Bell Of Armageddon! …Boako Warns Against Over-Reliance On Gold To Fix FX
Ghana’s growing dependence on gold to generate foreign exchange and build international reserves faces a sustainability test as the new Ghana Gold Board (GoldBod) financing model comes under pressure to maintain consistent FX flows, Dr Gideon Boako, Member of Parliament for Tano North, has warned. Dr Boako said the country’s ability to accumulate reserves should […] The post Bell Of Armageddon!…
Dr Gideon Boako, Member of Parliament for Tano North, has raised concerns regarding Ghana's over-reliance on gold to generate foreign exchange and build international reserves. The new Ghana Gold Board (GoldBod) financing model, which took over domestic gold purchases from the Bank of Ghana (BoG), has demonstrated significant capacity to generate foreign exchange under the new financing structure.
In August, GoldBod reported generating US$1.315 billion in foreign exchange, with US$668.21 million sold directly to commercial banks and US$646.59 million available to the BoG for reserve accumulation. However, Boako warns that strong initial performance should not be mistaken for evidence that the model has been fully tested. He cautions that the real test will come if financing conditions tighten, gold production declines, gold prices weaken, or private off-takers reduce their financing.
Boako argues that Ghana must demonstrate its capacity to generate foreign exchange when economic conditions become difficult, not just accumulate reserves.
Brief written by urgent.news from The Chronicle Ghana's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
