GoldBod operations imposing losses on BoG balance sheet – Prof Bokpin

Economist Professor Godfred Bokpin has warned that the operations of the Ghana Gold Board (GoldBod) are imposing significant losses on the Bank of Ghana’s balance sheet, raising concerns about the true fiscal cost of the government’s domestic gold purchasing programme.

He said the central bank had effectively become the residual risk claimant in the domestic gold purchasing arrangement, exposing its balance sheet to technical, economic and valuation losses.“To the extent that Bank of Ghana has backstopped it virtually in terms of the intermediary role, providing the financing, being the residual risk claimant of this whole domestic gold purchasing arrangement, that also manifests in some losses.”