Gold for Reserves Programme: Dalex Finance CEO Backs Shared Cost
Frank Ocansey
Editor, PulseView
Gold for Reserves Programme: The Chief Executive Officer of Dalex Finance, Joe Jackson, has expressed support for the Bank of Ghana (BoG) Governor’s call for a shared financial burden in the Gold for Reserves programme. Jackson’s comments come amid ongoing discussions about the programme’s costs and the need for transparency and accountability in managing Ghana’s gold-backed reserves.
The BoG Governor, Dr. Johnson Asiama, revealed on Monday, January 12, 2025, during a Public Accounts Committee sitting, that the Gold for Reserves initiative is currently under audit. He stressed that the Central Bank alone can no longer shoulder the financial cost of the programme and indicated that the Bank intends to seek reimbursement from the Ministry of Finance for expenditures incurred since the initiative’s inception.
In an interview on TV3’s Ghana Tonight, Joe Jackson highlighted the economic benefits of the programme, noting its role in stabilizing the Ghanaian cedi and supporting overall currency stability.
“Why should we stop gold purchases when they have kept the dollar stable or relatively lower than in previous years? I just say that this is a good thing. Let’s continue to do it. Let’s fix it, let’s make it accountable and transparent. Let’s make it as efficient as possible and let’s bear the cost together,” Jackson said, addressing host Alfred Ocansey.
Jackson emphasized that shared financial responsibility makes sense for a programme that has demonstrable benefits for Ghana’s economy.
“If the Gold for Reserves programme is good for us and costing us money, why shouldn’t we pay for it? I agree, and it makes complete sense,” he added.
Economic Rationale for the Programme
According to Jackson, Ghana’s gold reserves programme has played a key role in supporting the local currency and improving economic stability. By purchasing domestic gold, the Bank of Ghana has been able to bolster foreign reserves, reduce pressure on the foreign exchange market, and enhance confidence in the cedi’s stability.
He also stressed that the programme aligns with national developmental goals, allowing the country to retain a larger portion of the value of its gold exports.
“As a country, we are saying we like the cedi to be stable. If there is a developmental cost of owning our own economy, of taking a bigger chunk of the value of the gold we export, by all means, let’s do it. If it increases our reserves, by all means, let’s do it,” Jackson stated.
Calls for Reform and Accountability
While acknowledging the programme’s positive impact, Jackson underscored the need to review and reform the initiative to ensure efficiency, accountability, and proper management of public funds.
“The programme must be reviewed to ensure transparency, efficiency, and accountability. Government must fix the challenges of the programme as it has benefited the economy,” he said.
His comments highlight a growing consensus among financial and economic stakeholders that Ghana’s gold reserves programme should not be halted due to cost concerns alone, but rather managed collaboratively with shared responsibility between the BoG and the Ministry of Finance.
Implications for Ghana’s Fiscal Policy
The discussion around the Gold for Reserves programme reflects a broader conversation about responsible fiscal management and strategic economic planning in Ghana. By sharing the cost, the government can maintain critical monetary policy tools while ensuring the programme’s sustainability and transparency.
Experts argue that such initiatives are vital for stabilizing the currency, managing inflation, and maintaining investor confidence. Jackson’s endorsement adds weight to calls for collaborative funding, emphasizing that economic benefits often justify strategic expenditures.
Dalex Finance CEO Joe Jackson’s support for the shared cost approach to Ghana’s Gold for Reserves programme underscores the need for transparency, efficiency, and collective responsibility in managing the country’s gold-backed reserves. By balancing fiscal responsibility with developmental priorities, Ghana can continue to strengthen its currency, build reserves, and enhance economic stability.
The programme’s future, Jackson argues, should focus not only on cost-sharing but also on enhancing governance and accountability, ensuring that Ghana’s gold resources continue to deliver long-term benefits for the nation.
Junior Kojo
