Gideon Boako questions resilience of Ghana’s new gold-to-forex model

Tano North Member of Parliament and Deputy Ranking Member of Parliament’s Finance Committee, Dr Gideon Boako, has raised questions about the resilience of Ghana’s new gold-to-foreign-exchange model amid renewed pressure on the cedi and fluctuations in the country’s international reserves.

In a write-up issued on Sunday, September 27, Dr Boako examined Ghana’s changing external-sector architecture following the transfer of domestic gold-purchasing responsibilities from the Bank of Ghana to the Ghana Gold Board (GoldBod) from July 2026.

Under the new arrangement, GoldBod increasingly relies on commercial banks and private off-takers to finance gold purchases, with proceeds from gold exports expected to generate foreign exchange for the market and reserves.

According to Dr Boako, the new model has already demonstrated significant capacity to mobilise foreign exchange.

GoldBod reported generating US$1.315 billion in foreign exchange in August, its first full month under the new financing structure, with about US$668 million sold directly to commercial banks and approximately US$647 million made available to the Bank of Ghana for reserve accumulation.

He cautioned, however, that one strong month was not enough to establish whether the model could withstand less favourable market conditions.

“The real question is whether the model can mobilise financing consistently and at scale when market conditions become more difficult,” Dr Boako stated in the write-up.

He identified potential risks including tighter commercial-bank liquidity, reduced financing from private off-takers, weaker gold production, disruptions to export shipments and rising financing costs.

The concerns come against the backdrop of pressure on Ghana’s external position.

Dr Boako noted that the cedi had depreciated by 9.5 percent in real bilateral terms against the US dollar on a year-to-date basis by September, while gross international reserves had also become more volatile.

He said the key test would be whether GoldBod could continue supplying sufficient foreign exchange to commercial banks and the Bank of Ghana without recreating the quasi-fiscal risks that the July reform was intended to eliminate.