President John Dramani Mahama believes the current high gold prices present a unique opportunity to build a buoyant economy that will shield the country from future financial shocks.
Describing it as an “economic war chest,” President Mahama explained that it would improve living standards and create lasting prosperity for future generations.
The Ghana Gold Board (GoldBod), since its establishment, has been positioned to lead the accumulation of foreign exchange reserves by purchasing gold from artisanal small-scale miners and some large-scale mining firms.
To start, it plans to purchase 127 tonnes of gold annually from licensed miners across the country.
In his State of the Nation’s address in Parliament, President Mahama said: “Mr. Speaker, it is forecast that gold prices will remain high over the next three years, and so this presents us with the unique opportunity to build an economic war chest to withstand any global shocks, secure our macroeconomic stability, improve the standard of living of our citizens, and build lasting prosperity for future generations.”
The government aims to bolster international reserves, stabilize the currency, and provide access to substantial foreign exchange without increasing public debt.
With gold prices projected to remain elevated, Ghana expects to enhance its economic stability and secure long-term prosperity.
The President, in his address to Parliament, credited the Ghana Gold Board as the key driver behind Ghana’s significant boost in international reserves, now standing at $13.8 billion, covering 5.7 months of imports.
According to him, GoldBod’s establishment has led to a surge in gold exports, with 103 tonnes exported in 10 months, generating over $10 billion in forex inflows.
This move aims to strengthen Ghana’s economic stability and assert sovereignty over its natural resources.
Addressing Parliament in his State of the Nation’s address, President Mahama noted that formalizing gold exports has reduced smuggling and increased recorded exports in the artisanal small-scale mining sector, with exports expected to reach 66.3 tonnes by the end of 2024.
Finance Minister Dr. Cassiel Ato Forson, last week, announced that the Ghana Gold Board would lead the country’s first-ever comprehensive national policy aimed at building sustainable macroeconomic stability and robust external reserves.
The policy, the Ghana Accelerated National Reserve Accumulation Policy (GANARAP), will leverage gold to strengthen Ghana’s foreign exchange reserves and promote economic stability.
Source: myxyzonline.com
