The Bank of Ghana has clarified that the GHS21.89 billion figure linked to its Domestic Gold Purchase Programme (DGPP) is an accounting adjustment, not a cash loss. This explanation addresses public concern over the large sum, which many Ghanaians initially perceived as a direct financial loss.
The GHS21.89 billion represents the gross cost of gold acquired from local miners at prevailing market prices. The Bank of Ghana then recorded this gold in its books at the official exchange rate, as required by International Accounting Standard (IAS) 21. The difference between the market rate and the official rate created an exchange rate adjustment, leading to the significant accounting figure. This programme aims to build Ghana’s foreign exchange reserves using domestically produced gold, reducing the country's dependence on external borrowing for foreign currency.
Ghana faces a persistent need for foreign exchange to pay for essential imports like fuel and pharmaceuticals. This demand often puts pressure on the Ghana cedi, making imports more expensive and contributing to inflation. The DGPP is a strategic effort to create a sustainable, domestic source of foreign exchange, thereby strengthening the cedi and stabilising the economy. This initiative aligns with global trends where central banks diversify reserves to mitigate volatility and reduce reliance on a single currency.
The Bank of Ghana maintains that purchasing gold at market prices is crucial to prevent it from being sold to informal buyers or smugglers. Section 3(h) of the Ghana Gold Board Act, 2025 (Act 1140), supports this approach, requiring measures to discourage illegal gold trading. If the Bank were to offer prices significantly below the market rate, gold producers would simply sell their output outside the formal economy, defeating the programme's purpose.
This accounting adjustment has significant implications for public understanding of central bank operations and economic policy. Decision-makers and financial markets will closely watch how the Bank of Ghana communicates such complex financial figures in the future. The programme's success in bolstering foreign exchange reserves will be key to its long-term impact on Ghana's economic stability. The Bank’s ability to manage these accounting differences while achieving its strategic goals remains a critical area of focus.
The net cost recognised in the Bank’s accounts was GHS9.05 billion. This figure accounts for the Government’s GHS5 billion cost share and GHS7.9 billion in realised gains from gold bullion sales. The GHS21.89 billion is therefore the gross programme cost, while GHS9.05 billion is the Bank’s net share carried in its profit-and-loss account. This distinction is vital for understanding the actual financial impact on the central bank.
Two main factors contributed to the large figure in 2025. First, the cedi appreciated by approximately 40.7 per cent during the year. This appreciation widened the gap between the market acquisition rate and the official recording rate. Second, the programme nearly doubled in scale, from 56.47 tonnes in 2024 to 110.99 tonnes in 2025, with a value of US$11.4 billion. A larger divergence applied to a greater volume of gold naturally produced a substantially larger accounting adjustment. The divergence averaged about 12 per cent in 2025, up from under 5 per cent in 2024.