The Institute for Energy Policies and Research (INSTEPR) has called on the Bank of Ghana (BoG) to urgently reform its gold purchase operations by engaging institutions with proven expertise in commodity trading.
The policy institute warned that without professional trading structures and stronger risk management, losses under the Gold for Reserves programme are likely to persist.
In its statement, INSTEPR stressed that basic principles of commodity trading require that gold sold by the central bank should not result in losses. According to the think tank, any well-structured trading programme should aim to break even at a minimum.
“Standard business practice suggests that when the Bank of Ghana sells the gold procured through GoldBod, it should generate more revenue than was paid to GoldBod or at least break even.”
Institute for Energy Policies and Research (INSTEPR)
It argued that repeated losses indicate deeper problems in pricing, execution and risk controls, adding that these issues undermine the policy’s objective of strengthening Ghana’s foreign reserves.
INSTEPR’s call follows reports that the central bank incurred losses of about US$214 million, equivalent to roughly GH¢2.4 billion, from gold transactions conducted with GoldBod under the flagship policy.
Reacting to the figures, the institute argued that the losses point to fundamental operational weaknesses rather than isolated market shocks.
INSTEPR also took issue with what it described as politically motivated commentary surrounding the gold purchase programme. It said some civil society groups and government appointees had shifted attention away from the structural drivers of the losses.
“We have repeatedly raised alarms on various media platforms, warning that the challenges were not related to BOST or the oil transactions, and that losses would recur in 2025, but our concerns fell on deaf ears.”
Institute for Energy Policies and Research (INSTEPR)
Call for Central Bank Independence
Beyond operational reforms, INSTEPR emphasised the importance of protecting the independence of the Bank of Ghana. It argued that political pressure could compromise sound decision-making and expose the currency and banking system to unnecessary risks.
“While the gold purchase programme is a commendable initiative, proper modalities must be established to prevent the losses associated with gold trading.”
Institute for Energy Policies and Research (INSTEPR)
Addressing public debate around the financial performance of state institutions involved in the programme, INSTEPR clarified that profitability at GoldBod does not negate losses recorded by the central bank.
Citing the 2025 State Interests and Governance Authority (SIGA) State Ownership Report, the institute noted that while the BoG posted a GH¢2.1 billion loss in 2024 from the gold purchase and Gold for Oil programmes, other entities reported profits.
Precious Minerals Marketing Company (PMMC)/GoldBod recorded a net profit of GH¢124.65 million, while the Bulk Oil Storage and Transportation Company (BOST) posted GH¢318 million in net profit.
“GoldBod does not have operational funds; it earns a commission based on the Bank’s money, thus assuming no financial risk,” INSTEPR explained. It added that GoldBod making a profit “does not mean the Bank of Ghana is not making losses.”
The institute also cautioned against interpreting the 2024 losses as evidence of corruption or opacity, insisting that the problem lies in the programme’s structure rather than misconduct.
Structural Weaknesses in Gold Procurement
INSTEPR further outlined inherent flaws in the gold procurement framework that continue to expose the BoG to losses. Under the current system, the Bank provides funds to GoldBod, which then purchases gold through registered agents rather than directly from small-scale miners.
These miners, the institute explained, price gold using international dollar benchmarks converted into cedis at exchange rates they consider acceptable, often differing from the BoG’s official rate.
After negotiations and discounts, agents add their margins and processing costs to produce dore bars, the only form of gold GoldBod purchases.
“All associated costs, including commissions paid to GoldBod, are funded by the Bank of Ghana,” INSTEPR said, warning that without reforms, these arrangements will continue to generate losses.
The institute concluded that stronger pricing mechanisms, professional trading expertise and improved risk management are critical if the gold purchase programme is to achieve its intended economic benefits.
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