Former Finance Minister Seth Terkper has defended recent reforms in Ghana’s gold sector, arguing that efforts to sanitise gold marketing and strengthen reserve accumulation have contributed to the appreciation of the Cedi and improved the country’s economic buffers.

Speaking on PM Express Business Edition, Mr. Terkper weighed in on ongoing discussions surrounding the financial position of the Bank of Ghana and the implications of its recent losses on the wider economy.

According to him, one of the government’s major policy responses during the economic challenges was to move swiftly to strengthen Ghana’s external reserves.

“One of the things was moving quickly to strengthen the reserves, which translated into the appreciation of the Cedi,” he stated.

Mr. Terkper explained that the strategy was closely tied to reforms introduced in the management and marketing of Ghana’s gold resources.

“It’s the sanitisation of the marketing of gold,” he said, adding that although the reforms may not have been perfect, they produced significant gains for the economy.

“Yes, you couldn’t get everything right, but at the same time, we need to compliment,” he remarked.

He noted that the reforms helped bring greater order and accountability to the gold sector while boosting 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.

Mr. Terkper also highlighted the strategic importance of gold within the global economy, describing it as a major competitor to dominant reserve currencies.

“Globally, gold is the most aggressive competitor for the dollar, before you come to the Euro, Yen and others,” he said.

Reflecting on Ghana’s historic role as a leading gold producer, the former Finance Minister argued that the country had not fully benefited from the value of its mineral resources over the years.

“Ghana is the Gold Coast,” he said, while lamenting that much of Ghana’s gold had historically been exported and used by other countries to support their own economies.

“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,” he stated.