Hon. Atta Issah, Member of Parliament for Sagnarigu and member of the Finance Committee, has revealed that Ghana’s gold purchasing arrangements are set for a pricing overhaul, with the Bank of Ghana’s (BoG) reference rate being phased out in favour of the international Bloomberg rate.
This fundamental transition will directly apply to commercial transactions conducted between domestic banks, the Ghana Gold Board (GoldBod), off-takers, and small-scale miners.
“The lesson learnt here is that there won’t be any incentive for us to use BoG rate as reference. The bankers, GoldBod and the offtakers will do a direct negotiation with Small Scale Miners, and that no BoG rate will be needed. Now we’ll trade at Bloomberg rate, not BoG rate, even though the Central Bank will be managing the reserve end of things, and it’s possible.”
Hon. Atta Issah, Member of Parliament for Sagnarigu
Expanding on the decision, the lawmaker noted that shifting away from the central bank’s reference price creates a market-reflective framework that completely removes previous operational distortions.
The adjustment ensures that commercial gold aggregators, off-takers, and licensed institutions engage in direct, transparent price discovery with artisanal and small-scale miners using international market benchmarks.
Under the new arrangement, the central bank will strictly maintain its core macro-monetary responsibility of managing reserve accumulation without intervening directly in transactional pricing mechanisms.
Operational Benefits and Financial Value Realization
Eliminating the Bank of Ghana reference rate in favor of the Bloomberg index provides substantial macroeconomic and fiscal advantages for Ghana’s extractive sector.
By aligning domestic purchases directly with real-time global price movements, the framework insulates the domestic gold market from costly quasi-fiscal losses and valuation lags that previously burdened central bank operations.
Commercial banks and off-takers can now price transactions based on live market spot prices, promoting competitive pricing, mitigating arbitrage risks, and boosting liquidity within the formal gold trading network.
This structural reform also significantly bolsters the operational efficiency of the newly instituted Ghana Accelerated National Reserve Accumulation Programme (GANRAP).
Designed to aggressively build Ghana’s foreign exchange reserves to a coverage of 15 months of imports by the end of 2028, GANRAP relies on a steady, transparent influx of gold.
Adopting a globally recognized reference rate simplifies transaction settlements for GoldBod, assuring small-scale miners of fair market value while guaranteeing that the state accumulates strategic reserves without creating unbudgeted liabilities on the central bank’s balance sheet.
Source Traceability and Trade Negotiating Power
Complementing the pricing reform, the government is finalizing critical infrastructure to verify the origin of all gold entering formal supply chains.
Hon. Atta Issah confirmed that the country is currently “at the final stage of the procurement process for the traceability mechanism to trace the source of gold.” He emphasized that “when you know the source, negotiation is better,” pointing out that full supply-chain transparency reinforces Ghana’s leverage when dealing with international off-takers and refining entities.
Establishing robust origin tracking also responds directly to global compliance standards regarding responsible mineral sourcing.
Knowing the precise geographic origin of domestic bullion allows state institutions to audit supply lines effectively, weed out illegally sourced minerals, and ensure that gold supporting national reserves meets strict international trade criteria.
Social Approaches to Environmental Governance
Addressing broader sustainability challenges, Hon. Atta Issah acknowledged recent warnings from international financial institutions regarding the environmental toll of illegal small-scale mining (galamsey).
“I appreciate the concerns raised by the IMF on the environmental impact,” he remarked, stressing that the government must carefully balance environmental protection with safeguarding livelihoods for mining communities.
The Sagnarigu MP argued that punitive regulatory measures alone are insufficient to curb illegal extraction.
“You can’t solve galamsey with legislation or enforcement,” Atta Issah explained, emphasizing that sustainable solutions require “social and community level approaches.”
By combining transparent Bloomberg-backed pricing, origin traceability, and community-centered environmental governance, the state aims to transition informal operations into a regulated, eco-friendly sector that powers national reserve accumulation.
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