The International Monetary Fund (IMF) has called on Ghana to permanently end quasi-fiscal activities after the Bank of Ghana (BoG) recorded massive losses under its Domestic Gold Purchase Programme (DGPP). According to the Fund, the programme generated losses of GH¢22 billion in 2025, representing approximately 1.5% of Ghana’s Gross Domestic Product (GDP). The losses have significantly weakened the central bank’s financial position and renewed concerns about the country’s monetary stability.
The IMF disclosed that the financial setback, alongside other economic pressures, pushed the Bank of Ghana’s negative equity position to 6.7% of GDP by the end of 2025. To restore confidence in the central bank and strengthen its independence, the Fund stressed the need for the complete and permanent end of quasi-fiscal operations. It also recommended that all responsibilities under the Domestic Gold Purchase Programme remain with GoldBod, allowing the Bank of Ghana to focus solely on its core monetary policy functions.
The Domestic Gold Purchase Programme was originally introduced to boost Ghana’s gold reserves and strengthen its foreign exchange position by purchasing gold from local miners. While the initiative helped improve reserve levels, the IMF noted that the programme came with substantial financial costs that ultimately outweighed its benefits for the central bank’s balance sheet. These losses have highlighted the risks of assigning commercial activities to a monetary authority.
In a major policy shift, the Government of Ghana, the Bank of Ghana, and GoldBod signed an agreement in July 2026 transferring all DGPP operations to GoldBod. Under the new arrangement, GoldBod will handle the purchase of gold and cover all operational expenses, while the central bank returns its full attention to managing inflation, monetary policy, and financial stability. The IMF welcomed this move, describing it as an important step toward improving transparency and reducing future financial risks.
Looking ahead, the IMF has also urged the Ghanaian government to recapitalise the Bank of Ghana, emphasizing that a financially strong central bank is essential for maintaining price stability and investor confidence. Meanwhile, an independent audit of the Domestic Gold Purchase Programme is currently underway, with its findings expected later this year. The results are anticipated to provide greater insight into the programme’s financial impact and shape future reforms aimed at strengthening Ghana’s economy.
source: ghanabusiness
