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For years, the Ghanaian Cedi’s sharp depreciation has been the primary driver of inflation, high import costs, and fiscal pressure. However, as we look at the economic landscape in early 2026, the narrative has fundamentally shifted. The Cedi’s historic stabilization and its 2025 performance as one of Africa’s strongest currencies is no “temporary blip” or coincidence. It is the direct result of a pragmatic and forward-thinking policy: the establishment of the Ghana Gold Board (GoldBod). While critics often attribute the Cedi’s stability solely to external factors, a closer look reveals that GoldBod has addressed the structural rot that previously undermined our national tender. This piece discusses whether the stabilization of the Cedi attributed to the Ghana Gold Board reflects an economic reality or a fallacy overstated by recent conditions.
Turning Informal Wealth into National Strength
Ghana has long been a top global gold producer. Despite this, a significant portion of this national wealth, specifically from small-scale miners, usually vanished into informal markets or was smuggled across our borders. This systemic leak deprived the Bank of Ghana (BoG) of vital foreign exchange, which creates a perennial forex supply gap that fueled speculation and depreciation. GoldBod has turned this tide by formalizing gold trading. The GoldBod now serves as the central buyer. This crucial role ensures the proceeds from our gold sales flow directly into the formal financial system.
This move has achieved more than just raising revenue. It has delivered a direct and powerful boost to our national coffers. Our Gross International Reserves, which is a key indicator of economic strength, grew to a robust $13.8 billion by the end of 2025. This creates a direct and powerful mechanism. With more gold export revenue entering our formal banking channels, the BoG gains access to a stronger and more reliable stream of foreign exchange. This transforms our reserves from a volatile pool into a strategic asset. When the BoG has a robust and growing reserve, particularly one underpinned by a tangible asset like gold, it gains the decisive “firepower” needed to manage market liquidity, smooth out volatility, and credibly ward off speculative attacks on the Cedi. It addresses the core problem where demand for foreign currency continually exceeded reliable supply.
Beyond Global Trends: A Structural Shield
It is a critical fallacy to suggest that the Cedi is merely riding the wave of high global gold prices. While favorable global prices for our commodities are certainly helpful, they do not fix a broken system. In fact, without GoldBod’s regulatory oversight, high gold prices could have perversely increased the incentive for smuggling and illicit trading, which will worsen forex leakage as seen in past cycles.
Instead, GoldBod’s comprehensive licensing regime and enforcement architecture have systematically reduced illegal trading to ensure that the “gold boom” hits the national accounts. The government’s strategy by bringing oversight under one roof and demanding transparency in every transaction has replaced a chaotic system with one built on clear traceability. This has had a profound effect on market psychology and expectations. Exchange rate volatility is often a crisis of confidence. When businesses, investors, and the public see credible and institutional steps being taken to formalize a major export sector, it reduces the panic-driven hoarding of US Dollars. Knowing that a stable forex inflow from gold is now institutionalized encourages market participants to hold Cedis for longer. This creates a self-reinforcing cycle of stability. As a result, GoldBod acts as a vital structural shield. It protects the Cedi from the worst effects of the inevitable rises and falls in global commodity prices.
Supporting the Private Sector, Not Stifling It
One of the most persistent misconceptions is that GoldBod creates a government monopoly that crowds out and hurts the private sector. The policy provides a transparent and regulated framework that enables both small and large scale miners. Prior to GoldBod, many legitimate small scale miners were marginalized and forced into informal networks by a lack of access to fair markets and transparent pricing. GoldBod, by providing a reliable, legal, and fair off-take point, brings these vital actors into the formal fold.
This is not about replacement. It is about integration. The private sector continues to drive production but now operates under clear rules that ensure national interest is served. Miners benefit from guaranteed sales at fair prices while the nation benefits because the resulting forex is retained within the BoG’s reserves to support the Cedi. This public-private synergy is the unsung engine behind our current currency resilience. Furthermore, by reducing smuggling, GoldBod safeguards the integrity of our entire gold sector. This boosts Ghana’s reputation globally and helps attract long-term international investment.
A Pragmatic Path Forward
While GoldBod is not a “panacea” for all our economic challenges and must be supported by continued fiscal discipline, inflation control, and efforts to diversify exports, it is undeniably the cornerstone of our current stability. The policy has successfully plugged a major structural gap that existed for decades. Its impact extends beyond mere forex numbers. It is a critical tool for managing market expectations and building long-term confidence in our economic governance.
As we move through 2026, the priority must be to strengthen GoldBod’s implementation further. This includes consistent and fair enforcement of licensing to maintain a level playing field. We must double down on providing targeted support such as access to financing, technical training, and equipment to small scale miners. Their sustained integration is vital for this formal success story to be inclusive and permanent. Coordination between GoldBod, the BoG, and the Ministry of Finance must also remain seamless to ensure a unified approach to forex management.
The verdict is clear: The stabilization of the Cedi is a reality born of bold domestic policy. Attributing it solely to external factors is to ignore the deliberate institutional reform that has taken place. GoldBod has proven that when Ghana decides to manage its sovereign resources with transparency, strategic intent, and unwavering political will, our currency can not only stand strong but also become a beacon of stability on the global stage. Let us consolidate this gain and build upon it.
A groundbreaking technical report presented to GoldBod on January 4, 2026, by economists from the University of Ghana, including Prof. Festus Ebo Turkson and Prof. Agyapomaa Gyeke-Dako, now provides hard evidence of what many suspected: GoldBod has delivered a benefit-cost ratio of approximately 18:1. This means for every dollar spent on the programme, Ghana’s economy gains eighteen dollars in measurable benefits.
By Dr. Eric Cobbinah
[Dip; ICM UK; B.A. (Hons); M.A.; Ph.D; LLB; LLM; BL Candidate, LLM Energy Law Candidate]
Ag. Deputy Executive Director
Fisheries Commission
