IMF urges BoG to end Quasi-Fiscal operations after GH¢22bn gold losses

The International Monetary Fund (IMF) has called on the Bank of Ghana (BoG) to discontinue quasi-fiscal operations following financial losses linked to the Domestic Gold Purchase Programme (DGPP).

According to the Fund, the DGPP incurred losses amounting to GH¢22 billion in 2025, representing about 1.5 per cent of Ghana’s Gross Domestic Product (GDP), which further weakened the central bank’s financial position.

The IMF said the losses, alongside other contributing factors, pushed the BoG’s negative equity level to 6.7 per cent of GDP by the end of 2025.

The Fund stressed that restoring the credibility and independence of the central bank requires the complete withdrawal of the BoG from quasi-fiscal activities and the full transfer of the DGPP to the Ghana Gold Board (GoldBod).

The Domestic Gold Purchase Programme was established to strengthen Ghana’s gold reserves and improve foreign exchange holdings by purchasing gold from local miners.

While acknowledging that the initiative helped increase the country’s reserves, the IMF noted that it also placed substantial financial pressure on the central bank.

In July 2026, the government, the Bank of Ghana and GoldBod reached an agreement to move all DGPP operations from the central bank to GoldBod.

Under the new arrangement, GoldBod will take charge of gold purchases and cover related operational expenses, allowing the BoG to concentrate on its primary responsibilities, including monetary policy and maintaining price stability.

The IMF welcomed the transition, saying it would prevent further financial exposure to the central bank’s balance sheet and improve accountability and transparency in the management of the gold purchase initiative.

The Fund also urged authorities to recapitalise the Bank of Ghana, stressing that a financially sound central bank is critical for maintaining economic confidence and achieving price stability.

An independent review of the DGPP is currently being conducted, with the outcome expected to be released later this year.

Prince Antwi

See Full Bio