Omanghana
An International Monetary Fund assessment of Ghana’s Domestic Gold Purchase Program has renewed debate about transparency, financial accountability and the relationship between the Bank of Ghana and the Ghana Gold Board.
Economists from the Institute for Economic Research and Public Policy have called for greater scrutiny of the program, arguing that the financial risks identified by the IMF require urgent regulatory and parliamentary attention.
The IMF’s 2026 Article IV consultation and sixth review of Ghana’s Extended Credit Facility program raised concerns about losses associated with the Domestic Gold Purchase Program.
The fund said the losses demonstrate the importance of improving transparency and limiting quasi-fiscal activities that could weaken the Bank of Ghana’s balance sheet.
The debate has largely focused on a reported $1.7 billion in under recoveries associated with the program in 2025, estimated at approximately 1.5% of Ghana’s gross domestic product.
However, there is disagreement over whether the amount should be described as a loss incurred by GoldBod.
GoldBod maintains that the figure relates to quasi-fiscal expenditure recorded on the Bank of Ghana’s balance sheet and not an operational deficit on its own books.
The board says it operates mainly as an aggregator and assayer within the gold-purchasing framework and is not the balance-sheet principal responsible for the disputed amount.
Critics argue that the institutional distinction does not eliminate the need for accountability. They maintain that GoldBod’s role in aggregating, assaying and facilitating gold transactions makes scrutiny of the entire operational chain necessary.
The IERPP analysis raised questions about the pricing mechanisms used to purchase gold, transaction costs, discounts granted to off-takers and the exchange rates applied when the transactions are recorded.
According to the institute, unexpected shortfalls during a period of historically high global gold prices warrant a detailed examination of the program’s commercial and risk-management arrangements.
Economists have also warned about the fiscal consequences of losses linked to state-supported commodity operations.
When such costs accumulate on the central bank’s balance sheet, they can become quasi-fiscal liabilities that may ultimately require public resources to resolve.
This could weaken Ghana’s fiscal consolidation efforts and complicate commitments made under its IMF-supported economic program.
The IMF has urged Ghana to discontinue quasi-fiscal activities, strengthen the Bank of Ghana’s independence and protect the central bank’s balance sheet from further risks.
It has also supported the transfer of the Domestic Gold Purchase Program to GoldBod as part of measures to reduce the central bank’s direct involvement in commodity trading and foreign exchange intermediation.
Transparency within the artisanal and small-scale gold sector remains another major concern.
Gold smuggling and unrecorded exports have historically deprived Ghana of substantial foreign exchange and public revenue. GoldBod was established partly to centralize purchases, improve traceability and ensure that export proceeds return through the formal banking system.
The board has reported significant growth in officially recorded gold exports since its establishment. It argues that its operations have helped mobilize billions of dollars in foreign exchange, strengthen international reserves and support the stability of the cedi.
IERPP economists, however, maintain that those achievements should not prevent an independent examination of the program’s costs.
They have called for a comprehensive audit covering procurement agreements, assay procedures, service fees, off-taker contracts, pricing formulas, foreign exchange conversions and risk-management strategies.
Such an investigation could establish how the reported under recoveries were generated and determine which institution carried responsibility at each stage of the transactions.
It could also clarify whether the costs represented avoidable trading losses, deliberate policy expenditure associated with reserve accumulation or a combination of both.
The controversy has broader implications for Ghana’s relationship with the IMF and other development partners.
Under the Extended Credit Facility arrangement, the government committed to improving fiscal-risk management, strengthening the oversight of state-owned entities and increasing transparency in public financial operations.
The IMF completed the sixth review of Ghana’s program in July 2026, allowing the final disbursement of approximately $371 million and bringing total disbursements under the arrangement to about $3 billion.
Although Ghana has recorded stronger growth, lower inflation and improved international reserves, the fund maintains that weaknesses in public financial management and quasi-fiscal operations must be addressed to preserve the recovery.
Resolving the GoldBod controversy will therefore require clear institutional accounting and disclosure of the program’s full financial structure.
An independent review could help separate the operational performance of GoldBod from the policy costs carried by the Bank of Ghana while providing the public with a clearer account of how national gold resources are being managed.
The IMF’s official findings are contained in its 2026 Article IV consultation and sixth programme review for Ghana.
Source: Omanghana
