The Institute of Economic Affairs (IEA) has rejected the attribution of a US$1.7 billion loss under the Bank of Ghana’s Domestic Gold Purchase Programme to the Ghana Gold Board (GoldBod).
The Institute said much of the figure represents revenue and foreign-exchange valuation differences rather than an actual loss to the institution.
Professor Alexander Bilson Darku, the Director of Research at the IEA, who rejected the claim, said the reported amount comprised service fees, assaying fees and foreign-exchange valuation differences arising from the GoldBod’s purchasing and export operations.
He explained that the service and assaying fees were payments made by the Bank of Ghana (BoG) to GoldBod for services rendered on behalf of the Central Bank and, therefore, constituted revenue to GoldBod.
“I don’t understand why somebody would call revenue a loss,” Prof. Darku said at the IEA’s assessment of the 2026 mid-year budget review on Wednesday, on the theme: “From Stabilisation to Transformation: An Assessment of Ghana’s 2026 Mid-Year Budget Review.”
Prof. Darku noted that the largest component of the reported US$1.7 billion figure, accounting for about 90 per cent, was primarily an exchange-rate valuation issue.
He explained that GoldBod purchased gold on behalf of the BoG, with the proceeds subsequently converted from US dollars into cedis using the Central Bank’s applicable reference exchange rate.
Differences between the exchange rate used at the point of purchase and the rate used to value the proceeds could consequently appear as a loss in the BoG’s books, although that did not necessarily represent a depletion of national wealth.
“It is merely a book accounting issue, and not a significant loss to the nation,” he said.
The IEA Director of Research said the transactions involving the two public institutions should also be viewed from a broader government perspective, since a cost recorded by one institution could simultaneously constitute revenue for another.
“To the Government, its monetary authority, which is the Central Bank, has made that loss. To the Government, its Gold Board has made that gain,” he said, adding that the amounts could effectively wash out at the broader government level.
Nevertheless, Prof. Darku said GoldBod’s financial operations required scrutiny, particularly as the institution transitioned from relying on BoG financing to sourcing funds from the private sector for its gold-purchasing activities.
He said the new financing model, if properly managed, could deepen Ghana’s capital markets, but required transparency, sound financial management and strong oversight.
He also acknowledged GoldBod’s contribution to the economy, particularly through increased gold exports, foreign-exchange inflows and reserve accumulation, which he said had supported cedi appreciation and stability.
Prof. Darku added that the resulting exchange-rate stability could help reduce import costs, inflation and interest rates while improving Ghana’s debt-to-GDP position and capacity to manage foreign-denominated debt.
However, he cautioned against excessive reliance on gold for exchange-rate stability and reserve accumulation, urging the Government to pursue broader export promotion, import substitution, foreign-exchange market regulation and increased local ownership.
He commended the Government for achieving significant macroeconomic stabilisation, adding that it must now convert those gains into sustainable growth, employment and economic transformation.
“The IEA thinks that the Government has done well to achieve some reasonable macroeconomic stability, and most of the macro-indicators have moved in the right direction within a relatively short period of time,” Prof. Darko said.
“The question is whether we have the courage to consolidate those gains into lasting economic transformation that includes the lives of every Ghanaian.”
“To achieve this, he called for stronger agricultural investment, employment-led growth, increased local processing of natural resources, reforms to the natural-resource regime, and the transformation of GoldBod from a gold trader into a strategic asset manager.”
Prof. Darku also urged stronger enforcement powers for the Fiscal Council and measures to ensure that reductions in the monetary policy rate translated into lower lending rates for businesses and the private sector.
