Omanghana
Policy think tank Africa Policy Lens has called for an immediate forensic investigation into the Ghana Gold Board following disclosures of more than $1.7 billion in losses linked to the government’s Domestic Gold Purchase Program.
The losses were reportedly detailed in an International Monetary Fund report released in August 2026 and relate to gold trading activities undertaken during 2025.
Although the deficits were recorded on the books of the Bank of Ghana, APL argued that GOLDBOD’s statutory position as Ghana’s sole authorized gold trader makes an extensive review of its operations necessary.
The organization wants investigators to examine the board’s gold-sourcing arrangements, payments to aggregators, pricing formulas, assay fees and agreements with off-takers.
Losses Represented About 17% of Gold Traded
According to APL’s assessment of the IMF report, the $1.7 billion deficit represented approximately 17% of the total value of gold traded under the program in 2025.
The think tank attributed the losses to foreign exchange differences, fees paid to GOLDBOD and commercial discounts granted to selected off-takers and exporters.
APL said the scale of the reported shortfall raised questions about whether the current trading structure provides value for money and adequately protects public resources.
Foreign Exchange Spreads Identified as Major Cost
The largest portion of the reported losses was attributed to differences between the exchange rates used to purchase gold doré and the rates applied when the transactions were recorded by the central bank.
Gold was reportedly purchased using prevailing forex bureau rates, while the Bank of Ghana accounted for the transactions using its official cedi reference rate.
Where the forex bureau rate was significantly higher than the central bank’s reference rate, the difference created an accounting and trading loss.
APL said the arrangement exposed the program to substantial foreign exchange costs and required greater clarity regarding how purchase rates were determined.
The think tank also questioned whether sufficient safeguards had been introduced to manage the risks created by exchange-rate volatility.
Fees and Off-Taker Discounts Under Scrutiny
APL identified sourcing, service and assay charges paid to GOLDBOD as another contributor to the deficit.
It called for full disclosure of the services covered by the fees, the method used to calculate them and whether the government received adequate value in return.
Commercial discounts offered to particular off-takers and exporters were also cited as a source of losses.
The organization wants the identities of the beneficiaries, the size of each discount and the commercial reasons supporting the arrangements to be disclosed.
APL argued that transparency was necessary to determine whether the concessions were consistent with market conditions and applied fairly across transactions.
APL Questions Ghana’s Gold Trading Costs
The policy think tank estimated Ghana’s net acquisition and trading cost at approximately 14.5%.
It contrasted that figure with an illustrative 1.87% benchmark derived from Ecuador’s artisanal gold model and referenced by the World Gold Council.
APL maintained that the wide difference indicated the need for a detailed value-for-money assessment. It said the comparison should be used to examine the efficiency of Ghana’s model, although differences between national markets, regulatory systems and supply chains may affect direct comparisons.
Think Tank Proposes Five Reforms
APL submitted five main proposals aimed at reducing further financial exposure under the Domestic Gold Purchase Program.
First, it called for a forensic audit of GOLDBOD’s entire pricing system. The exercise should examine purchase rates, aggregator payments, premiums, fees and other costs associated with obtaining and selling gold.
Second, the organization proposed an independent oversight body to monitor prices, transaction volumes and payments. It said external supervision would improve reconciliation and reduce the possibility of institutional conflicts of interest.
Third, APL demanded the publication of all off-taker and export contracts. The disclosures should include discount rates, pricing terms and the commercial justification for each agreement.
Fourth, the think tank recommended reconsidering GOLDBOD’s combined regulatory and commercial responsibilities. It proposed that the board should concentrate primarily on industry regulation while licensed private entities handle commercial trading and assume the related market risks.
Finally, APL called for the clear separation of gold purchased for Ghana’s long-term strategic reserves from gold acquired to provide short-term foreign exchange liquidity.
Strategic Reserves and Liquidity Operations Should Be Separated
APL argued that gold purchased for strategic national reserves serves a different purpose from gold acquired for immediate resale or foreign exchange generation.
Strategic reserves are generally held to strengthen a country’s financial position over the long term. Liquidity transactions, however, are more exposed to short-term pricing, exchange-rate and trading risks.
The think tank therefore wants the funding, management and accounting systems for the two operations to be ring-fenced.
According to APL, separating the mandates would make it easier to measure performance, identify losses and assign responsibility for trading decisions.
Calls Grow for Greater Transparency
The Domestic Gold Purchase Program was introduced to increase Ghana’s gold reserves, support foreign exchange availability and reduce pressure on the cedi.
However, the reported $1.7 billion deficit has intensified scrutiny of the costs associated with purchasing and trading gold through state institutions.
APL said a forensic investigation would help establish the causes of the losses, determine whether the transactions provided value for money and identify reforms needed to prevent further fiscal exposure.
The think tank maintained that transparent contracts, independent supervision and a clearer separation of regulatory and commercial functions would be essential to protecting public funds as the program continues in 2026 and beyond.
Source: Omanghana
