Former Finance Minister Seth Terkper has defended recent reforms in Ghana’s gold sector, arguing that tighter controls and improved management have helped strengthen the country’s reserves and contributed to the appreciation of the cedi.
Speaking on PM Express Business Edition, Mr Terkper joined ongoing discussions surrounding the financial performance of the Bank of Ghana and the broader economic implications of the central bank’s reported losses.
According to him, one of the government’s key policy objectives was to rebuild Ghana’s external reserves as part of efforts to stabilise the economy.
“One of the things was moving quickly to strengthen the reserves, which translated into the appreciation of the cedi,” he said.
His comments come as debate intensifies over whether the Bank of Ghana’s recent losses should be assessed solely on the basis of its balance sheet or considered alongside wider macroeconomic outcomes.
Mr Terkper maintained that reforms within the gold trade should be evaluated based on their contribution to reserve accumulation, currency stability and the strengthening of Ghana’s economic buffers.
He explained that the intervention focused largely on restructuring and sanitising the country’s gold marketing system.
“It’s the sanitisation of the marketing of gold,” he stated.
While admitting that the process was not without challenges, he insisted the reforms delivered significant benefits to the economy.
“Yes, you couldn’t get everything right, but at the same time, we need to compliment,” he noted.
According to the former Finance Minister, the reforms improved oversight and reduced inefficiencies within a sector that had long suffered from weak controls and leakages.
“There’s some sanitisation of that whole sector, which led to a significant increase in reserves for the central bank,” he said.
Mr Terkper also placed Ghana’s gold industry within a wider global economic framework, describing gold as one of the strongest alternatives to the US dollar in international finance.
“Globally, gold is the most aggressive competitor for the dollar, before you come to the euro, yen and others,” he remarked.
He further argued that despite Ghana’s historical reputation as the Gold Coast, the country had not fully benefited from the strategic value of its mineral resources.
“Ghana is the Gold Coast,” he said.
He added that for years Ghana’s gold exports had largely benefited foreign economies rather than strengthening domestic economic stability.
“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 stated.
