The Institute of Economic Affairs (IEA) has rejected the attribution of a GHS 1.7 billion loss to the Ghana Gold Board (GoldBod) under the Bank of Ghana’s Domestic Gold Purchase Programme. This reported amount largely represents revenue and foreign-exchange valuation differences, not an actual loss to the institution.
Professor Alexander Bilson Darku, the Director of Research at the IEA, clarified that the GHS 1.7 billion figure includes service fees, assaying fees, and foreign-exchange valuation differences. These service and assaying fees are payments made by the Bank of Ghana (BoG) to GoldBod for services rendered. Therefore, they constitute revenue for GoldBod, not a loss.
This clarification comes as Ghana navigates its economic recovery and stabilization efforts. The reported figure has drawn public attention and scrutiny regarding the financial health and operations of key state institutions. Understanding the true nature of such figures is crucial for maintaining public trust and ensuring accurate economic discourse.
Professor Darku stated, “I don’t understand why somebody would call revenue as a loss.” He made these remarks during the IEA’s assessment of the 2026 mid-year budget review. The event focused on Ghana's journey from economic stabilization to transformation.
The largest part of the GHS 1.7 billion, about 90 percent, is an exchange-rate valuation issue. GoldBod buys gold for the BoG, converting US dollar proceeds into cedis using the central bank’s reference rate. Differences between the purchase rate and the valuation rate can appear as a loss in BoG’s records. However, this is merely a book accounting issue and does not signify a real loss to the nation’s wealth. Professor Darku stressed that these transactions between public institutions should be viewed from a broader government perspective. A cost for one institution, like the central bank, can be revenue for another, such as GoldBod. This means the amounts could effectively cancel each other out at the overall government level.
Despite this clarification, Professor Darku emphasized the need for careful scrutiny of GoldBod’s financial operations. This is especially important as GoldBod transitions from BoG financing to private sector funding for its gold purchases. A well-managed new financing model could deepen Ghana’s capital markets. However, it requires transparency, sound financial management, and strong oversight to succeed. GoldBod has significantly contributed to the economy through increased gold exports and foreign-exchange inflows. These contributions have supported the cedi’s appreciation and stability. Exchange-rate stability helps reduce import costs, inflation, and interest rates. It also improves Ghana’s debt-to-GDP position and its ability to manage foreign-denominated debt. The IEA commended the government for achieving significant macroeconomic stabilization. It urged the government to convert these gains into sustainable growth, employment, and economic transformation for all Ghanaians.