"GoldBod delivers strong economic gains despite BoG trading loss" – Report

Ghana’s gold-for-reserves programme has produced major macroeconomic benefits that significantly outweigh the trading losses recorded by the Bank of Ghana (BoG), according to a new report presented to the Ghana Gold Board (GoldBod).

The study, conducted by economists from the University of Ghana and the University of Ghana Business School, finds that GoldBod has sharply reduced gold smuggling, boosted foreign exchange inflows and strengthened Ghana’s external position.

Artisanal and small-scale mining (ASM) gold exports rose from 63.6 tonnes in 2024 to 103.0 tonnes in 2025, an increase of 39.4 tonnes.

The report attributes most of the increase to the formalisation of previously smuggled gold, generating an estimated US$3.8 billion in additional foreign exchange inflows.

These gains, the authors note, far exceed the US$214 million trading loss reported by the BoG and cited by the IMF.

Benefits from reduced smuggling alone outweigh the loss by about 18 times.

The report also highlights major savings from non-debt foreign exchange inflows.

ASM exports facilitated through GoldBod were valued at about US$10.8 billion in 2025. Raising a similar amount through borrowing would have cost Ghana up to US$1.08 billion annually in interest, the authors estimate.

Beyond foreign exchange, GoldBod is credited with supporting international reserves of US$11–12 billion, stabilising the cedi, lowering external debt servicing costs by about GH¢6.2 billion, reducing the import bill, and easing inflationary pressures.

The report argues that the BoG’s reported loss largely reflects accounting effects rather than real cash losses, estimating the true economic cost of the programme at about 2.5% of the value of gold traded.

It added that GoldBod should be seen as a macroeconomic stabilisation tool rather than a profit-driven entity, describing it as a high-impact policy that has reduced reliance on external borrowing and strengthened Ghana’s economic stability.

Story by: Joshua Kwabena Smith