The Bank of Ghana has clarified that the GHS21.89 billion figure linked to its Domestic Gold Purchase Programme (DGPP) represents an accounting adjustment, not a cash loss. This explanation aims to address public concerns regarding the programme's financial implications.
This significant figure arises from differences between the market exchange rate used to purchase gold from miners in cedis and the official Bank of Ghana exchange rate used for recording these assets. The central bank acquired gold at prevailing market prices to ensure it remained within the formal economy, in line with International Accounting Standard (IAS) 21.
Ghana faces a persistent need for foreign exchange to fund essential imports like fuel, machinery, and pharmaceuticals. A strong demand for foreign currency against limited supply puts pressure on the Ghana cedi, leading to depreciation. This currency weakness directly increases the cost of imports, affecting daily household expenses for all Ghanaians. The DGPP is a strategic initiative designed to build foreign exchange reserves from domestic gold production, thereby strengthening the cedi and reducing reliance on external borrowing.
The central bank stated that the programme generated US$13.8 billion in foreign exchange reserves. This accumulation came from domestic production, a key distinction from external borrowing which creates future repayment obligations. The Bank of Ghana emphasizes that using Ghana's own gold resources provides a sustainable way to bolster its economic resilience.
The GHS21.89 billion figure represents the gross programme cost before accounting for other factors. After considering the government's GHS5 billion cost share and GHS7.9 billion in realized gains from gold bullion sales, the net cost recognized in the Bank of Ghana's accounts was GHS9.05 billion. This highlights that an accounting adjustment is distinct from an actual cash outflow.
Two main factors contributed to the large accounting adjustment in 2025. First, the cedi appreciated by approximately 40.7 per cent during that year. A stronger cedi widened the divergence between the market acquisition rate and the official recording rate. Second, the programme's scale nearly doubled, increasing from 56.47 tonnes in 2024 to 110.99 tonnes in 2025, valued at US$11.4 billion. A wider exchange rate divergence applied to a significantly larger volume of gold naturally resulted in a substantially larger accounting adjustment.
This clarification is crucial for public understanding, especially as households continue to navigate economic hardships, inflation, and high interest rates. The Bank of Ghana's strategy aims to de-dollarize and diversify its reserve base, mitigating volatility linked to foreign exchange instability. This approach aligns with global central bank trends to rethink reserve portfolios amid geopolitical fragmentation and concerns about asset accessibility.
Moving forward, stakeholders will closely monitor the programme's continued impact on Ghana's foreign exchange reserves and the stability of the cedi. The Bank of Ghana's commitment to transparency regarding these complex financial mechanisms is vital for maintaining public trust and investor confidence. The success of the DGPP in providing a sustainable domestic source of foreign exchange will be a key indicator of its long-term economic benefit for the nation.