Ghana’s domestic gold-buying programme helped strengthen the cedi and rebuild foreign exchange reserves but cost the central bank about $1.7 billion in losses in 2025, the International Monetary Fund said on Tuesday.
In a report examining the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), the IMF said the initiative was “instrumental” in stabilising the economy during the country’s debt crisis by increasing foreign exchange inflows and supporting international reserves.
The programme generated losses equivalent to 1.5 percent of gross domestic product, up sharply from about $400 million in 2024, as the central bank bought gold at exchange rates above its own reference rate while also paying discounts to exporters and fees to programme operators.
Introduced in 2021 amid acute foreign exchange shortages, the DGPP enabled the Bank of Ghana to purchase gold in cedis, refine it and sell it abroad to build reserves and finance essential imports, including fuel.
The IMF said the programme expanded rapidly in 2025, with the central bank purchasing and exporting 104 tonnes of gold from artisanal and small-scale miners, alongside $1.26 billion worth of bullion from large-scale mining companies.
Gold-related foreign exchange inflows rose from $1.7 billion in 2023 to $12.7 billion in 2025, allowing the Bank of Ghana to sell $10.6 billion in foreign currency while raising gross international reserves to $11.9 billion, equivalent to about four months of import cover.
The cedi appreciated by 41 percent against major currencies during 2025, according to the report.
The IMF said gold had become the dominant source of Ghana’s export earnings, accounting for more than half of total exports, driven largely by the rapid expansion of artisanal and small-scale mining.
However, the Fund warned that the economy had become increasingly exposed to fluctuations in global gold prices.
It said a sharp decline in prices could reduce foreign exchange inflows, weaken the cedi and slow economic growth while worsening the central bank’s financial position.
The report also highlighted persistent challenges in the sector, including an estimated $11.4 billion in smuggled artisanal gold between 2019 and 2024 and environmental damage linked to illegal and informal mining activities.
The government transferred responsibility for the programme to the newly established Ghana Gold Board (GoldBod) on July 1, 2026, ending the Bank of Ghana’s direct involvement.
The IMF said the change should reduce operating costs significantly, with transaction costs expected to fall to 5.4 percent of the value of gold purchased from 14.5 percent in 2025.
The Fund said the experience of the programme demonstrated that gold purchases had contributed to macroeconomic stability but stressed that future policies should limit financial losses while improving transparency and reducing smuggling.
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