GoldBod Ditches BoG Intermediary Role in New Financing Model

The Ghana Gold Board (GoldBod) has undergone significant changes in its financing structure following the end of the Bank of Ghana's Domestic Gold Purchase Programme, according to Sammy Gyamfi, the institution's CEO.

Gyamfi clarified that GoldBod's new model involves commercial banks and businesses providing funds for gold purchases, rather than relying on the Bank of Ghana as an intermediary.

The central bank initially acted as an intermediary by converting cedi funds into dollars for GoldBod's purchases, but this role ended in July. Gyamfi emphasized that this is not the same as the central bank using its reserves to finance GoldBod.

GoldBod has since tested a new financing mechanism, funded forward foreign exchange transactions with commercial banks, which allowed it to raise US$75 million on August 3 and convert the cedi equivalent into dollars within 48 hours without involving the Bank of Ghana. The institution is working with the central bank and Ministry of Finance to refine this framework.