Government has credited the Ghana Gold Board (GoldBod) with generating an additional US$15 billion in foreign exchange inflows, describing the intervention as a major factor behind the strengthening of the cedi, improved reserve accumulation and Ghana’s improving external position.
Presenting the 2026 Mid-Year Fiscal Policy Review in Parliament, Finance Minister Dr. Cassiel Ato Forson said the establishment of GoldBod formed a central component of government’s broader macroeconomic stabilisation strategy aimed at curbing gold smuggling, formalising the gold trade and ensuring the country captures greater value from its mineral resources.
According to the Minister, the initiative has delivered significant foreign exchange benefits within a relatively short period, helping to strengthen Ghana’s external buffers and support exchange rate stability.
“Through this intervention, Ghana generated an additional US$15 billion in foreign exchange inflows from gold, significantly strengthening reserve accumulation and supporting exchange rate stability,” Dr. Forson told Parliament.
Government says GoldBod was established not merely as a mining sector intervention but as an instrument of macroeconomic policy designed to underpin currency stability and external resilience.
The Finance Minister argued that the policy has transformed the contribution of gold exports to the broader economy by improving the capture of foreign exchange earnings and reducing leakages associated with informal trading and smuggling.
“This was not simply a gold policy. It was a macroeconomic stabilisation policy designed to strengthen the cedi, build external buffers and restore confidence in the Ghanaian economy,” he said.
The government believes the intervention has become one of the key drivers behind the country’s improved external accounts and broader macroeconomic recovery.
The impact of the GoldBod initiative is reflected in Ghana’s external sector performance, according to figures contained in the Mid-Year Review.
Government reported that the policy improved Ghana’s current account balance by 6.4 percentage points, with the surplus increasing from 1.9 percent of GDP in 2024 to 8.3 percent of GDP in 2025.
The Finance Minister described this as a fourfold increase in the current account surplus within a single year, underscoring the scale of the improvement in the country’s external position.
A stronger current account position generally supports currency stability by increasing the flow of foreign exchange into the economy and strengthening the country’s ability to meet external obligations.
Building on the gains from GoldBod, government has launched the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), an ambitious programme aimed at significantly increasing the country’s foreign reserve holdings.
Under the policy, Ghana is targeting international reserves equivalent to 15 months of import cover by the end of 2028, a level that would represent one of the strongest reserve positions in the country’s history.
As of June 2026, gross international reserves stood at 5 months of import cover, already exceeding the government’s original target of no less than three months.
To reinforce the reserve accumulation effort, government has reached an agreement with large-scale mining companies to purchase 30 percent of their annual gold production for refining by local refineries, a move expected to enhance domestic value addition while boosting reserve growth.
The forex inflows generated through GoldBod have coincided with a significant turnaround in the performance of the cedi.
Government reported that the Ghanaian currency appreciated by 40.7 percent against the US dollar in 2025, reversing several years of sharp depreciation and contributing to improved investor confidence.
The stronger currency has complemented broader efforts to reduce inflation, lower borrowing costs and restore macroeconomic stability. Inflation, according to the Finance Minister, declined from 23.8 percent in December 2024 to 5.7 percent by June 2026, while interest rates have also fallen significantly.
Government disclosed that implementing the reserve accumulation strategy comes with financial costs, particularly in relation to gold purchases under GANRAP.
However, authorities say they have significantly reduced the cost of the programme from an average of 14.5 percent of gold purchased to 5 percent, helping to improve its efficiency.
The 2026 Budget has accommodated a GH¢5 billion allocation to support implementation of the reserve accumulation programme.
Government argues that the expenditure should be viewed as an investment in economic resilience.
“This investment is building an economic war chest to strengthen Ghana’s international reserves, protect the cedi, reinforce macroeconomic stability, improve investor confidence and shield the economy from external shocks,” the Finance Minister said.
Source: businesspostonline
