Operations by the Ghana Gold Board (GoldBod) are imposing significant losses on the Bank of Ghana’s balance sheet. Economist Professor Godfred Bokpin issued this warning, highlighting concerns about the true fiscal cost of the government’s domestic gold purchasing programme.
Professor Bokpin explained that these losses do not immediately appear in Ghana’s public debt figures. This is because the country does not use a general government approach for debt accounting. Instead, the resulting liabilities accumulate on the central bank's books, potentially requiring future government recapitalisation.
This situation fits into a broader pattern where quasi-fiscal activities by the central bank create hidden liabilities. Ghana’s public debt reporting often understates the full financial burden on the state. The International Monetary Fund (IMF) has previously estimated significant losses from GoldBod’s operations, which were initially disputed.
Professor Bokpin stated that the Bank of Ghana has become the residual risk claimant in this arrangement. He noted the central bank provides financing and backstops GoldBod’s operations. This exposes its balance sheet to technical, economic, and valuation losses.
The implications are substantial for Ghana’s financial stability and public finances. A weakened central bank balance sheet could hinder its ability to conduct monetary policy effectively. It also raises the specter of future government spending to recapitalise the Bank of Ghana, adding to fiscal pressures.
Professor Bokpin acknowledged GoldBod’s benefits in formalising foreign exchange inflows. The programme has helped narrow the gap between Ghana’s reported gold exports and destination country imports. However, he questioned if these benefits justify the high costs incurred by the central bank.
He argued that GoldBod was scaled up without sufficient consideration of the full cost across the gold value chain. A more comprehensive analysis before operationalisation could have minimised these losses. Broader consultation and greater transparency might have also improved the programme's design.
The IMF has consistently recommended shielding the Bank of Ghana from direct financial exposure to GoldBod. The Fund seeks mechanisms to prevent programme losses from weakening the central bank’s balance sheet. This advice underscores the seriousness of the financial risks involved.
GoldBod CEO Sammy Gyamfi has rejected claims of losses, citing an operational surplus of GHS 907 million in 2025. He also reported an overall surplus of GHS 5.4 billion for the 2025 financial year. However, the Minority in Parliament maintains that GoldBod has suffered significant losses.
Minority Leader Alexander Afenyo-Markin accused management of using “accounting gimmicks” to present GoldBod as profitable. These conflicting assessments intensify scrutiny of GoldBod’s finances. They also highlight the potential financial exposure for the Bank of Ghana and the state.
Policymakers must address the structural issues that allow such liabilities to accumulate outside direct public debt. Ensuring the central bank’s independence and financial health is crucial for economic stability. Future policy decisions regarding GoldBod must balance economic benefits with fiscal prudence.