The International Monetary Fund (IMF) has raised concerns over the financial impact of the Bank of Ghana’s Domestic Gold Purchase Programme, revealing that losses linked to the initiative were significantly higher than previously reported.
According to the IMF Country Report No. 26/213, prepared as part of Ghana’s 2026 Article IV Consultation, the programme generated losses exceeding US$1.7 billion in 2025, representing about 1.5 per cent of Ghana’s Gross Domestic Product (GDP).
The report said the losses were largely associated with the Bank of Ghana’s purchase of gold doré under the Gold-for-Reserves (G4R) component of the programme.
The IMF noted that the losses amounted to approximately 17 per cent of the value of doré gold sold by the central bank.
The revelation contrasts with earlier reports that placed the Bank of Ghana’s losses from the programme at about US$214 million, indicating that the overall financial impact was substantially larger when broader programme-related costs were considered.
The Fund attributed the losses to several factors, including service and assay fees paid to the Ghana Gold Board (GoldBod), discounts applied to gold sold to exporters and off-takers, and foreign exchange losses arising from differences between the rates used in gold purchases and the rates applied for accounting purposes.
The report explained that the Bank of Ghana purchased gold using rates linked to the forex bureau market, while accounting for the transactions using the cedi reference rate, creating valuation differences.
The IMF also observed that survey evidence indicated that prices paid for artisanal and small-scale mining (ASGM) gold in Ghana were among the highest in the region, adding pressure to the cost of the programme.
However, the Fund clarified that some of the reported losses were accounting-related and reflected valuation effects rather than direct economic costs.
Despite this, it warned that the losses had weakened the Bank of Ghana’s balance sheet, affecting its financial position and contributing to its negative equity position.
The IMF report further indicated that additional losses arose from Gold-for-Reserves-related claims on the Bulk Oil Storage and Transportation Company Limited (BOST), some of which were written off during the year.
It noted that the Bank of Ghana’s negative equity position stood at 6.7 per cent of GDP at the end of 2025, highlighting continued pressure on the central bank’s financial strength.
The findings are expected to renew discussions around the cost, structure and sustainability of Ghana’s domestic gold purchasing strategy, particularly its role in strengthening foreign exchange reserves while maintaining the financial health of the central bank.
