GoldBod could strengthen cedi to GHC 12 per dollar in six months, says PMMC boss
According to Sammy Gyamfi, the Acting Managing Director of the Precious Minerals Marketing Company (PMMC), channeling gold sales through GoldBod will enhance regulation, boost revenue collection, and increase foreign exchange reserves, ultimately easing pressure on the cedi
Sammy Gyamfi, the Acting Managing Director of the Precious Minerals Marketing Company (PMMC) has said Ghana’s cedi could appreciate to GHC 12 per US dollar within six months if the country fully harnesses its gold resources through the Gold Board Initiative (GoldBod).
According to him, channeling gold sales through GoldBod will enhance regulation, boost revenue collection, and increase foreign exchange reserves, ultimately easing pressure on the cedi.
The link between gold and the exchange rate
Gyamfi explained that secure the cedi requires a consistent inflow of foreign exchange, which Ghana can achieve by legalising its gold trade.
“If we sell all our gold abroad and bring back the dollars, the cedi will strengthen. Today, the black market sells one dollar for GHC 16, up from GHC 15.5 just recently. Why? Because there are no dollars in the system. Importers struggle to secure forex, yet nearly 90% of goods in our markets are imported,” he stated.
He stressed that rising exchange rates directly impact the cost of essential goods, including milk, rice, and other household necessities. By ensuring that gold is sold through GoldBod, Ghana can secure foreign currency and stabilise the economy.
“Miners should not give their gold away for free but sell it to GoldBod on behalf of the government. The Gold Board will then buy, export, and return the dollars to Ghana. If we adopt this system for just six months, the exchange rate could drop from GHC 16 to GHC 12 per dollar,” he said.
Curbing gold smuggling for economic stability
Gyamfi decried the ongoing gold smuggling crisis, where Ghanaian gold is illicitly sold to buyers from Burkina Faso, India, and China.
“We are losing billions because these buyers evade taxes and royalties and do not repatriate the foreign exchange. The country makes no gains, yet we think we are making money,” he lamented.
By establishing gold sales through GoldBod, Ghana can prevent illegal gold exports and retain its forex earnings.
The role of GoldBod in strengthening the gold trade
GoldBod is envisioned as a centralised authority for regulating and formalising gold transactions in Ghana. Gyamfi emphasised that the initiative will: ensure transparency in gold trading, eliminate smuggling by enforcing strict sales regulations, retain forex earnings to support economic stability.
“Gold producers must sell only to licensed buyers approved by the Ghana Gold Board. If unregulated individuals handle the trade, they export gold but fail to bring back the needed dollars. That hurts all of us,” he stated.
Benefits for small-scale niners and Ghana’s economy
The initiative will also protect small-scale miners by providing a secure and regulated market where they can sell gold at competitive prices without falling prey to illegal buyers.
“With GoldBod, miners will no longer be exploited by unauthorised buyers. They will receive fair prices and operate within the law, improving their earnings and livelihoods,” Gyamfi stated.
The implementation of GoldBod will: increase foreign exchange reserves by keeping more dollars in the country, stabilise the cedi by reducing dependence on external forex sources, and curb gold smuggling and increase government revenue.
“For years, illegal gold trade has cost Ghana millions in lost revenue. It is time to put an end to this. GoldBod will ensure that every ounce of gold mined by small-scale operators is accounted for and sold legally,” he said.
Call for stakeholder support
Gyamfi urged miners, gold traders, and financial institutions to support GoldBod for the initiative to succeed.
“We need all hands on deck—from miners and traders to banks and policymakers. If we all commit, Ghana will benefit immensely. GoldBod is not just for the government; it is for the entire gold industry. Everyone must play their part.”
The discussion took place during a stakeholder engagement in Bolgatanga, Upper East Region, bringing together representatives from the Minerals Commission, the Bank of Ghana’s gold-buying desk, and the Ghana Gold Board’s technical committee.
Report by Mark Smith for Asaase News in the Upper East Region
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