The Ghana Gold Board (GoldBod) has stopped buying gold at forex bureau rates under the new Ghana Accelerated National Reserve Accumulation Programme (GANRAP). GoldBod will now purchase gold using the interbank exchange rate.
This policy change aims to significantly reduce losses and improve efficiency in Ghana's gold reserve accumulation efforts. The shift from forex bureau rates to interbank rates addresses the wide gap between these rates, which previously caused substantial financial strain. This change affects gold miners who sell to the state and is part of broader economic reforms.
This move fits into Ghana's larger economic strategy to build stronger national reserves and stabilize the cedi. Efficient gold purchasing directly contributes to strengthening the Bank of Ghana's balance sheet. It also supports efforts to formalize the artisanal and small-scale mining sector. Prior initiatives aimed to encourage miners to sell to the state, but at a high cost to GoldBod.
Sammy Gyamfi, the Chief Executive Officer of GoldBod, announced this shift. He stated that the previous system incurred significant financial losses. “We have now ended the Domestic Gold Purchasing Programme and introduced GANRAP, which is more efficient and cost-effective,” Mr. Gyamfi explained. He added that the gap between forex bureau and interbank rates accounted for about 90% of losses under the old system.
GoldBod officials consulted extensively with miners before implementing this new policy. These interactions clarified the economic impact of the previous, loss-making system. Miners demonstrated patriotism, understanding the necessity of the change for national economic stability. GoldBod also provides a bonus arrangement to miners when the gap between rates exceeds GHS 1. This cushions any difference in earnings for miners.
The reforms under GANRAP have already cut the gold purchasing programme's overall cost from about 16% to 7.25%. The government targets a further reduction to 5% next year, eventually aiming for 3%. These reductions highlight GoldBod's commitment to financial prudence and sustainability. Efficient reserve accumulation is crucial for a stronger, more resilient economy.
This policy change will likely influence currency markets and the Bank of Ghana's reserve management. Decision-makers and investors will closely watch the programme's actual cost reductions and market impact. The success of GANRAP could set a precedent for other commodity-purchasing schemes. This strengthens government collaboration with the mining industry.
GoldBod continues to formalize the artisanal and small-scale mining sector. Its mandate includes structured gold purchasing and responsible sourcing initiatives. These efforts aim to improve transparency and reduce smuggling. They also enhance value retention within Ghana's mining ecosystem.