The International Monetary Fund (IMF) has suggested that Ghana record the losses experienced through its Gold for Reserves (G4R) program on the Budget’s balance sheet rather than having the Bank of Ghana (BoG) bear such costs.
“We strongly recommend that the losses should be brought on the national balance sheet rather than being held on the balance sheet of the Central Bank,” Julie Kozack, Director of the IMF’s Communications Department, said on Thursday.
During a monitored news briefing, she emphasised the importance of transparency, governance, and risk management, particularly for the Gold Board (GoldBod)-linked channel under the domestic gold purchase scheme.
The artisanal and small-scale (ASM) doré gold transactions component of the Gold for Reserves programs, which includes trading operations, fees, and exchange rate fluctuations, resulted in US$214 million in losses for the nation through the end of the third quarter, according to the IMF.
Concerns have been raised by this, and the government has covered the program’s expenditures while the governor of the central bank has called for a national response to rectify the losses and increase efficiency.
According to Ms. Kozack, “it’s important to ensure that the Bank of Ghana remains well-positioned to deliver on its key price stability mandates,” which is why the losses were included in the national budget balance sheet.
“So, it’s about moving something that is quasi-fiscal onto the budget balance sheet. So, it’s transparent and ensures that the Bank of Ghana is able to deliver on its mandate,” she said.
The G4R program helped build up international reserves and lessen pressure on the foreign exchange market “during a difficult period for Ghana,” according to the IMF Staff Report for the nation’s Fifth Review, she said.
Regarding the effectiveness of the nation’s current US$3 billion loan-supported initiative, Ms. Kozack stated that the Board authorised a three-month extension to give enough time to finish the final review.
An evaluation of data for the end of 2025 and the end of the first quarter of 2026 was part of that.
The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, stated that the G4R program was still applicable to the nation during his appearance before the Public Accounts Committee (PAC) of Parliament on Monday.
The scheme was introduced to address issues facing the country. He added that the Bank had already lowered some fees and was working on more reforms. “The question now is how to reform it and make it more efficient,” he said.
“The Gold for Reserves programme is still relevant. Its objective is to build reserves. Evidence shows that it is not a matter of shutting it down but rather enhancing efficiency and removing inefficiencies,” he stated.
Source: newsthemegh.com