Chamber of Mines CEO Says Cedi Depreciation Would Have Been Worse Without the Industry’s Support
Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines, has underscored the mining sector’s critical role in stabilising the Ghanaian currency, countering claims that the industry has not significantly impacted the cedi’s performance.
Speaking on Joy News’ PM Express Business Edition on September 19, Koney argued that without the mining sector’s contributions, the local currency could have depreciated to as much as ¢25 to $1.
Koney highlighted the sector’s significant contribution to foreign exchange earnings, emphasising a voluntary arrangement between mining companies and the Bank of Ghana, whereby a portion of the sector’s gold production is sold to the central bank for reserves.
“Over the last few years, we’ve had a collaboration with the Bank of Ghana where part of our gold is sold to them as part of their reserves. This has been voluntary, not compulsory, but we still do it,” Koney explained.
In response to suggestions that Ghana should increase its gold reserves similarly to non-mining nations, Koney pointed to a fundamental difference in the operational landscape.
“Countries that don’t mine gold often have huge reserves, but that’s because they play in a different space. Mining companies are not in that business. We bring the foreign exchange into the country to run our operations.”
He also noted that a large portion of mining revenue is reinvested locally through the purchase of inputs such as labour and energy, which are paid for in local currency. This mechanism, Koney suggested, further supports the cedi and offsets potential inflationary pressures on the economy.
