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!…
Ghana is facing a test of its ability to generate foreign exchange through its growing reliance on gold exports, according to Dr Gideon Boako, an MP for Tano North. In his analytical article, Boako warned that while the country has shown potential in generating US$1.315 billion in foreign exchange under the new financing model, it is crucial to assess whether Ghana can maintain reliable dollar generation during economic downturns.
The restructuring of the Domestic Gold Purchase Programme (DGPP) from the Bank of Ghana to the Ghana Gold Board (GoldBod) has placed GoldBod at the center of Ghana's gold-to-FX system, with increased dependence on commercial banks and private off-takers for financing. Boako cautioned that strong initial performance should not be mistaken for the model's full testing, as future challenges such as tightened financing conditions, declining gold production, weakened gold prices, or reduced private off-takers could impact the system.
While acknowledging the benefits of reserve accumulation, Boako emphasized the need for Ghana to build a diversified economy capable of generating foreign exchange from multiple sources, including manufacturing, agriculture, tourism, digital services, traditional exports, and remittances.
Written by urgent.news from The Chronicle Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
