IMF Flags GH¢22 Billion Loss in Ghana's Gold Programme as Government Defends Policy

Ghana's ambitious gold-buying programme, once celebrated as a key tool in stabilising the cedi, is facing renewed scrutiny after the International Monetary Fund (IMF) reported that it generated losses of more than US$1.7 billion (about GH¢22 billion) in 2025.

The figures, contained in the IMF's latest assessment of Ghana's economy, have reignited debate over whether the policy delivered enough economic benefits to justify its enormous cost. While critics argue the programme has weakened the Bank of Ghana's finances, government officials insist it played a critical role in restoring confidence in the economy.

The Domestic Gold Purchase Programme (DGPP) was introduced to increase Ghana's gold reserves, reduce pressure on the country's foreign exchange market and support the cedi by purchasing gold from local miners. But according to the IMF, the strategy came at a steep financial price.

The Fund said the programme contributed to losses equivalent to around 1.5% of Ghana's Gross Domestic Product, pushing the Bank of Ghana's negative equity position to 6.7% of GDP by the end of 2025.

A significant share of those losses resulted from the central bank buying gold at higher foreign exchange bureau rates, increasing the overall cost of the programme.

The latest assessment is a sharp revision from earlier IMF estimates. Last year, the Fund projected losses of about US$214 million for the first nine months of 2025, a figure the Bank of Ghana disputed. However, once the central bank completed its annual accounts, the total loss on doré gold transactions with GoldBod climbed to approximately GH¢22 billion.

Not everyone believes those losses tell the full story.

Sagnarigu MP Attah Issah has defended the programme, arguing that its success should be measured by its wider economic impact rather than its accounting losses.

According to him, the initiative helped rebuild Ghana's foreign exchange reserves, strengthened the cedi and contributed to inflation falling from around 54% to roughly 5%. He also argued that paying competitive exchange rates discouraged gold smuggling by encouraging miners to sell through official channels.

The opposition remains unconvinced.

Kojo Oppong Nkrumah, Ranking Member on Parliament's Economy Committee, has called on the Bank of Ghana to disclose the full financial cost of the programme, saying Parliament and the public deserve greater transparency about how much support the central bank provided.

The controversy has already triggered major policy changes.

As part of Ghana's US$3 billion IMF Extended Credit Facility programme, the government has agreed to remove the Bank of Ghana from the gold-buying business altogether. Responsibility for financing, purchasing, assaying and exporting artisanal gold has now been transferred to the Ghana Gold Board (GoldBod), with the government assuming all operational costs from 1 July 2026.

The IMF welcomed the move, saying it would shield the central bank from further financial risks and improve transparency by moving programme costs onto the national budget. However, it cautioned that government involvement in gold purchasing still carries fiscal risks and urged authorities to maintain strict spending discipline.

The losses from the DGPP, combined with exchange-rate valuation losses and higher monetary policy costs, have significantly weakened the Bank of Ghana's balance sheet. Authorities have pledged to fully recapitalise the central bank by 2032, a commitment the IMF considers essential to restoring its financial independence.

Meanwhile, an independent audit covering the programme from its inception is expected later this year. The findings could provide the clearest picture yet of whether one of Ghana's most ambitious economic interventions ultimately strengthened the country's finances—or became one of its costliest policy experiments.

For now, the debate continues. Gold remains one of Ghana's most important exports, with artisanal and small-scale shipments generating US$10.9 billion in 2025. Yet the industry continues to battle illegal mining, environmental degradation, smuggling and limited tax revenues, highlighting the difficult balance policymakers face between protecting the economy and managing one of the country's most valuable natural resources.