The Institute of Economic Affairs (IEA) has challenged the characterisation of a GH¢1.7 billion loss linked to the Bank of Ghana’s Domestic Gold Purchase Programme, arguing that the figure should not be attributed to the Ghana Gold Board (GoldBod) as an outright financial loss.
According to the IEA, significant portions of the amount reflect service and assaying fees earned by GoldBod, as well as foreign-exchange valuation differences arising from transactions conducted on behalf of the Bank of Ghana.
Prof. Alexander Bilson Darku, Director of Research at the IEA, said the distinction was important because transactions between GoldBod and the central bank could result in an expense being recorded by one public institution while generating income for another.
He made the observation at the IEA’s assessment of the 2026 mid-year budget review in Accra on Wednesday, held under the theme, “From Stabilisation to Transformation: An Assessment of Ghana’s 2026 Mid-Year Budget Review.”
Prof. Darku said service and assaying fees paid by the Bank of Ghana to GoldBod represented revenue earned by the institution for services provided.
“I don’t understand why somebody would call revenue a loss,” he said.
Exchange Rate Accounts for Major Component
The IEA researcher said approximately 90 per cent of the GH¢1.7 billion figure was largely attributable to foreign-exchange valuation differences rather than an actual loss of national wealth.
He explained that GoldBod purchased gold on behalf of the Bank of Ghana, after which proceeds were converted from US dollars into Ghana cedis using the applicable reference exchange rate.
According to him, differences between the exchange rate at the time of purchase and the rate used to value the proceeds could produce an accounting loss on the Bank of Ghana’s books.
He argued that such a valuation effect should not automatically be interpreted as money physically lost by the country.
“It is merely a book accounting issue, and not a significant loss to the nation,” Prof. Darku said.
He said the transactions should instead be assessed from the perspective of government as a whole, since the loss recorded by the central bank could correspond with a gain recorded by another state institution.
“To the Government, its monetary authority, which is the Central Bank, has made that loss. To the Government, its Gold Board has made that gain,” he said.
IEA Calls for Scrutiny of GoldBod Finances
Despite challenging the description of the GH¢1.7 billion as a GoldBod loss, Prof. Darku said the institution’s financial operations should continue to receive close scrutiny.
He noted that GoldBod was moving towards a financing model in which it would increasingly rely on private-sector funding for its gold-purchasing activities instead of depending primarily on Bank of Ghana financing.
He said the shift could contribute to the development of Ghana’s capital markets if properly managed, but stressed the need for transparency, prudent financial management and strong oversight.
Prof. Darku also acknowledged GoldBod’s role in boosting gold exports and foreign-exchange inflows, which he said had contributed to reserve accumulation and supported the stability of the cedi.
He said improved exchange-rate stability could have wider economic benefits by helping to lower import costs, ease inflationary pressures and reduce interest rates, while also improving the country’s debt-to-GDP position and ability to manage foreign-denominated debt.
IEA Warns Against Gold Dependence
The IEA Director of Research, however, cautioned against making gold the principal pillar of Ghana’s foreign-exchange stability and reserve accumulation strategy.
He called for stronger export promotion, import substitution, improved regulation of the foreign-exchange market and increased local ownership of productive assets.
He also urged government to use the recent improvement in macroeconomic indicators as a foundation for broader structural transformation rather than treating stabilisation as an end in itself.
Prof. Darku said the country must focus on agriculture, job creation and local processing of natural resources while pursuing reforms to Ghana’s natural-resource regime.
He further advocated the transformation of GoldBod from primarily a gold trading institution into a strategic asset manager capable of contributing more broadly to national economic development.
While commending government for improvements in macroeconomic stability, he said the real test would be whether those gains could translate into sustainable growth and improved living standards.
“The IEA thinks that the Government has done well to achieve some reasonable macroeconomic stability, and most of the macro-indicators have moved in the right direction within a relatively short period of time,” he said.
“The question is whether we have the courage to consolidate those gains into lasting economic transformation that includes the lives of every Ghanaian.”
Prof. Darku also called for stronger enforcement powers for the Fiscal Council and measures to ensure that reductions in the monetary policy rate translate into lower lending costs for businesses and the private sector.
