Tano North MP, Gideon Boako, says the 21st Century Gold Standard was piloted in Ghana under the leadership of former Vice President Dr Mahamudu Bawumia.
According to Dr Boako, Ghana’s Domestic Gold Purchase Programme and Gold-for-Oil initiative demonstrated that gold could be deployed as a modern monetary and reserve-management instrument without returning to the rigid gold standard of the 20th century.
He said the model provides a way for countries to strengthen their reserves while retaining flexibility in monetary policy.
“The 21st Century Gold Standard was piloted in Ghana under Bawumia,” Dr Boako said, pointing to the increase in Ghana’s gold reserves from about eight tonnes to more than 31 tonnes.
He also cited gross international reserves exceeding $9 billion by the end of 2024 as evidence of the potential of the approach.
He explained that the concept does not require a country to fix the value of its currency to a specific quantity of gold. Rather, gold can serve as a backing instrument and liquidity buffer while exchange rates remain flexible and central banks retain the ability to conduct independent monetary policy.
“Gold is not a relic. It is infrastructure,” Dr Boako said, arguing that Ghana’s experience could provide an important blueprint for commodity-producing economies seeking to convert their natural-resource wealth into stronger reserves and reduce excessive dependence on traditional reserve currencies.