The Bank of Ghana (BoG) recorded an estimated $1.7 billion loss from its Domestic Gold Purchase Programme in 2025, according to the latest International Monetary Fund (IMF) Country Report No. 26/213 prepared for Ghana’s 2026 Article IV Consultation.
The IMF report indicates that the previously reported $214 million loss represented only a small portion of the total financial impact of the central bank’s gold acquisition programme, which was implemented through GoldBod.
According to the report, the significant expansion of the Domestic Gold Purchase Programme in 2025 resulted in losses exceeding US$1.7 billion, representing approximately 1.5 percent of Ghana’s Gross Domestic Product (GDP). The IMF noted that the losses were largely linked to Gold-for-Reserves (G4R) doré gold purchases, accounting for nearly 17 percent of the total value of doré gold sold by the Bank of Ghana.
The report explained that the financial losses were driven by several factors, including service charges and assay fees paid to GoldBod, discounts granted on gold sales to exporters and off-takers, and foreign exchange losses caused by the difference between the forex bureau exchange rate used to purchase gold and the official cedi reference rate applied in the BoG’s accounting system.
The IMF also highlighted that available survey data suggests gold prices paid to Ghana’s Artisanal and Small-Scale Gold Mining (ASGM) sector are among the highest in the region, contributing to the increased cost of the programme.
While the IMF acknowledged that part of the reported losses resulted from accounting valuation adjustments rather than direct economic costs, it stressed that the losses have significantly weakened the Bank of Ghana’s financial position.
The report further explained that the accounting treatment reflects transfers involving foreign exchange reserves, including transactions where the BoG accumulated reserves or sold foreign exchange using the official reference rate.
In addition, the IMF disclosed that further financial losses were recorded through Gold-for-Reserves-related claims involving the Bulk Oil Storage and Transportation Company (BOST), with part of those claims written off during the year.
As a result of these developments, the IMF report stated that the Bank of Ghana’s negative equity reached 6.7 percent of GDP by the end of 2025, raising concerns about the central bank’s balance sheet and long-term financial stability.
The findings are expected to influence ongoing discussions on Ghana’s economy, monetary policy, gold reserves management, foreign exchange strategy, and financial sector reforms as the country continues its engagement with the IMF.
Source: newsthemegh.com