Importers and Exporters Association of Ghana commends GoldBod, BoG for ensuring forex stability

The Importers and Exporters Association of Ghana has praised GoldBod and the Bank of Ghana for their efforts in maintaining stability in the foreign exchange market. According to the association, GoldBod's gold trading activities have helped make foreign exchange available for legitimate business transactions, contributing to relative stability in the market.

The Gold-for-Reserves programme, introduced to address Ghana's foreign exchange challenges, was defended by Dr. Mahamudu Bawumia, the New Patriotic Party's flagbearer. He described it as an unconventional solution necessitated by disruptions to global financial markets triggered by the Russia-Ukraine war, which affected Ghana's ability to raise foreign currency.

Ghana had historically relied on international capital markets to raise about $3 billion annually to support the economy, but the loss of access to those markets created severe foreign exchange shortages.

Dr. Bawumia also revealed that he had feared Ghana could suffer a Sri Lanka-style economic crisis due to severe foreign exchange shortages. He noted that the country's status as a major gold producer presented an opportunity to strengthen its reserves using a domestically produced resource. The programme aimed to accumulate foreign exchange reserves through gold trading, helping to alleviate pressure on the cedi.

Brief written by urgent.news from 3News, Adom Online, MyJoyOnline Ghana, Joy Business — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.