The International Monetary Fund (IMF) has clarified that the US$214 million figure linked to Ghana’s Domestic Gold Purchase Programme (DGPP) does not reflect a loss for the Ghana Gold Board (GoldBod), but is instead an accounting cost related to policy implementation. The Fund emphasized that the programme played a key role in stabilizing the economy during a challenging period.
Speaking at a press briefing in Washington, IMF Director of Communications Julie Kozack explained that while the DGPP delivered significant macroeconomic benefits, it resulted in what the Fund describes as a “quasi-fiscal loss”—a cost that does not appear on the government’s formal fiscal balance sheet but represents a financial charge to the state.
“The DGPP contributed to a buildup of international reserves and helped reduce pressure on the foreign exchange market during a difficult period for Ghana,” Ms Kozack said.
The US$214 million figure arose from trading margins, fees, and exchange rate movements—normal features of commodity-backed liquidity operations, according to the IMF. These costs are not losses incurred by GoldBod or any single institution, but reflect the operational and accounting framework of the programme.
The Fund recommended stronger transparency, governance, and risk management, advising that such quasi-fiscal costs be reported in the national budget rather than on the balance sheet of the Bank of Ghana. This approach, the IMF noted, would protect the central bank’s policy mandate while ensuring clear reporting of state obligations.
The clarification aligns with the Ghana Gold Board’s position, which has consistently maintained that the DGPP was not designed for short-term trading profits, but as a strategic intervention to support macroeconomic stability and optimize value from Ghana’s gold resources.
Meanwhile, the Governor of the Bank of Ghana has informed Parliament’s Public Accounts Committee that discussions are ongoing with key stakeholders—including GoldBod—to reform the DGPP in line with the IMF’s recommendations. Focus areas include improving governance, coordination between the government, the central bank, and GoldBod, and ensuring transparency in future operations.
For the Ghana Gold Board, the IMF’s statement validates the programme’s objectives and underscores its role in strengthening Ghana’s economic resilience. GoldBod has reiterated its commitment to transparency, accountability, and efficiency as reforms are implemented, aiming to enhance the programme’s impact in supporting the country’s financial and economic stability.
Story by Doe Benjamin Kofi Lawson