{"id":95899,"date":"2025-09-26T11:49:07","date_gmt":"2025-09-26T11:49:07","guid":{"rendered":"https:\/\/sotnews.agency\/?p=95899"},"modified":"2025-09-26T11:49:07","modified_gmt":"2025-09-26T11:49:07","slug":"gold-trade-is-a-revolving-business-not-huge-cash-reserves-sammy-gyamfi-explains","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=95899","title":{"rendered":"Gold trade is a revolving business, not huge cash reserves \u2013 Sammy Gyamfi explains"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 29 Second <\/div>\n\n <\/div>
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Chief Executive Officer of Goldbod, Sammy Gyamfi, has explained that the billions of dollars quoted in Ghana\u2019s gold export figures do not mean the company has such amounts stored as cash.<\/p>\n

Speaking in an interview with Joy FM, Mr Gyamfi said many people, including some Members of Parliament, wrongly assume that Goldbod is \u201cso rich\u201d whenever export figures are announced.<\/p>\n

\u201cThere are a lot of people who come to worry me because they think Goldbod is so rich. Anytime they hear that we\u2019ve exported $6 billion, they think the $6 billion is sitting somewhere,\u201d he said.<\/p>\n

According to him, gold trade is a revolving business and must be understood as such. He gave an example to explain the process:<\/p>\n

\u201cGold trade is a revolving business, so you can give me GH\u20b510,000 to buy gold but in a matter of a year, I can buy gold worth $1 billion with that GH\u20b510,000. Why? Because every three days I will buy gold worth GH\u20b510,000, go and sell it, bring the money again, convert it into cedis, buy gold again, go and sell it and get dollars, convert it into cedis. So cumulatively, you can buy $1 billion of gold over a certain period with just GH\u20b510,000 as the seed capital.\u201d<\/p>\n

He stressed that the $6 billion in exports does not mean the company had been given that exact amount to trade with. \u201cIt doesn\u2019t mean that we\u2019ve been given $6 billion and we bought $6 billion. It is a revolving trade,\u201d he clarified.<\/p>\n

Mr Gyamfi also explained how Goldbod raises its trading capital. He noted that the company is not currently drawing on its budgeted seed funds but largely receives support from the Bank of Ghana (BoG).<\/p>\n

He said the central bank provides funds through what is called an FX forward option. Under this arrangement, banks and businesses that need foreign exchange but cannot meet their demands through the commercial system submit requests to the BoG, which then processes them.<\/p>\n

\u201cSo BoG says if you need FX, come to me, make your request, and support it with the needed documentation. Once I clear that, I will fix a rate for you, I will give you seven days, I will take your cedis, and in seven days I will give you the dollar at a certain agreed rate,\u201d Mr Gyamfi explained.<\/p>\n

He added that once the BoG collects these cedis, part of the funds are given to Goldbod to buy gold. \u201cThat cedis plus the other cedis the BoG will have is given to Goldbod, then Goldbod, within a T+3 cycle, uses the cedis to buy gold, export the gold, and we get paid in dollars, and then the BoG gives us cedis again to go and buy gold.\u201d<\/p>\n

According to him, most of the dollars raised are used to meet market demands, which at one point reached as high as $50 million a day.<\/p>\n<\/div>\n

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\"GoldChief Executive Officer of Goldbod, Sammy Gyamfi, has explained that the billions of dollars quoted in Ghana\u2019s gold export figures do not mean the company has such amounts stored as cash.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12,9318,1789,2006,1883,117,10,9,169],"tags":[],"class_list":["post-95899","post","type-post","status-publish","format-standard","hentry","category-business","category-gold-trade","category-goldbod","category-hp-news-7","category-national","category-news","category-politics","category-popular","category-sammy-gyamfi"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/95899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=95899"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/95899\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=95899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=95899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=95899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}