A finance professor has cautioned that mounting pressure is likely to confront Ghana’s proposed Gold Board model following the decision by the Bank of Ghana (BoG) to exit gold trade financing.
According to the academic, the central bank’s withdrawal from directly funding gold purchases and trade operations could significantly test the sustainability and operational strength of the yet-to-be-fully consolidated Gold Board framework.
BoG’s Exit Raises Funding Concerns
The professor explained that the BoG’s involvement in gold trade financing had provided critical liquidity support to the sector, particularly under initiatives aimed at boosting gold reserves and stabilising the local currency.
With the central bank stepping back, questions are emerging about how the Gold Board model will mobilise sufficient capital to maintain consistent gold purchases from small-scale miners and licensed dealers.
“The real challenge now will be funding and risk management,” the professor noted, adding that without robust financial backing, the model could struggle to achieve its intended objectives.
Sustainability of the Gold Board Model
The Gold Board initiative is expected to streamline gold purchasing, enhance transparency, and maximise foreign exchange inflows from Ghana’s gold exports. However, analysts argue that the structure must demonstrate strong governance, adequate capitalization, and efficient oversight mechanisms to withstand market volatility.
The finance professor warned that any operational gaps could create room for parallel markets to thrive, potentially undermining state efforts to formalise the gold trade.
Call for Strong Institutional Framework
The academic further urged policymakers to ensure that the Gold Board is backed by clear regulations, credible leadership, and sustainable financing arrangements.
He stressed that while the BoG’s exit may reflect a strategic recalibration of its mandate, it inevitably shifts greater responsibility onto the new model to deliver results without direct central bank financial support.
As Ghana continues to leverage its gold resources to strengthen the economy, stakeholders say the coming months will be critical in determining whether the Gold Board model can withstand the anticipated pressure and meet national expectations.
