Goldbod’s pricing policies raise transparency and fair play concerns in Ghana

Recent developments in Ghana’s gold trade business, led by Goldbod, leave much to be desired regarding the ground rules of fair play and transparency

The following issues beg for answers from government, particularly Goldbod:

1. Unfair pricing of gold in the local market

Goldbod has chosen to use the interbank rate in valuing gold on a daily basis. This is not only unfair to miners in Ghana but also a rip-off, since no commodity is priced using this rate for trade purposes. Even government payments for foreign currency–denominated goods and services do not use this rate as the basis for transactions. So why gold?

Furthermore, the Bank of Ghana has resorted to manipulating the rate by perpetually pegging the interbank rate below Bloomberg’s USD rate, effectively short-changing miners and undermining their investments in the gold mining business.

2. Issuance of two daily gold prices

Why is Goldbod now issuing two prices for gold purchases each day? This practice defies economic logic and reflects a lack of transparency on the part of both Goldbod and government in the controlled pricing regime of the JDM “Reset” administration.

Which commodity in the same market, for the same players, is sold at dual prices? This strongly suggests that Goldbod and government are concealing the true and fair price of gold in Ghana. If Goldbod can pay “bonuses” for gold, why not declare and pay the proper price outright? Why maintain different prices for the same commodity? Goldbod and government must come clean.

3. Harassment of miners and gold traders by national security operatives

To justify and enforce this opaque market system introduced by Goldbod, government has unleashed national security operatives across the country, whose task has been to intimidate and brutalize poor miners and traders.

As a result, gold trading is now conducted under the cover of darkness and secrecy. Is this the “Reset” promised by JDM?

The small-scale mining sector, which is predominantly driven by Ghanaian investment, needs urgent protection before it collapses completely.

By Hon.Patrick Boamah, MP Okaikwei Central