GoldBod programme contributed just 1.3% to reserves increase – Amin Adam

Dr Mohammed Amin Adam, Karaga MP and former Finance Minister, has challenged the notion that Ghana's gold purchase programme, GoldBod, played a substantial role in the recent surge of the country's foreign exchange reserves. According to Bank of Ghana data, gold contributed a mere US$60.9 million, or 1.3 percent, to the US$4.716 billion increase in reserves.

During a press conference on September 1, Dr Adam highlighted that Ghana's physical gold reserves had plummeted from 30.5 tonnes to 18.6 tonnes, marking a 39 percent decrease. He pointed out that this significant reduction was due to market price fluctuations rather than an increase in Ghana's gold holdings.

Dr Amin Adam argued that the bulk of the reserves' growth can be attributed to other sources such as remittances amounting to US$7.79 billion, cocoa earnings of US$3.86 billion, crude oil exports valued at US$2.62 billion, and foreign direct investment of US$2.61 billion. He further cited IMF figures indicating that foreign currency inflows associated with GoldBod totaled US$10.9 billion, with the Bank of Ghana selling US$10.6 billion back into the local market.

Dr Adam emphasized that this intervention functioned more as a foreign exchange maneuver than a reserve-building initiative.

While acknowledging that foreign exchange intervention could be a valid policy move, Dr Amin Adam contended that it diverged from the objectives outlined in the legislation that established GoldBod. He called for enhanced transparency regarding the programme's declared goals, expenses, and its true impact on Ghana's reserves.