How Iran war is hitting Ghana's export of gold – Report

The ongoing war in the Middle East has reportedly disrupted Ghana’s export of gold, which is the country’s major export commodity.

According to a report by reuters.com, the war, which started after the United States and Israel attacked the Islamic Republic of Iran, has made it impossible for Ghana to transfer gold to Dubai in the United Arab Emirates, where Ghana refines it for supply to several countries, including Switzerland, Hong Kong and India.

The report indicated that the situation has led the Ghana Gold Board (GoldBod), Ghana's state-run artisanal gold exporter, to work on shifting its gold cargoes to alternative refining hubs if flight disruptions to Dubai persist.

The board is working to find a solution to the current challenge because about 80% of Ghana’s gold is refined in the United Arab Emirates (UAE) from output from its vast artisanal and small-scale mining (ASM) sector.

“GoldBod, sole official buyer and exporter of Ghana's ASM gold since its creation last year, has already drafted contingency routes outside the UAE, though it has yet to feel any direct impact,” said a senior GoldBod official, without disclosing where those routes are.

“Potential alternative refining centres for Ghana include Shanghai and refining hubs in India, although going there would be more costly, gold traders and precious metals analysts said,” a section of the report read.

The report indicated that the leadership of GoldBod did not expect the situation to affect actual trade because of the longstanding interest from rival buyers.

"There is always a market for gold. We have people lined up who have been knocking for years, some even ready to pay a premium," a GoldBod official, who requested anonymity because he was not authorised to speak to the media, is quoted as saying.

Read the original report below

BAI

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