The International Monetary Fund (IMF) has demanded stronger governance and transparency in Ghana's Domestic Gold Purchase Programme (DGPP). The programme generated significant losses for the Bank of Ghana (BoG), contributing to its weakened financial position.
The IMF Resident Representative in Ghana, Dr. Adrian Alter, confirmed the DGPP's financial costs. He stated these costs pressured the central bank's balance sheet. The BoG's equity stood at approximately 7% at the end of 2025. The Domestic Debt Exchange Programme (DDEP) also contributed to this deterioration.
This situation fits into Ghana's broader economic narrative of managing public finances and central bank independence. The country has been working to stabilise its economy following a debt crisis. Gold exports have been crucial for foreign exchange inflows and supporting the cedi. However, the IMF warns against overlooking the costs associated with such programmes. The central bank's involvement in quasi-fiscal activities, which are government-like spending outside the national budget, raises concerns about its core mandate.
Dr. Alter emphasised the need for greater scrutiny of programme design and implementation. He stated, “The lessons from the Domestic Gold Purchase Programme are also that we need to be careful about governance, transparency, reporting, and care about the costs incurred by the programme.” He also warned that a financially weakened central bank struggles to absorb costs for monetary and exchange-rate stabilisation. This could undermine its ability to maintain price stability.
The implications are significant for Ghana's economic stability and the BoG's operational capacity. Decision-makers must address the governance gaps identified by the IMF. They must also ensure the central bank's independence is preserved. The transfer of gold purchasing and selling functions to the Ghana Gold Board (GoldBod) is a step towards separating these activities from the BoG's core mandate. However, the IMF's assessment indicated the DGPP was associated with losses of about GHS 22 billion, equivalent to approximately US$1.7 billion, in 2025. This figure underscores the urgent need for reform and oversight. Future programmes must prioritise clear financial structures and accountability to prevent similar losses. Markets will closely watch how Ghana implements these recommendations to safeguard its financial institutions.
The IMF representative stressed the importance of avoiding fiscal dominance. This means the central bank should not be used to finance government entities. Instead, the government should rely on financial markets and commercial banks for funding. This approach helps maintain the BoG's independence and financial health. A strong, independent central bank is vital for managing inflation and exchange rates effectively. The recent losses highlight the risks of blurring lines between fiscal and monetary policy. Ghana's economic recovery depends on robust institutional frameworks. These frameworks must protect the central bank from financial burdens outside its core responsibilities. The government and the BoG must work together to implement the IMF's recommendations. This will ensure long-term economic stability and investor confidence. The focus must remain on transparent and accountable management of national resources.