By Collins Sarkodieh 
The Bank of Ghana (BoG) has publicly defended the GH¢9.1 billion net loss recorded by its Domestic Gold Purchase Programme (DGPP) as a necessary cost for national economic stability. Paul Bleboo, Head of Gold Management at the BoG, argues that the programme successfully stabilized the cedi and replenished foreign reserves during a period of global economic turmoil.
While the total gross loss for the programme reached GH¢21 billion, the net cost was mitigated by related revenues, leaving the central bank with a GH¢9.1 billion deficit. Officials frame this expenditure as a strategic investment in macroeconomic health rather than a commercial failure. However, independent analysts warn that without structural reforms, the financial sustainability of this model remains in question.
Why did the Bank of Ghana record a GH¢9.1 billion loss on gold?
The GH¢9.1 billion net loss represents the operational cost of using gold to defend the local currency and rebuild depleted foreign reserves. Paul Bleboo explained that the programme was a direct response to economic shocks from the COVID-19 pandemic and the Russia-Ukraine war, which had previously destabilized the cedi.
The central bank utilized cedi-funded gold purchases, refined the assets, and exported them to generate hard currency reserves. This process involves pricing pressures, logistics costs, and timing risks that contributed to the financial gap. Despite the loss, the BoG maintains that the resulting currency stability justifies the fiscal hit.
What were the key findings of the 2025 audited gold report?
The 2025 audited financial statements reveal a massive scale-up in operations, with the BoG purchasing 2,914,305 fine ounces of doré gold. This was a significant increase from the 1,092,492 fine ounces purchased in 2024, showing the bank’s aggressive push to leverage natural resources.
By the end of December 2025, the bank had sold 2,895,426 fine ounces, retaining a holding of 9,283 fine ounces. The report also highlighted the conclusion of the “Gold for Oil” (G4O) component in March 2025, which saw a net loss of GH¢544 million. Small gains from oil transactions and interest income provided some minor offsets to the total cost.
Is the Domestic Gold Purchase Programme financially sustainable?
Policy analysts, including Alfred Appiah, argue that the current model is financially fragile and risks eroding the central bank’s capital base. While the programme successfully brings in foreign exchange, the cost of generating that inflow is currently seen as disproportionately high.
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Sustainability concerns center on the lack of tight cost controls and the impact of smuggling leakages in informal channels. Experts suggest that without smarter trading strategies and structural reforms, the programme will continue to strain the BoG’s balance sheet. Proponents of reform believe it is dangerous to declare the programme a success while ignoring the growing deficit.
Factual Insights into Ghana’s 2025 Gold Operations:
- Net Loss: The programme recorded a net cost of GH¢9.1 billion for the 2025 financial year.
- Gross Deficit: Before accounting for related revenues, the total gross loss reached GH¢21 billion.
- Purchase Volume: The BoG increased its gold buy to 2,914,305 fine ounces in 2025 from roughly 1.1 million in 2024.
- Gold for Oil: The G4O initiative was officially discontinued in March 2025.
- G4O Loss: The oil-linked component recorded a standalone net loss of GH¢544 million.
- Trading Gains: Oil transactions provided a net trading gain of GH¢341 million to partially offset losses.
- Interest Revenue: Interest income from gold deposits brought in GH¢47 million.
How does the BoG justify the “Gold for Oil” losses?
The Bank of Ghana views the GH¢544 million loss from the Gold for Oil (G4O) scheme as a trade-off for ensuring fuel security and price stability. By the time the programme was discontinued in March 2025, it had served its purpose of providing a buffer against skyrocketing energy costs.
Critics like Alfred Appiah point out that these losses represent real money that could have bolstered the bank’s capital. However, the BoG’s stance remains that they are a policy-driven institution rather than a commercial entity. From their perspective, the “profit” is the stable economic environment Ghanaians enjoyed throughout 2025.
What reforms are experts suggesting for the gold programme?
Analysts are calling for tighter cost controls, better enforcement against smuggling, and more sophisticated trading strategies to protect the bank’s margins. They emphasize that the focus must shift from simply “bringing in foreign exchange” to doing so efficiently.
Stronger enforcement against informal gold channels is seen as critical to preventing leakages that undermine the official programme. Without these changes, analysts worry the central bank will face medium-term challenges in recovering its balance sheet. The goal of reform is to maintain the reserve-building success while drastically reducing the GH¢9.1 billion price tag.
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