Goldbod shouldn’t be credited for Ghana’s macroeconomic stability – Bokpin

Ghana's economist and professor, Godfred Alufar Bokpin, has cautioned against attributing the country's recent macroeconomic stability to the Ghana Gold Board (GoldBod). While acknowledging GoldBod's role in bringing gold-related foreign exchange into the formal economy, Prof. Bokpin emphasizes that broader gains result from fiscal and monetary policies.

He points out GoldBod's success in reducing gold smuggling and retaining foreign exchange within Ghana as a commendable achievement, crediting the organization for the narrowing of the gap since its introduction. However, Prof. Bokpin highlights the programme's costs, including significant financial losses and the abolition of the 1.5% withholding tax on artisanal and small-scale gold production.

He argues that the fiscal implications of the domestic gold purchase programme, costing the state more than $1.7 billion, should be considered alongside the benefits. Prof. Bokpin argues that macroeconomic stability is primarily the responsibility of fiscal and monetary authorities, such as the Bank of Ghana, rather than GoldBod.

He acknowledges the gains of the programme but insists that substantial losses must not be overlooked. The government, along with GoldBod and the Bank of Ghana, recognizes the unsustainable nature of these losses and is pursuing an exit plan to reduce them.