The International Monetary Fund (IMF) has advised Ghana to record the financial losses incurred under its Gold for Reserves (G4R) programme on the national budget rather than leaving them on the balance sheet of the Bank of Ghana (BoG).
According to the IMF, this approach will promote transparency and protect the central bank’s ability to effectively carry out its core mandate of maintaining price stability.
Speaking at a press briefing on Thursday, IMF Director of Communications Julie Kozack said the losses associated with the programme should be treated as a fiscal responsibility of the state.
“We strongly recommend that the losses should be brought on the national balance sheet rather than being held on the balance sheet of the Central Bank,” she stated.
Ms Kozack stressed the need for stronger governance, transparency, and improved risk management, particularly within the Gold Board (GoldBod)-linked channel of the domestic gold purchase programme.
The IMF disclosed that Ghana recorded losses of about US$214 million under the G4R programme by the end of the third quarter. These losses largely arose from transactions involving artisanal and small-scale mining (ASM) doré gold, including trading operations, fees, and the impact of exchange rate movements.
The development has heightened public concern, prompting the Governor of the Bank of Ghana to call for a coordinated national response to address the losses and improve the efficiency of the programme. Government has since assumed responsibility for the costs incurred.
Explaining the IMF’s position, Ms Kozack said transferring the losses to the national budget would ensure that quasi-fiscal activities are transparently accounted for.
“It’s important to ensure that the Bank of Ghana remains well-positioned to deliver on its key price stability mandate,” she explained. “Moving these losses to the budget makes them transparent and protects the central bank’s independence and effectiveness.”
Despite the losses, the IMF acknowledged that the G4R programme played a positive role during a challenging economic period. The IMF Staff Report from Ghana’s Fifth Review noted that the initiative helped boost international reserves and eased pressure on the foreign exchange market.
Ms Kozack also provided an update on Ghana’s ongoing US$3 billion IMF-supported programme, announcing that the IMF Board had approved a three-month extension. The extension is intended to allow enough time to complete the final review, including assessments of economic data for the end of 2025 and the first quarter of 2026.
Meanwhile, Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has reaffirmed the relevance of the Gold for Reserves programme. Appearing before Parliament’s Public Accounts Committee on Monday, he said the initiative was introduced to address national economic challenges and should be reformed rather than scrapped.
“The scheme was introduced to solve national problems. The question now is how to reform it and make it more efficient,” Dr Asiama said. He disclosed that the Bank has already reduced certain charges under the programme and is pursuing further reforms.
“The Gold for Reserves programme is still relevant. Its objective is to build reserves. Evidence shows that it is not a matter of shutting it down but rather enhancing efficiency and removing inefficiencies,” he added.
