Ghana’s ambitious gold purchase strategy has come under fresh scrutiny after the International Monetary Fund (IMF) revealed that the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) generated losses exceeding $1.7 billion in 2025, even as it played a decisive role in rebuilding the country’s foreign exchange reserves and supporting the remarkable appreciation of the Cedi.
The findings, contained in the IMF’s 2026 Article IV Consultation and proposed Policy Coordination Instrument (PCI) report, paint a picture of a programme that delivered major macroeconomic gains but came at a significant financial cost to the central bank.
Gold strategy came with a hefty price
According to the IMF, the rapid expansion of the Domestic Gold Purchase Programme resulted in losses equivalent to 1.5 percent of Ghana’s Gross Domestic Product (GDP). The Fund explained that nearly all of the losses were linked to the Bank of Ghana’s Gold for Reserves initiative, which involved purchasing doré gold from local suppliers before refining and selling it internationally.
“The significant scaling up of DGPP operations led to losses of over $1.7 billion (1.5% of GDP), almost entirely related to G4R doré purchases; this amounted to a loss of 17% of the value of doré gold sold by the BoG,” the IMF stated in its report.
The revelation is likely to spark debate over whether the financial sacrifices made under the programme were justified by the broader economic benefits that followed.
Why did the programme lose so much money?
The IMF attributed the massive losses to several operational and financial factors.
Among the key drivers were service and assay fees paid to GoldBod, discounts offered to international off-takers purchasing the refined gold, and foreign exchange losses arising from differences between the forex bureau exchange rate used to buy gold and the official Cedi reference rate applied in the Bank of Ghana’s accounting records.
The Fund noted that some of these losses reflected accounting valuation effects rather than direct economic losses. However, it stressed that they still weakened the central bank’s financial position and effectively transferred value to buyers who obtained foreign exchange at the official reference rate.
The report also clarified that the estimated losses did not include the cost of sterilising the liquidity created through the reserve accumulation programme, suggesting that the overall financial burden could be even higher.
Negative equity remains a major concern
One of the most striking disclosures in the report is the continued deterioration of the Bank of Ghana’s balance sheet.
According to the IMF, the central bank’s negative equity stood at 6.7 percent of GDP by the end of 2025.
Negative equity means that the Bank’s liabilities exceed its assets, a situation that has remained a major issue following losses incurred during previous financial sector interventions and domestic debt restructuring.
Although central banks can continue operating with negative equity under certain conditions, prolonged financial weakness could eventually require recapitalisation measures to strengthen confidence and ensure long-term financial stability.
Gold programme transformed Ghana’s reserves
Despite the enormous losses, the IMF acknowledged that the Domestic Gold Purchase Programme delivered extraordinary gains in Ghana’s external sector.
The report described the programme as “operationally central” to the country’s reserve accumulation efforts under the IMF-supported Extended Credit Facility programme.
Gold-related foreign exchange inflows surged dramatically from $1.7 billion in 2023 to $12.7 billion in 2025, representing one of the fastest increases recorded in recent years.
The Fund disclosed that these inflows included $1.1 billion in net gains from bullion sales, driven largely by increased gold purchases from Ghana’s expanding artisanal and small-scale mining sector.
The rapid growth in gold acquisitions enabled Ghana to build one of its strongest external reserve positions in years.
Stronger reserves helped power the Cedi
The strengthening of Ghana’s international reserves had far-reaching effects on the foreign exchange market.
According to the IMF, gross international reserves increased eightfold since the beginning of the Extended Credit Facility programme, reaching $11.9 billion by the end of 2025.
This level represented approximately four months of import cover and comfortably exceeded the performance targets agreed under the IMF programme.
With stronger reserves available, the Bank of Ghana significantly increased its foreign exchange interventions in the market.
Foreign exchange sales rose from $1 billion in 2023 to $10.6 billion in 2025, greatly improving market liquidity and easing pressure on the supply of dollars.
The IMF noted that these interventions coincided with a remarkable 41 percent nominal appreciation of the Cedi against the US dollar, making Ghana’s currency one of the strongest performing currencies during the period.
The stronger currency also helped reduce imported inflation, supported business confidence and contributed to broader macroeconomic stability.
Balancing costs against economic gains
The IMF’s latest assessment presents policymakers with a complex question.
On one hand, the Domestic Gold Purchase Programme imposed substantial financial costs on the Bank of Ghana and further weakened its balance sheet. On the other hand, it significantly strengthened Ghana’s external position, restored investor confidence, boosted foreign exchange reserves and supported one of the Cedi’s strongest performances in recent history.
As Ghana prepares to implement reforms under the proposed Policy Coordination Instrument, the challenge will be finding ways to preserve the benefits of the gold purchase programme while reducing the financial losses associated with its operations.
Future reforms could focus on improving pricing mechanisms, reducing operational costs and strengthening accounting practices to ensure that reserve accumulation does not come at such a heavy financial price.
Ghana’s gold strategy helped rescue the country’s external reserves and stabilise the Cedi, but it also left behind a billion-dollar bill that policymakers cannot afford to ignore.
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