The GH¢21.89 billion loss recorded under the Domestic Gold Purchase Programme (DGPP) in 2025 represents an accounting adjustment rather than a direct cash expense, according to persons familiar with the programme and the Bank of Ghana (BoG).
JoyBusiness understands that the adjustment largely arose from the difference between the exchange rate used to acquire gold from miners and the official rate at which the gold was recorded in the Bank’s books. The exchange-rate gap accounted for approximately 87% of the total gross programme cost.
The figure was published by the Bank of Ghana alongside a reconciliation showing how the GH¢21.89 billion charge resulted in a net cost of GH¢9.05 billion recognised in the Bank’s accounts.
Understanding the accounting mechanics
Sources explained that gold is acquired from miners at prevailing market rates. The same gold is then recorded in the Bank’s books at the official Bank of Ghana rate. The difference between the two rates creates the accounting adjustment.
This distinction is crucial. An accounting adjustment can affect reported financial results without representing a corresponding cash payment, as explained in the Bank’s own published materials on its 2025 financial results. The Bank has confirmed that the operating loss was driven by the exchange-rate differential between the prevailing gold market rate used to purchase artisanal and small-scale gold, and the interbank exchange rate at which the purchase is recorded.
Why gold is bought at the market rate
Sources say buying gold below the prevailing market price would not necessarily reduce the cost to the state. “It rather displaces the gold into informal channels,” they explained.
The sources said artisanal and small-scale gold is acquired in a competitive market, where the main competing purchaser is the smuggler. This competitive pricing strategy has been deliberate, with analysts noting that GoldBod operates as both a monopoly buyer and seller in the arrangement, yet must still offer competitive rates to prevent gold from being diverted to foreign markets.
They also linked the decision to the need to keep gold within the formal economy. This is particularly significant given that official artisanal and small-scale gold exports declined by 91% within a year following the introduction of a 3% withholding tax in 2021. The strategy has proven effective in curbing smuggling, with official ASM exports rising from 63.6 metric tons in 2024 to 101 metric tons in 2025.
The DGPP generated US$13.8 billion in reserves from domestic gold production rather than external borrowing, contributing to a strengthening of Ghana’s external position that saw gross international reserves climb from $10.30 billion in March 2025 to $13.83 billion by December, raising import cover from 4.5 months to 5.7 months.
Why the adjustment increased in 2025
The framework for the programme remained unchanged, but two factors increased the size of the accounting adjustment in 2025.
First, the cedi appreciated by approximately 40.7% during the year — its first annual gain in 32 years — which widened the difference between the market acquisition rate and the official recording rate. The currency’s remarkable performance, driven by gold-backed inflows and successful debt restructuring, saw the cedi strengthen from approximately GH¢15.75 to the dollar at the start of the year to around GH¢10.80 by year-end.
At the same time, the programme nearly doubled in volume. Gold acquired under the programme increased from 56.47 tonnes in 2024 to 110.99 tonnes in 2025, with a value of US$11.4 billion. This represents an increase of more than 96% in the volume of gold purchased in just one year.
The exchange-rate divergence averaged below 5% in 2024 but rose to approximately 12% in 2025, with a considerably wider gap in the second half of the year.
Why BoG recognised GH¢9.05bn
The GH¢21.89 billion represents the gross programme cost. From that amount, GH¢5 billion represents the government’s cost share, which was borne by government and therefore does not constitute a Bank of Ghana charge.
A further GH¢7.9 billion in realised gains from gold bullion sales was also deducted. The resulting GH¢9.05 billion represents the net cost borne by the Bank of Ghana and is the amount recognised in its profit and loss account.
Sources therefore stressed that both figures are accurate. The GH¢21.89 billion is the gross programme cost, while the GH¢9.05 billion is the Bank’s net share of that cost. The financial dynamics have also created apparent contradictions, with GoldBod recording a GH¢5.4 billion surplus on its own operations while the central bank absorbed the exchange-rate differences and other costs elsewhere in its accounts.
They also said the transaction charges and exchange-rate gap are being addressed through structural reforms, including the transition to the Gold for Reserve Programme (G4R) framework which is expected to reduce the cost of reserve accumulation over time.
IMF did not independently discover figure
Sources further clarified that the GH¢21.89 billion figure published by the International Monetary Fund did not originate from an independent IMF calculation. The figure was provided by the Bank of Ghana during the preparation and auditing of its 2025 accounts and was subsequently shared with the Fund as part of programme reporting.
The same GH¢21.89 billion figure also appears in the Bank’s public education materials issued alongside its 2025 financial results, together with the reconciliation to GH¢9.05 billion.
The sources said that the figure published by the IMF and the one published by the Bank are therefore the same figure, expressed in different currencies. The IMF’s 2026 Article IV Consultation report quantified the losses at over $1.7 billion, equivalent to 1.5% of GDP, attributing them to service and assay fees paid to GoldBod, discounts on gold sold to off-takers, and exchange-rate losses.
Broader economic context and policy implications
Despite the financial cost, the IMF acknowledged that the programme played an “operationally central” role in Ghana’s economic recovery, noting that gold-related inflows rose sharply from $1.7 billion in 2023 to $12.7 billion in 2025, including $1.1 billion in net gains from bullion sales.
The stronger reserve position enabled the Bank of Ghana to scale up foreign exchange sales from $1 billion in 2023 to $10.6 billion in 2025, improving market liquidity and supporting the cedi’s historic appreciation. The programme also coincided with a marked improvement in Ghana’s external accounts, with total exports reaching $31.25 billion in 2025, driven largely by gold exports of $20.98 billion.
However, the losses have sparked public debate about accountability. Civil society organisations have demanded full disclosure of the programme’s costs and beneficiaries, with the People’s Alliance for Governance and Accountability insisting that “whether it appears in the accounts of GoldBod, the Bank of Ghana or another state institution, it remains a loss to Ghana”.
The controversy has also drawn academic scrutiny, with some economists arguing that the true cost of the programme remains understated unless the government accounts for the full value chain, including environmental damage associated with gold mining. Professor Godfred Bokpin of the University of Ghana Business School has argued that “when the full value chain is considered, the losses actually exceed the reported figures”.
Institutional reform
The experience has reshaped Ghana’s approach to reserve management. Rather than abandoning domestic gold purchases, policymakers have chosen to separate reserve accumulation from commercial gold trading, allowing the central bank to focus on monetary policy while the Ghana Gold Board assumes the operational and commercial risks associated with buying and selling gold.
The transfer of domestic gold purchases to GoldBod marks the biggest change to Ghana’s reserve accumulation strategy since the programme began. While the Bank of Ghana steps back from commercial gold trading, the objective of using domestic gold to strengthen the country’s external reserve position remains unchanged.
