The International Monetary Fund has defended Ghana’s Domestic Gold Purchase Programme (DGPP) as a stabilising policy tool, stressing that the widely cited US$214 million figure associated with the initiative should not be interpreted as a financial loss by the Ghana Gold Board (GoldBod).
Addressing the issue at a press briefing in Washington, IMF Director of Communications Julie Kozack clarified that the amount reflects a policy-related accounting cost, known as a quasi-fiscal loss, rather than an operational deficit or failure of the programme. The clarification follows public debate triggered by the IMF Staff Report on the Fifth Review of Ghana’s IMF-supported programme.
Ms Kozack explained that the DGPP delivered critical benefits at a time when Ghana was under intense economic strain. According to her, the programme supported the accumulation of international reserves and helped reduce pressure on the foreign exchange market, contributing to broader macroeconomic stability.
She noted that the US$214 million figure resulted from normal features of commodity-backed interventions, including trading margins, fees and exchange rate movements, rather than mismanagement or inefficiency. These costs, she said, are not typically captured directly in government fiscal accounts but ultimately fall on the state.
To address this, the IMF has recommended reforms aimed at improving transparency and governance, including recording such costs in the national budget instead of the Bank of Ghana’s balance sheet. This approach, the Fund said, would help protect the central bank’s core monetary policy role.
The IMF’s position supports earlier explanations by GoldBod, which has consistently maintained that the DGPP was never intended as a profit-making venture but as a strategic response to economic challenges. The Fund’s assessment confirms that the programme’s outcomes should be judged by its stabilisation impact rather than short-term financial metrics.
Meanwhile, the Governor of the Bank of Ghana has told Parliament’s Public Accounts Committee that consultations are ongoing among key institutions, including GoldBod, to strengthen the programme in line with IMF recommendations. These discussions are expected to focus on governance reforms and clearer coordination between stakeholders.
GoldBod has welcomed the IMF’s clarification, viewing it as affirmation of the programme’s underlying purpose, and has pledged to enhance transparency and efficiency as the DGPP evolves.
