EXPLAINER: How Ghana earns foreign exchange from gold exports

Gold is one of Ghana’s major sources of foreign exchange. However, the country does not earn foreign currency simply because gold is mined and sold.

For Ghana to benefit, the gold produced locally must be properly recorded, purchased through approved channels and exported in a way that ensures the proceeds return to the country.

This is where the Ghana Gold Board, popularly known as GoldBod, comes in.

What role does GoldBod play?

GoldBod is a state institution responsible for regulating and organising the purchase and export of gold, particularly from the small-scale mining sector.

Before gold is exported, it must pass through approved channels. This allows the state to track how much gold is produced, who sells it and where it is going.

By overseeing the buying and export process, the government aims to reduce illegal gold trading and ensure that foreign exchange earned from Ghana’s gold exports comes back into the country.

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How does Ghana earn foreign exchange from gold?

The process involves several steps:

1. Gold is bought from local miners: GoldBod and its approved buyers purchase gold from small-scale miners through official channels.

2. The gold is weighed and tested: It is checked to establish its quantity, quality and source before being recorded for export.

3. The gold is exported: The gold is sold to buyers outside Ghana, generating foreign currency, such as US dollars.

4. The proceeds return to Ghana: The money earned from the sale is brought into the country’s financial system, adding to the supply of foreign exchange available to the economy.

How does the Bank of Ghana benefit?

Some of the gold purchased through the system is supplied to the Bank of Ghana and added to the country's gold reserves.

These reserves help strengthen the country’s external financial position and provide the central bank with an additional asset to support its foreign exchange reserves.

The Bank of Ghana can also use its foreign exchange resources to support transactions in the market, including payments for imports.

How much foreign exchange does Ghana earn from gold?

According to the figures provided, small-scale gold exports generated about US$10.8 billion in foreign exchange in 2025, compared with US$4.66 billion in 2024.

The figures highlight the growing contribution of small-scale gold mining to Ghana’s export earnings.

How does gold export help the Ghana cedi?

When Ghana earns more foreign exchange from gold exports, the supply of dollars in the economy can increase.

This can help ease pressure on the cedi, particularly when businesses need dollars to pay for imported goods and services.

Higher gold earnings can also help the country build its foreign reserves, providing a buffer against external economic pressures.

However, gold exports alone do not determine the value of the cedi. Other factors, including imports, debt payments, investor confidence and demand for foreign currency, also influence the exchange rate.

What does the government plan to do next?

The government has announced plans to apply similar policies to other minerals, including bauxite, manganese, iron ore and lithium.

The aim is to ensure that more of Ghana’s mineral resources are properly tracked, exported through official channels and processed locally before being sold abroad.

The broader objective is to move beyond exporting raw minerals and retain more value from the country’s natural resources.

Conclusion

Ghana earns foreign exchange from gold when locally mined gold is sold to buyers abroad and the proceeds are brought back into the country through official channels.

GoldBod's role is to organise and monitor the purchase and export process, while the Bank of Ghana benefits from gold supplied to it for the country's reserves.

The system is intended to ensure that Ghana retains more of the economic benefits from the gold mined within its borders.

ANAS/MA

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