Ghana’s Domestic Gold Purchase Programme (DGPP) recorded a GHS 21.89 billion ‘loss’ in 2025, which is an accounting adjustment and not a direct cash expense. This figure represents the gross programme cost, according to sources familiar with the programme and the Bank of Ghana (BoG).
The adjustment largely arose from the difference between the exchange rate used to acquire gold from miners and the official rate at which the gold was recorded. This exchange rate gap accounted for approximately 87% of the total gross programme cost. The Bank of Ghana ultimately recognized a net cost of GHS 9.05 billion in its accounts.
This accounting treatment highlights the complexities of managing gold reserves and currency fluctuations within Ghana’s economic framework. The DGPP aims to build reserves from domestic production, reducing reliance on external borrowing. In 2021, official artisanal and small-scale gold exports declined by 91% following a 3% withholding tax, underscoring the need for formal channels. The programme generated US$13.8 billion in reserves from domestic gold production.
Sources explained that gold is acquired from miners at prevailing market rates to prevent it from being diverted into informal channels. Buying gold below the market price would not reduce the state's cost, but would rather displace gold to smugglers. This competitive market dynamic ensures gold remains within the formal economy.
The significant increase in the accounting adjustment in 2025 was due to two main factors. The Ghana cedi appreciated by approximately 40.7% during the year, widening the exchange rate difference. Simultaneously, the programme nearly doubled in volume, with gold acquired increasing from 56.47 tonnes in 2024 to 110.99 tonnes in 2025, valued at US$11.4 billion. The exchange rate divergence averaged below 5% in 2024 but rose to approximately 12% in 2025.
The GHS 21.89 billion figure represents the gross programme cost. From this amount, GHS 5 billion constitutes the government’s cost share, which the government bore. A further GHS 7.9 billion in realised gains from gold bullion sales was also deducted. The resulting GHS 9.05 billion is the net cost borne by the Bank of Ghana and recognized in its profit and loss account. Both figures are accurate, representing gross and net costs respectively.
The International Monetary Fund (IMF) did not independently discover the GHS 21.89 billion figure. The Bank of Ghana provided this figure during the preparation and auditing of its 2025 accounts. It was subsequently shared with the Fund as part of programme reporting. The same figure appears in the Bank’s public education materials alongside its 2025 financial results. This transparency ensures consistent reporting across institutions.
This clarification is crucial for understanding the Bank of Ghana's financial health and the true impact of the DGPP on public finances. Decision-makers and financial markets will closely monitor the Bank's structural reforms aimed at addressing transaction charges and the exchange-rate gap. The programme's continued expansion and its effect on Ghana's foreign reserves will remain a key economic indicator. The ability to generate reserves domestically strengthens Ghana's economic resilience against external shocks. This approach reduces the country's reliance on potentially volatile external borrowing. Future reports will likely detail the effectiveness of these reforms in mitigating such accounting adjustments.