Ghana’s gold was stabilising other economies – Terkper on BoG loss

Former Finance Minister Seth Terkper has defended recent government efforts to reform and tighten management of Ghana’s gold sector, arguing that the measures have significantly strengthened the country’s foreign reserves and contributed to the appreciation of the cedi.

Speaking on PM Express Business Edition, Mr. Terkper addressed ongoing public debate surrounding the financial losses recorded by the Bank of Ghana, insisting that the discussion should not focus solely on the central bank’s balance sheet but also consider the broader economic gains achieved through recent policy interventions.

According to him, one of the government’s immediate priorities was to rebuild Ghana’s external reserves in order to improve macroeconomic stability and restore confidence in the economy.

“One of the things was moving quickly to strengthen the reserves, which translated into the appreciation of the cedi,” he stated.

Mr. Terkper explained that the gains in reserves were closely linked to reforms introduced in the gold sector, particularly efforts aimed at improving transparency and tightening control over gold marketing and exports.

“It’s the sanitisation of the marketing of gold,” he said.

He acknowledged that the reforms may not have been flawless but maintained that they produced meaningful economic benefits for the country.

“Yes, you couldn’t get everything right, but at the same time, we need to compliment,” he remarked.

The former Finance Minister noted that the restructuring and regulation of the sector helped reduce leakages, improve accountability, and increase the amount of gold-related revenue and reserves flowing into the central bank.

“There’s some sanitisation of that whole sector, which led to a significant increase in reserves for the central bank,” he explained.

Mr. Terkper further placed Ghana’s gold industry within the context of the global financial system, arguing that gold remains one of the strongest alternatives to the US dollar in global markets.

“Globally, gold is the most aggressive competitor for the dollar, before you come to the euro, yen and others,” he stated.

He stressed that despite Ghana’s long-standing identity as one of the world’s major gold producers, the country had historically failed to maximise the strategic economic value of its mineral resources.

“Ghana is the Gold Coast,” he said.

Mr. Terkper also raised concerns about the extent to which Ghana’s gold had benefited foreign economies more than the country itself over the years.

“Ghana’s gold was going all the way out to other countries, which they were using to stabilise their economy, from the Middle East to Europe to everywhere,” he noted.

He suggested that the recent reforms are intended to ensure Ghana derives greater economic value from its gold resources while strengthening national reserves and supporting long-term currency stability.