Gold board boss says his agency isn't losing money, the central bank is. Sammy Gyamfi, the CEO of Ghana's state-owned Ghana Gold Board, called out reports of financial losses on a TV3 show called KeyPoints. He was responding to an International Monetary Fund review that mentioned the Bank of Ghana lost 214 million dollars on a gold trading program. Gyamfi clarified that his board, also called GoldBod, did not create those losses. He argued his organization is less than a year old and runs a surplus, with public financial statements to prove it. He stated the IMF never said GoldBod itself was in the red.
Gyamfi explained that the whole point of the Gold for Reserves program is not profit. He said GoldBod has a mandate to generate foreign exchange and build up reserves for the Bank of Ghana. The pricing for buying gold from small-scale miners was set up for bigger economic goals, like stabilizing the currency and controlling inflation. He admitted the central bank's accounting shows costs from the program. He insisted that those costs need to be compared to wider macroeconomic benefits. Gyamfi finished by repeating that his agency is driven by its mandate, not profits, and should not be judged on that basis.
Gyamfi explained that the whole point of the Gold for Reserves program is not profit. He said GoldBod has a mandate to generate foreign exchange and build up reserves for the Bank of Ghana. The pricing for buying gold from small-scale miners was set up for bigger economic goals, like stabilizing the currency and controlling inflation. He admitted the central bank's accounting shows costs from the program. He insisted that those costs need to be compared to wider macroeconomic benefits. Gyamfi finished by repeating that his agency is driven by its mandate, not profits, and should not be judged on that basis.
