Banking and Finance | Mining

GoldBod resumes significant gold shipments, supporting reserves – BoG

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Governor of the Bank of Ghana (BoG), Dr. Johnson  Asiama, says the Ghana Gold Board (GoldBod) has resumed significant gold shipments, a development he says is supporting the country’s foreign exchange reserve accumulation.

Speaking at the 132nd MPC press briefing, he explained that gold shipments had become less regular as of August compared with the previous two quarters, but assured that the situation has since improved.

According to Dr Asiama, GoldBod exported a significant amount of gold in the past week, helping to strengthen the country’s reserve position.

“The shipments have resumed. In fact, in the last week, Gold Board exported quite a significant amount of gold and this is supporting the reserves build-up,” he said.

The Governor said the latest information on the shipments was received after the start of the Monetary Policy Committee’s meeting, changing the assessment of the situation compared with the data available at the beginning of the meeting.

He noted that while the regularity of gold shipments had weakened as of August, the latest data shows that exports have picked up again.

Dr Asiama said the development does not currently pose a significant risk to Ghana’s reserve accumulation, stressing that the key risk lies instead in movements in international gold prices.

“What poses a risk is the international gold price out there, and you know that one is not within our control,” he said.

He explained that global factors, including movements in US monetary policy, can influence gold prices and subsequently affect the value of Ghana’s gold exports and reserve accumulation.

The Governor said that as long as international gold prices remain supportive, the Bank expects gold shipments to continue contributing to the build-up of Ghana’s reserves.

The development comes as the Bank of Ghana continues to prioritise reserve accumulation as part of its foreign exchange management strategy. Dr Asiama has also indicated that GoldBod is expected to play a greater role in the intermediation segment of the Bank’s evolving foreign exchange management framework.

The Bank is currently engaging GoldBod to finalise the new framework, with details expected to be communicated to the market once the arrangements are completed.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.