Africa’s biggest gold producer empowers new Gold Board with $430 million to lock in domestic bullion reserves

The 5 billion cedi allocation will finance GoldBod’s purchases from domestic producers, replacing the central bank as the primary financier of the programme.

While officials expect the move to expand Ghana’s gold reserves and strengthen external buffers, it also introduces new fiscal obligations at a time when the country remains under an economic reform programme backed by the International Monetary Fund.

Analysts say the shift could expose public finances to greater risk if gold prices decline sharply or if the programme requires additional government borrowing. Unlike the central bank, which could absorb such operations within its balance sheet, state-funded purchases could have a more direct impact on Ghana’s fiscal position.

The government nonetheless argues that the benefits outweigh the risks.

By centralising gold purchases under GoldBod and increasing domestic acquisitions, Ghana hopes to further strengthen its foreign exchange reserves, stabilise the cedi, improve investor confidence and retain a larger share of the value generated by its gold industry.

Source: africabusinessinsider