BoG Chief Calls for Unity on Gold-for-Reserves Losses (Programme Still Key to FX Stability)
On Monday, Dr. Johnson Pandit Asiama, the Governor of the Bank of Ghana, called for a unified national response to the losses from the Gold-for-Reserves (G4R) program. He stressed that the program is still important for building reserves, even though it has lost a lot of money since 2021. He told the Public Accounts Committee (PAC) in Accra, “The losses should not be a reason to point fingers, but rather a reason for everyone to work together.” We are asking for a unified national response. We want everyone to help make the program better so that it works better and helps stabilize the economy. Dr. Asiama said that the program, which was meant to strengthen reserves and diversify Ghana’s foreign exchange portfolio, had collected 110.99 tonnes of gold by 2025, worth US$11.399 billion. However, it had also lost a total of GHS4.893 billion, and the numbers for 2025 are still being checked. He said that the Bank could no longer cover all of the costs and added, “The scheme was put in place to solve national problems.” “How can we change them and make them work better?” he asked, and he stressed the program’s importance by saying, “The Gold for Reserves program is still relevant.” The goal is to build up reserves. It’s not a matter of shutting it down; rather, it’s about making it more efficient and getting rid of inefficiencies. Dr. Asiama talked about ongoing changes, such as lowering some fees, getting input from stakeholders like the Ghana Gold Board, and including costs in the national budget to make the system more sustainable. Madam Abena Osei Asare, the PAC Chairperson, was worried about the US$217 million that was supposed to be given to the Gold Board in the 2025 Budget but hasn’t been yet. She urged timely payments to help the program run smoothly.
