Accra: Former Minister of Finance, Seth Terkper, has defended recent reforms in Ghana's gold sector, asserting that efforts to sanitize gold marketing and enhance reserve accumulation have contributed to the appreciation of the Cedi and strengthened the country's economic buffers. Terkper shared his insights during an appearance on PM Express Business Edition, addressing ongoing discussions about the financial position of the Bank of Ghana and the implications of its recent losses on the broader economy.
According to Ghana Web, Terkper emphasized that one of the government's key policy responses during economic challenges was the swift action to fortify 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. He elaborated that this strategy was closely linked to reforms in the management and marketing of Ghana's gold resources, noting that while the reforms were not flawless, they yielded significant economic benefits.
Terkper remarked on the improvements brought about by these reforms, which introduced greater order and accountability in the gold sector, thereby enhancing the central bank's reserve position. 'There's some sanitization of that whole sector, which led to a significant increase in reserves for the central bank,' he added. He also pointed out the strategic importance of gold in the global economy, labeling it as a formidable competitor to dominant reserve currencies.
Reflecting on Ghana's history as a leading gold producer, Terkper lamented that the country had not fully reaped the benefits of its mineral wealth over the years. 'Ghana is the Gold Coast,' he said, expressing regret that much of the nation's gold had historically been exported for the benefit of other countries' economies. 'Ghana's gold was going all the way out to other countries, which they were using to stabilize their economy, from the Middle East to Europe to everywhere,' he stated.