The International Monetary Fund (IMF) has cautioned that the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) could pose emerging financial risks, even as it acknowledged significant improvements in Ghana’s macroeconomic stability.
The warning followed the conclusion of an IMF mission to Accra led by mission chief Ruben Atoyan, which reviewed Ghana’s performance under the Extended Credit Facility and held discussions on a proposed new Policy Coordination Instrument with government officials.
While the Fund noted encouraging signs of recovery—including easing inflation, stronger external reserves, improved confidence in the cedi, and better-than-expected economic growth in 2025—it stressed that underlying vulnerabilities remain.
A key concern raised by the IMF is that losses associated with the DGPP may be creating quasi-fiscal pressures that could weaken the Bank of Ghana’s financial position if not properly addressed.
The Fund emphasized that maintaining a prudent and forward-looking monetary policy is essential for anchoring inflation expectations, adding that restoring and safeguarding the central bank’s balance sheet should be a priority.
“The losses associated with the Domestic Gold Purchase Programme (DGPP) underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet,” the IMF said in its statement issued on Friday.
It further recommended that any future costs related to the programme should be clearly reflected in the national budget to improve oversight and accountability.
“Efforts to protect the Bank of Ghana’s balance sheet from DGPP-related quasi-fiscal risks and budget recognition of future costs would help enhance accountability and oversight,” the statement added.
Despite the caution, the IMF praised Ghana’s recent macroeconomic progress, noting stronger fiscal performance, a declining debt ratio, and renewed investor confidence supported by the successful return of domestic bond market activity.
The Fund also confirmed that Ghana has reached a staff-level agreement on policies for a new 36-month non-financing programme aimed at sustaining reforms after the current IMF-supported arrangement concludes.
However, it warned that Ghana remains exposed to external shocks, including geopolitical tensions in the Middle East that could drive up global prices of energy, food, and fertiliser.
The IMF urged policymakers to avoid past fiscal lapses such as rising debt levels, budget imbalances, and weakened financial buffers, stressing that continued discipline and reform implementation will be critical to sustaining economic gains.
