GoldBod Buyers in Ghana Hit by Funding Delays Amid Surging Bullion Prices

Ghana's artisanal gold marketing agency, GoldBod, is facing funding delays that have left licensed buyers waiting up to three weeks for payments. This has forced some operators to halt purchases or borrow money to stay in business, despite surging bullion prices.

The Bank of Ghana initially funded GoldBod's purchases, which helped boost Ghana's economic recovery and stabilize the economy. However, after losses linked to these purchases, the IMF called for an end to central bank financing, leaving GoldBod reliant on commercial banks and gold importers for liquidity.

GoldBod raised nearly $839 million in advances for purchases between March and May, but a foreign exchange auction to commercial banks on August 3 only raised about $75 million before being paused for consultations with the central bank. The agency's chief executive, Sammy Gyamfi, said that GoldBod was working to address the funding concerns with the Bank of Ghana.

The delays have left gold traders struggling to stay afloat, with one trader in Ghana's Ashanti Region saying 'The last two weeks were terrible. You could spend a whole day waiting and not receive any funds.'