Gold buyers in Ghana went weeks without funding – Report

Some licensed gold buyers in Ghana reportedly went for up to three weeks without receiving funds from GoldBod, affecting their ability to purchase gold from traders. According to a reuters.com report, five industry sources say some buyers were forced to suspend purchases or borrow money to keep their businesses running. A gold trader in the Ashanti Region said the delays had become a major challenge, while a GoldBod-funded buyer in the Western Region said funds had not been received for about three weeks. The funding delays come despite a rise in gold prices, putting pressure on buyers who need cash to purchase gold from local producers. Domestic Gold Purchase Programme drained Bank of Ghana's finances - IMF GoldBod, however, has denied facing a funding shortage. The agency said its operations remain fully funded and that payments to licensed aggregators are based on their creditworthiness, security and risk assessments. Chief Executive of the Chamber of Gold Buyers, Kwaku Ohemeng Amoah, stated that GoldBod’s decision to finance purchases from its own balance sheet after moving away from Bank of Ghana funding may have contributed to the delays. GoldBod CEO Sammy Gyamfi has mentioned that the agency raised nearly $839 million in advance funding for gold purchases between March and May. It also raised about $75 million through a foreign exchange auction in August before suspending the programme for consultations with the Bank of Ghana. The Bank of Ghana has not yet publicly commented on the reported funding delays. DR/SA 'We will not borrow simply because financing is available' – Ato Forson Source: www.ghanaweb.com
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