Audio By Carbonatix
The establishment of the Ghana Gold Board (GoldBod) has helped separate operational trading risks from monetary policy responsibilities, a move experts say is vital for the credibility of the Bank of Ghana (BoG).
Before 2025, the BoG had increasingly acted as a direct participant in gold markets, purchasing artisanal and large-scale output under schemes like the Domestic Gold Purchase Programme.
While these interventions temporarily bolstered reserves, they exposed the central bank to substantial price, timing, and operational risks.
“Persistent trading losses threatened the independence and balance sheet integrity of the central bank, creating potential long-term risks for monetary policy effectiveness.”
These losses were particularly evident in ASM doré transactions, where settlement delays and price volatility compounded operational risks.
GoldBod now functions as the operational arm for gold purchasing, assaying, and export, while the BoG assumes the role of principal in off-take agreements.
The board charges fees for its services, while trading profits or losses are decoupled from the central bank’s balance sheet.
The new framework has also strengthened accountability in the gold–FX nexus. Analysts highlight that the Board’s role in formalising ASM gold flows ensures that more FX enters the domestic economy, while the central bank is shielded from operational losses.
“Economic welfare gains from formalisation can outweigh reported accounting losses, demonstrating that policy effectiveness should not be measured solely by central bank profits or losses,” excerpt of the report stated.
As Ghana transitions fully to GoldBod-led operations, full risk transfer and governance transparency remain critical.
Observers note that the sustainability of the reform will depend on consistent enforcement, proper pricing mechanisms, and clear fiscal recognition of any policy-driven subsidies.
With these measures in place, Ghana could see a long-term reduction in quasi-fiscal pressures and improved monetary policy credibility.
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