$1.7bn Losses, $11.9bn Reserves, $10.6bn Forex Intervention and 41% Cedi Boost
By Prince Ahenkorah
The International Monetary Fund (IMF) has assessed Ghana’s Domestic Gold Purchase Programme, revealing that while the Bank of Ghana incurred losses exceeding $1.7 billion, the initiative contributed to a rise in gross international reserves to $11.9 billion.
The report also noted that the central bank’s foreign exchange interventions increased significantly, with forex sales rising from $1 billion in 2023 to $10.6 billion in 2025, supporting a 41% nominal appreciation of the Cedi against the US dollar.
The IMF, revealed that the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) recorded losses exceeding $1.7 billion in 2025, even though the initiative played a major role in rebuilding Ghana’s foreign exchange reserves and supporting the stability of the Cedi.
According to the IMF’s 2026 Article IV Consultation and proposed Policy Coordination Instrument (PCI) report, the gold programme became the main driver of foreign exchange inflows and reserve accumulation for the central bank.
The Fund explained that the rapid expansion of the DGPP resulted in losses equivalent to 1.5% of Ghana’s Gross Domestic Product (GDP), with nearly all the losses linked to the purchase of doré gold under the Gold for Reserves (G4R) initiative.
“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.
The report attributed the losses to several factors, including service and assay fees paid to GoldBod, discounts applied to gold sold to foreign buyers, and exchange-rate differences between the forex bureau rates used in purchasing gold and the Cedi reference rates applied in the Bank of Ghana’s accounting processes.
The IMF noted that while some of the losses reflected accounting valuation effects rather than direct economic costs, they still weakened the central bank’s balance sheet and contributed to transfers to foreign exchange buyers who accessed forex at the official reference rate.
The Fund further indicated that the reported losses did not include the additional costs associated with sterilising the reserves accumulated through the programme. It added that the Bank of Ghana’s negative equity reached 6.7% of GDP at the end of 2025.
Despite the financial losses, the IMF acknowledged that the DGPP had been critical in improving Ghana’s external position and strengthening foreign exchange reserves.
The report stated that gold-related inflows increased significantly from $1.7 billion in 2023 to $12.7 billion in 2025, including $1.1 billion in net gains from bullion sales, largely driven by increased gold purchases from the artisanal and small-scale mining sector.
The IMF described the Domestic Gold Purchase Programme as operationally central to the sharp increase in Ghana’s gross international reserves since the beginning of the Extended Credit Facility-supported programme.
Ghana’s gross international reserves reached $11.9 billion by the end of 2025, representing about four months of import cover and exceeding the programme’s targets, according to the report.
The stronger reserve position also allowed the Bank of Ghana to increase its foreign exchange interventions, with forex sales rising from $1 billion in 2023 to $10.6 billion in 2025.
The IMF said the improved foreign exchange liquidity contributed to the appreciation of the Cedi, which recorded a 41% nominal appreciation against the US dollar during the period.