The Bank of Ghana’s accounting losses are primarily driven by a significant exchange rate gap rather than operational inefficiencies. This gap has resulted in considerable financial challenges for the central bank, particularly in relation to its Domestic Gold Purchase Programme (DGPP). The DGPP was designed to encourage miners to sell gold through the formal market.
Approximately 83 percent of the total DGPP cost is attributable to the gap between the forex bureau exchange rate and the Bank of Ghana’s official exchange rate. The cedi appreciated by approximately 41 percent against the US dollar in 2025, amplifying the accounting cost. The costs associated with the DGPP increased from GH¢5.66 billion in 2024 to GH¢9.05 billion in 2025.
The Bank of Ghana recorded a net loss of GH¢15.63 billion for 2025. The disposal of about 18 tonnes of gold generated proceeds of roughly 40.3 billion cedis, with a net gain of 9.57 billion cedis. However, sterilisation costs reached 16.73 billion cedis in the same year.
Mohammed Amin Adam, a key figure in this matter, stated that without recognizing gold gains, the loss would have exceeded 25 billion cedis. He added that using gold reserves to offset operational losses does not eliminate the problem—it only hides the true cost of policy decisions.
The Bank of Ghana attributed its losses to high costs of monetary policy operations, debt restructuring, and exchange rate movements. Gershon Kudjo Agbledzorwu highlighted that about 83 percent of the cost was due to conversion from the forex bureau rate to the BoG official rate.
The current situation raises questions about future monetary policies and their impact on financial stability. Observers expect that addressing these challenges will require a comprehensive review of exchange rates and operational strategies within the Bank of Ghana.
The focus now shifts to how officials will manage these financial losses while maintaining effective monetary policy and encouraging formal gold sales within the regulated supply chain.
