldBod has become a critical contributor to the forex buffers that enabled the central bank to deliver the US$10 billion support announced this week.
Before GoldBod’s establishment, the gold ecosystem was fragmented and largely informal.
A significant volume of gold produced by the small-scale sector exited the country through unregulated channels, depriving Ghana of billions of dollars and limiting the nation’s ability to stabilise the cedi during periods of volatility.
With no structured mechanism to convert domestically mined gold into reserve assets, the Bank of Ghana was routinely left exposed when economic pressures mounted.
GoldBod’s entry has fundamentally transformed this landscape.
Through its disciplined purchasing programme, transparent pricing framework, and formalised engagement with miners and aggregators, GoldBod has created a predictable and accountable supply of gold for national use.
These operations have been translated into valuable forex inflows that directly bolster the central bank’s capacity to intervene in the market.
This contribution is a key foundation behind the success the Bank of Ghana is celebrating today.
GoldBod has significantly increased the volume of gold delivered to the central bank, expanded national gold-buying mechanisms, and reduced smuggling and illicit outflows that previously drained Ghana of essential foreign exchange.
By keeping more of the country’s gold value within the domestic financial system, GoldBod has enabled stronger and timelier responses to forex pressures from IPPs, external creditors, and domestic markets.
The Ghana Gold Board remains committed to deepening this contribution. It is scaling up purchasing operations, strengthening partnerships across the mining value chain, and aligning its strategy with the Bank of Ghana’s medium-term reserve targets.
The objective is to ensure a consistent flow of gold and forex to support macroeconomic stability, protect the cedi, and enhance Ghana’s financial resilience.
As the Bank of Ghana marks this milestone, GoldBod stands proudly as a strategic partner whose mandate and performance have become integral to Ghana’s renewed economic confidence.
Together, the two institutions are demonstrating that Ghana can manage its natural resources efficiently, transparently, and sustainably to secure the stability and prosperity its people deserve.
Source: myxyzonline.com
