Ghana's Gold Programme: GH¢9bn Losses, But a Strategic Win?
The Bank of Ghana's bold gold-for-reserves and gold-for-oil programmes cost the central bank GH¢9.05 billion in 2025, but a leading economic analyst argues the real story is not the loss, it's the strategic gain. Kwabena Nyantakyi, in a detailed technical analysis, says the programmes delivered major wins for the cedi, reserves, and inflation, even as the IMF flags operational losses of over US$1.7 billion.
What drove the gold programme losses?
Nyantakyi, a respected economic policy analyst, points to the audited financial statements of the Bank of Ghana (BoG). They show a loss of GH¢8.84 billion from the Gold for Reserves programme and GH¢203.034 million from the Gold for Oil programme. But he cautions against double-counting. The IMF's August 2026 estimate of more than US$1.7 billion in operational losses is a different measure, equivalent to about 1.5% of Ghana's GDP and 17% of the value of doré transactions.
So, what went wrong? Not gold prices, which hit record highs in 2025, rising about 41%. The culprit, according to the IMF, was the exchange-rate spread. Gold was bought using a cedi rate linked to forex bureau rates but sold at the BoG's lower reference rate. Add in fees and discounts to off-takers, and you have a recipe for losses.
Beyond the losses: the strategic wins
Despite the red ink, Nyantakyi says the programme was a strategic success. The BoG purchased and exported about 104 tonnes of artisanal and small-scale gold, worth US$10.9 billion in 2025. It then sold about US$10.6 billion into the foreign exchange market. That influx of dollars helped rebuild Ghana's international reserves, supported the cedi's appreciation, and eased inflationary pressures.
Formalising gold purchases also narrowed the gap between Ghana's recorded exports and what destination countries report importing. A stronger cedi eased pressure on the energy sector, where many Independent Power Producer obligations are dollar-denominated.
But Nyantakyi is quick to warn: don't credit the gold programme alone for Ghana's economic stability. Fiscal consolidation, monetary tightening, debt restructuring, and high global commodity prices all played their part.
What are the hidden costs of the gold programme?
The official loss figures don't tell the whole story. Nyantakyi highlights environmental degradation from illegal mining (galamsey) and an estimated GH¢2 billion in forgone revenue after the abolition of the 1.5% withholding tax on small-scale gold. There's also a concentration risk: one aggregator accounted for more than 60% of artisanal gold exports in 2025.
What reforms does the analyst recommend?
Nyantakyi wants to see a more sustainable and transparent programme. His recommendations include a single market-consistent exchange-rate rule, transparent doré tenders, publicly stated reserve adequacy targets, and clear risk limits for GoldBod, the new authority set up under the Ghana Gold Board Act, 2025 (Act 1140). He also proposes a quarterly public dashboard showing gold volumes, prices, fees, counterparties, and forex proceeds.
His vision: use Ghana's gold wealth to finance environmental restoration and diversify the economy into sectors that create sustainable jobs. That's a future worth investing in.
Frequently asked questions about Ghana's gold programme
Why did the Bank of Ghana lose money on gold?
The losses came mainly from an exchange-rate spread. Gold was purchased at a cedi rate linked to forex bureau rates but sold at the BoG's lower reference rate, plus fees and discounts to off-takers.
Did the gold programme help Ghana's economy?
Yes, despite the losses. It helped rebuild reserves, supported the cedi, eased inflation, and narrowed the export-import data gap. The analyst stresses it wasn't the only factor.
What is GoldBod's role in the gold programme?
Under Act 1140, GoldBod is the sole authority for purchasing, selling, and exporting gold outside the large-scale mining sector. It took over the assets of the Precious Minerals Marketing Company, but not the BoG's historical losses or reserve management mandate.