GoldBod CEO explains financing model, targets independence from Bank of Ghana
The Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, has outlined the institution’s financing model, saying it is structured to support gold purchases while gradually ending its reliance on the Bank of Ghana (BoG) as an intermediary.
Speaking during a Space conversation on X on Sunday, August 9, 2026, Mr Gyamfi explained that GoldBod’s financing arrangements had evolved following the conclusion of the Bank of Ghana’s Domestic Gold Purchase Programme, under which the Precious Minerals Marketing Company (PMMC), GoldBod’s predecessor, served as a buying agent for the central bank.
He said it was important to distinguish between the funds required to purchase gold and the resources needed to cover GoldBod’s operational expenses.
“When we talk about financing or funding for Gold Board, you’re talking about number one, the revolving funds that the Gold Board deploys for gold purchases,” he said.
Mr Gyamfi explained that under the previous Domestic Gold Purchase Programme, the Bank of Ghana provided funds because it owned the programme and ultimately took possession of the gold purchased through PMMC.
“So, if I’m your agent and you’re the principal, you give me money to buy gold for you. That is not pre-financing of Gold Board. That is Bank of Ghana giving money to an agent to buy gold,” he said.
According to him, that arrangement remained in place until February 2026, when GoldBod assumed responsibility for gold trading under the new framework.
Under the new model, he said GoldBod finances its gold purchases through commercial banks and businesses that need foreign exchange for their transactions.
Mr Gyamfi said the Bank of Ghana initially served as an intermediary by converting cedi funds from commercial banks into US dollars to facilitate GoldBod’s gold purchases.
He stressed that the arrangement should not be interpreted as the central bank using its foreign exchange reserves to finance GoldBod.
“You must understand the difference between intervention and intermediation. The two words are not the same,” he said.
“Intervention is where the central bank forces its reserves to give effect to the market. Intermediation is where the central bank goes as an intermediary. Simply put, a middleman.”
Mr Gyamfi said GoldBod ended the Bank of Ghana’s intermediary role in July after the central bank’s Domestic Gold Purchase Programme came to an end and GoldBod was no longer operating as its agent.
“We don’t want to have any issues with the IMF,” he said.
GoldBod explores alternative financing
GoldBod is now pursuing alternative financing arrangements, including advance dollar payments from international gold off-takers and funded forward foreign exchange transactions with commercial banks.
Under the forward foreign exchange arrangement, Mr Gyamfi explained that GoldBod would sell expected future dollar inflows from gold exports to commercial banks in advance to raise funds for gold purchases without involving the Bank of Ghana as an intermediary.
He disclosed that GoldBod tested the arrangement on August 3, raising US$75 million and converting the cedi equivalent into dollars within 48 hours without using the Bank of Ghana.
He said GoldBod was working with the Bank of Ghana and the Ministry of Finance to refine the framework, with further adjustments expected by August 19.
“It is our expectation that once we are done, the Gold Board will stand on its own because that is what we want. We don’t want to depend on the Bank of Ghana again as an intermediary raising money for us,” Mr Gyamfi said.
Funding for operational expenses
On GoldBod’s operational costs, Mr Gyamfi said the institution was expected to finance its activities through its trading operations, either by factoring costs into its pricing structure or using gains from its trading activities.
He added that the government had decided to provide funding equivalent to five per cent of the value of gold purchased under a three-year reserve accumulation programme.
The programme is aimed at building Ghana’s foreign exchange reserves to a level equivalent to 15 months of import cover.
Mr Gyamfi described the five per cent allocation as a “baseline programme implementation cost” rather than a measure intended to offset losses incurred by GoldBod.
He said the overall financing framework was designed to enable GoldBod to operate independently while supporting the government’s broader objective of increasing foreign exchange earnings and strengthening Ghana’s international reserves.