The International Monetary Fund (IMF) has called on the Bank of Ghana (BoG) to permanently discontinue quasi-fiscal activities after the Domestic Gold Purchase Programme (DGPP) recorded losses of GH¢22 billion in 2025, placing further strain on the central bank’s financial position.
In its latest assessment of Ghana’s economy, the Fund said the losses from the programme amounted to about 1.5 percent of Gross Domestic Product (GDP) and contributed significantly to the deterioration of the Bank of Ghana’s balance sheet.
According to the IMF, the losses, together with other financial factors, increased the central bank’s negative equity position to 6.7 percent of GDP by the end of 2025.
The Fund stressed that preserving the independence and credibility of the Bank of Ghana would require the permanent cessation of quasi-fiscal operations and the complete transfer of the Domestic Gold Purchase Programme to the Ghana Gold Board (GoldBod).
The DGPP was introduced by the central bank to purchase gold from licensed small-scale miners to help build Ghana’s gold and foreign exchange reserves.
Although the initiative contributed to strengthening the country’s reserve position, the IMF noted that it also generated substantial financial costs for the central bank.
The Fund welcomed the decision by the Government, the Bank of Ghana and GoldBod to transfer responsibility for the programme to GoldBod under an agreement signed in July 2026.
Under the arrangement, GoldBod has assumed responsibility for purchasing gold and financing all operational costs associated with the programme, allowing the central bank to concentrate on its core responsibilities of monetary policy, price stability and financial system oversight.
The IMF said the transfer would remove future financial risks associated with the programme from the Bank of Ghana’s balance sheet while improving transparency and governance.
It also underscored the need to recapitalise the central bank, describing a strong financial position as essential for maintaining monetary policy credibility, safeguarding price stability and reinforcing confidence in Ghana’s economy.
The Fund noted that implementation of the Bank of Ghana’s recapitalisation plan should proceed alongside reforms aimed at strengthening institutional independence.
An independent audit of the Domestic Gold Purchase Programme is currently underway, with the findings expected later this year.
The IMF believes the audit will provide greater transparency over the programme’s financial performance and support ongoing efforts to strengthen governance and accountability at the central bank.
The recommendations form part of the Fund’s broader assessment of Ghana’s macroeconomic reforms following the successful completion of the country’s Extended Credit Facility (ECF) programme and the commencement of a new Policy Coordination Instrument (PCI), which is expected to anchor policy reforms and preserve macroeconomic stability.
Source: businesspostonline
