Seth Terkper Defends Gold Sector Reforms, Says They Strengthened Ghana’s Reserves and Supported the Cedi

Former Finance Minister Seth Terkper has defended recent reforms in Ghana’s gold sector, saying the measures have helped strengthen the country’s external reserves and supported the stability of the cedi.

Speaking on the PM Express Business Edition, Mr Terkper said one of the key economic priorities in recent years was rebuilding Ghana’s reserves to help protect the economy from external shocks.

According to him, efforts to improve the management and marketing of gold played an important role in achieving that goal.

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

Mr Terkper explained that the reforms focused on sanitising the gold marketing system to ensure that Ghana gained more value from its natural resources.

“It’s the sanitisation of the marketing of gold,” he stated.

His comments come at a time when public debate has intensified over the financial losses recorded by the  and the broader impact on the economy.

Some analysts have questioned whether the central bank’s financial position should only be assessed through its balance sheet or viewed in relation to wider economic outcomes such as currency stability and reserve growth.

Mr Terkper acknowledged that the reforms may not have been perfect but insisted they produced positive results for the country.

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

He added that the reforms brought greater order to the gold sector and improved 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 noted.

Mr Terkper also highlighted the importance of gold in the global financial system, describing it as one of the strongest alternatives to the US dollar.

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

He further argued that Ghana had not fully benefited from the strategic value of its gold resources over the years, despite being one of the world’s known gold-producing countries.

“Ghana is the Gold Coast,” he remarked.

According to him, large quantities of Ghana’s gold had for years been exported to other countries, where it was used to support and stabilise foreign 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 said.

Mr Terkper believes the recent reforms represent an important step towards ensuring that Ghana gains more economic value from its gold resources while strengthening the country’s financial stability.