The Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) has come under scrutiny over reports of a US$214 million loss, but economic analysts say the figure reflects a deliberate policy cost that has delivered significant benefits to the Ghanaian economy.

Launched in 2025, the programme—implemented through the Ghana Gold Board (GoldBod)—was designed to centralise gold trading, boost official foreign exchange inflows and strengthen Ghana’s gold reserves. In its first year, the initiative has significantly reduced gold smuggling, with official artisanal and small-scale mining exports rising from 63.6 metric tonnes in 2024 to 101 metric tonnes in 2025.

Entrepreneur and economic policy analyst Senyo K. Hosi said the reported US$214 million represents an accounting loss rather than a failure of the programme, and should be assessed within the wider macroeconomic context.

According to him, the DGPP has contributed to a sharp improvement in Ghana’s external buffers, with foreign reserves increasing from US$8.98 billion in 2024 to US$11.12 billion by October 2025. Projections indicate reserves could reach US$13 billion by the end of the year.

He further pointed to the appreciation of the cedi, which strengthened from an average of GH¢14.2 to the dollar in 2024 to GH¢12.53 in 2025, as a major outcome of the programme. This, he noted, has translated into substantial fiscal savings, including a reduction of more than GH¢6.2 billion (US$560 million) in external debt service payments and a GH¢6.45 billion (US$582 million) drop in payments to independent power producers.

In addition, Mr Hosi said the stronger currency is expected to deliver projected import savings exceeding GH¢60 billion, increasing the real purchasing power of households and businesses.

Explaining the source of the reported loss, Mr Hosi said GoldBod deliberately paid world market prices to local miners and offered incentives to discourage smuggling and ensure gold was channelled through official systems rather than foreign networks.

“This approach strengthened reserves and increased official foreign exchange inflows, even though it carried short-term financial costs,” he said.

Mr Hosi also cited recognition from the International Monetary Fund (IMF), which has acknowledged the programme’s success, noting that Ghana achieved its 2028 reserve coverage target as early as 2025.

He argued that economic policies should be judged by their outcomes rather than narrow accounting measures, pointing out that inflation declined sharply from 24 per cent in 2024 to 6.3 per cent by November 2025.

“The DGPP has delivered stability, fiscal savings and inflation reduction,” Mr Hosi said. “The US$214 million should be seen not as a loss, but as a policy cost whose benefits far outweigh its financial impact.”