Gold Reforms Bolster Reserves and Support Cedi Recovery, Says Terkper
Former finance minister argues tighter oversight of gold marketing has strengthened Ghana’s reserve buffers and improved macroeconomic stability
Former Finance Minister Seth Terkper has defended recent reforms in Ghana’s gold sector, saying efforts to tighten oversight and sanitise gold marketing activities have played a critical role in rebuilding foreign reserves and supporting the recovery of the cedi.
Speaking on PM Express Business Edition amid renewed scrutiny of the financial position of the Bank of Ghana, Mr Terkper said the effectiveness of the reforms should be judged by their broader macroeconomic impact rather than the central bank’s recent operating losses.
According to him, the government moved swiftly during the economic crisis to strengthen Ghana’s reserve buffers, a strategy he said directly contributed to exchange rate stability and renewed investor confidence.
“One of the things was moving quickly to strengthen the reserves, which translated into the appreciation of the cedi,” he said.
Mr Terkper explained that the reforms focused on restructuring and tightening supervision within the gold trading and marketing system to reduce leakages and improve reserve accumulation.
“It’s the sanitisation of the marketing of gold,” he noted, adding that while the reforms were not without challenges, they had delivered tangible gains for the economy.
He argued that the intervention introduced greater accountability into the sector while significantly boosting the reserve position of the central bank.
“There’s some sanitisation of that whole sector, which led to a significant increase in reserves for the central bank,” he stated.
The former finance minister also highlighted the strategic importance of gold within the global financial system, describing the commodity as one of the strongest alternatives to dominant reserve currencies, particularly the US dollar.
“Globally, gold is the most aggressive competitor for the dollar, before you come to the euro, yen and others,” he said.
Reflecting on Ghana’s historical position as one of the world’s leading gold producers, Mr Terkper argued that the country had for decades failed to fully capture the economic value of its mineral wealth despite its identity as the former Gold Coast.
“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 remarked.
His comments come as debate intensifies over the role of gold reserve accumulation and mineral sector reforms in Ghana’s broader economic stabilisation agenda. Policymakers are increasingly positioning gold as a key pillar in rebuilding investor confidence, strengthening external buffers and supporting fiscal recovery efforts.
The renewed focus on reserve accumulation also follows continuing discussions around the operational losses recorded by the central bank and the sustainability of Ghana’s macroeconomic recovery path.
