Omanghana
The Bank of Ghana recorded more than $1.7 billion in losses linked to the expansion of its Domestic Gold Purchase Program in 2025, according to a new International Monetary Fund report.
The figure, equivalent to approximately 1.5% of Ghana’s gross domestic product, was disclosed in the IMF’s Ghana: Selected Issues report, Country Report No. 26/213, released in August 2026.
The IMF said the losses were almost entirely associated with purchases of doré gold under the Gold-for-Reserves program. They represented about 17% of the total value of doré gold sold by the central bank during the year.
The full-year figure is considerably higher than the previously reported $214 million loss on the artisanal and small-scale mining component of the program as of the end of September 2025. The two figures cover different reporting periods, meaning the $214 million disclosure was not a complete estimate of the program’s annual cost.
According to the IMF, the losses arose from several expenses and pricing arrangements. These included service and assay fees, discounts offered to off-takers and exporters, and exchange-rate differences between the forex bureau rates used to purchase gold and the official reference rate applied in the Bank of Ghana’s accounts.
The Fund also noted that prices paid for artisanal and small-scale gold in Ghana were among the highest in the region. This increased acquisition costs and reduced the financial value retained when the gold was sold internationally.
Some of the reported losses reflected accounting and valuation effects rather than direct economic costs. However, the IMF warned that they still weakened the central bank’s balance sheet and effectively transferred value to institutions or businesses that received foreign currency at the official reference rate.
Additional losses were connected to Gold-for-Reserves-related claims on the Bulk Oil Storage and Transportation Company, some of which were partly written off during the year.
The program’s expansion added further pressure to the Bank of Ghana’s already weak capital position. Its shareholders’ equity reportedly fell to negative GH¢93.8 billion by the end of 2025, equivalent to approximately 6.7% of GDP. The central bank’s financial difficulties also reflect earlier losses associated with Ghana’s domestic debt restructuring and other monetary operations.
Despite the cost, the gold program contributed to the rebuilding of Ghana’s international reserves and supported foreign-exchange liquidity during a period of economic instability. Increased gold holdings also helped strengthen confidence in the cedi and improve the country’s external buffers.
The findings have nevertheless raised questions about whether those gains could have been achieved at a significantly lower cost.
Government reforms are now intended to reduce the Bank of Ghana’s direct involvement in operational gold purchasing. GoldBod has been given a central role in aggregating, assaying, purchasing and exporting gold produced by the artisanal and small-scale sector.
Authorities are also seeking to reduce transaction costs, align domestic buying prices more closely with international spot prices and limit excessive margins within the trading chain.
Another major objective is curbing smuggling. Government estimates indicate that Ghana may have lost about $11.4 billion through illicit artisanal gold exports between 2019 and 2023. Stronger licensing, traceability and border enforcement are expected to help direct more gold and foreign-exchange proceeds through official channels.
The IMF’s findings do not suggest that domestic gold purchases produced no economic benefits. Instead, they highlight the need to balance reserve accumulation with transparent pricing, stronger governance and tighter control over operational expenses.
Future sustainability will depend on whether GoldBod and the Bank of Ghana can preserve the program’s reserve-building benefits while preventing another accumulation of large financial losses.
Source: Omanghana
