The Minister of Energy and Green Transition, John Jinapor, has endorsed the purchase of gold as a strategic measure to strengthen the economy.
According to him, leveraging gold-backed foreign exchange (forex) can provide crucial financial support to Bulk Distribution Companies (BDCs), Independent Power Producers (IPPs), and other key sectors.
Speaking on PM Express on JoyNews on Tuesday, March 18, he argued that this approach would help stabilise the local currency and bring greater predictability to the financial system.
“I fully endorse the purchase of gold and the use of forex to support not just the BDCs but also the IPPs and other critical sectors of the economy to stabilise the currency and enhance predictability,” Mr Jinapor stated.
He explained that the initiative is a prudent economic move, as purchasing and exporting gold gives the government greater control over forex inflows.
However, he acknowledged inefficiencies in the previous system, primarily due to excessive middlemen in the process.
To address these concerns, Mr Jinapor stressed the need to eliminate unnecessary intermediaries while involving key private sector stakeholders, including BDCs and Oil Marketing Companies (OMCs).
“You want to bring in the private sector players, the BDCs and the OMCs, around the table so that there is a high level of transparency,” the Minister said.
He revealed that the gold purchase policy has been suspended to allow for a comprehensive review.
“It’s currently suspended, and a joint committee, co-chaired by the Deputy Minister of Finance and the Deputy Minister of Energy, is being formed. They will engage all stakeholders to develop a clear roadmap that benefits both the government and the private sector while preventing situations where, under the previous administration, the Bank of Ghana suffered significant losses.”
Mr Jinapor noted that the Bank of Ghana incurred substantial financial setbacks under the previous system, with losses estimated at nearly GH₵1 billion.
“So far, records indicate that the Bank of Ghana suffered huge losses—almost GH₵1 billion. One arm of the economy may benefit, but another suffers as a result.
“We don’t want that. We want a workable, efficient system that protects both the government and private sector players while ensuring forex availability,” he added.
The Minister reaffirmed that the new approach will prioritise sustainability and accountability, ensuring that forex generated from gold exports is used effectively to strengthen key sectors of the economy.
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