Former Finance Minister Seth Terkper has defended recent reforms in Ghana’s gold sector, arguing that tighter management and improved oversight have strengthened the country’s reserves and contributed to the appreciation of the cedi.
Speaking on PM Express Business Edition, Mr Terkper said Ghana had for years failed to fully benefit from the strategic value of its gold resources, with much of the commodity leaving the country and supporting foreign economies instead.
“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.” - Seth Terkper
Gold Reforms and Reserve Growth
Mr Terkper explained that one of the key policy responses to Ghana’s recent economic challenges was the deliberate effort to rebuild external reserves through reforms in the gold sector.
According to him, the intervention focused on improving the marketing and management of gold exports to ensure the country derived greater economic value from its mineral resources.
“One of the things was moving quickly to strengthen the reserves, which translated into the appreciation of the cedi,” he said.
He described the process as a “sanitisation of the marketing of gold,” adding that although the reforms were not flawless, they had produced measurable gains for the economy.
“Yes, you couldn’t get everything right, but at the same time, we need to compliment,” he noted. Mr Terkper maintained that the changes brought more order to the sector and significantly improved 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 added.
Gold’s Strategic Global Role
The former Finance Minister also highlighted the growing global importance of gold within the international financial system.
“Globally, gold is the most aggressive competitor for the dollar, before you come to the euro, yen and others,” he said.
He argued that Ghana, historically known as the Gold Coast, had not fully leveraged its position as a major gold producer to strengthen its economic resilience.
His comments come amid ongoing debate over the financial position of the Bank of Ghana and whether recent losses at the central bank should be assessed solely through its balance sheet or in the context of broader macroeconomic outcomes, including currency stability and reserve accumulation.
Mr Terkper insisted that the impact of the reforms should be measured by their contribution to stabilising the economy and strengthening Ghana’s financial buffers.
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