The Ghana Gold Board (GoldBod) has explained why the Bank of Ghana (BoG) purchases artisanal and small-scale mining (ASM) gold at spot prices through the board as an aggregator, describing the practice as a deliberate policy to curb smuggling and channel sufficient volumes of gold through formal sources.
In a statement on Monday, January 5, GoldBod clarified that the purchase of ASM gold at spot prices has been a core feature of the Gold-for-Reserves (G4R) programme since its inception in 2022.
The board emphasised that the approach is not intended to generate profit for the central bank but rather to support reserve accumulation and broader macroeconomic gains.
“While this approach may create costs for the Bank of Ghana, the programme’s intent has always been reserve accumulation and macroeconomic stability—not profit for the central bank,” the statement read.
GoldBod stressed that attempts to buy gold at a discount for commercial gain would undermine the programme’s objectives.
The board cited historical evidence of the sensitivity of the artisanal gold market to pricing. In 2021, the introduction of a 3% withholding tax contributed to a sharp decline in official small-scale gold exports, falling from 39.3 tons worth US$2 billion in 2020 to just 3.4 tons valued at US$184 million.
GoldBod highlighted that this experience demonstrates the direct link between non-competitive purchase prices and increased smuggling, reinforcing the rationale for maintaining spot-price purchases to secure formalisation of the ASM sector and protect national reserves.
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