'We’re selling gold but not saving it' - Effia MP demands plan to build Ghana’s reserves

Isaac Yaw Boamah-Nyarko, a member of Parliament’s Finance Committee, criticized the government. He said it has failed to secure long-term economic stability. This is despite recent gains in gold and cocoa prices.

The Effia MP spoke on JoyNews’ PM Express on May 26. He expressed concern about the lack of a strategic plan for growing reserves, especially gold holdings.

“We’re selling gold but not saving it,” he warned. He noted that Ghana risks wasting a rare economic opportunity.

By December last year, Ghana's gold reserves were at 30 tonnes. However, five months later, almost 20 tonnes have been sold. The reserves have grown by less than one tonne since then.

He questioned the future trajectory of these reserves. “How much reserve would you have built into your system?” he asked.

Boamah-Nyarko insisted that the current positive commodity price trend will not last forever. “We are not going to get this gold price going on like this forever,” he said. He also mentioned that cocoa prices will not rise indefinitely.

He revealed that Parliament will summon the Finance Minister for answers. They want to know the government's strategy to consolidate these gains.

“We’re going back to Parliament tomorrow,” he stated. They seek information on how to build buffers for tough times.

Mr Boamah-Nyarko argued that while the government takes praise during recovery, it lacks long-term provisions for sustainability. “We are unable to plan well,” he said.

He cited COVID-19's aftermath as exposing Ghana’s weak fundamentals, which remain unchanged since then. “Our fundamentals are weak,” he noted.

The MP demanded that the Vice President outline how current gains translate into long-term buffers. “We want assurance from the Vice President,” he added.

Mr Boamah-Nyarko highlighted the difference between Ghana’s gold reserves and those of global powers. The US has over 8,000 tonnes; the UK has over 2,000 tonnes.

He stressed boosting reserves is crucial for defending currency and stabilizing the economy. “If we use this rainfall wisely, we can bring down the cedi while building reserves,” he explained.

His comments come amid renewed economic optimism but emphasize a need for a clear preservation plan.