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The Bank of Ghana (BoG) has withdrawn from the Gold for Oil programme following significant financial losses recorded under the initiative.

The decision was made during a board meeting held on March 13, 2025, and comes after the central bank reported a staggering loss of GH¢41.82 billion from the programme for the financial year ending December 31, 2024.

This marks a sharp increase from the GH¢317 million loss recorded in the previous year.

According to the BoG’s financial report, as of December 31, 2024, the bank had committed GH¢4.69 billion in seed capital toward the programme.

A key component of the overall exchange losses was a GH¢1.82 billion shortfall, specifically attributed to the Gold for Oil initiative.

The programme, which aimed to use locally sourced gold to purchase oil in a bid to reduce pressure on the country’s foreign exchange reserves, was a central part of the government's strategy to stabilise fuel prices and ease forex demand.

The central bank’s exit signals a major shift in its policy direction amid rising concerns about fiscal sustainability.

It remains to be seen how the government will restructure or continue the Gold for Oil programme following the Bank of Ghana’s withdrawal.

SP/AE

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