IEA rejects GH¢1.7bn BoG ‘loss’ claim, Says figure mostly accounting differences

The Institute of Economic Affairs (IEA) has rejected claims that the Ghana Gold Board (GOLDBOD) is responsible for a GH¢1.7 billion loss recorded under the Bank of Ghana’s (BoG) Domestic Gold Purchase Programme (DGPP). The IEA said the bulk of the reported figure does not represent a real cash loss but rather comprises revenue earned by GOLDBOD and foreign-exchange valuation differences arising from gold purchases and exports.

Speaking at the IEA’s assessment of the 2026 mid-year budget review on Wednesday, Director of Research at the Institute, Professor Alexander Bilson Darku, said the figure must be properly interpreted to avoid giving the impression that the country had lost GH¢1.7 billion. The forum was held under the theme, “From Stabilisation to Transformation: An Assessment of Ghana’s 2026 Mid-Year Budget Review.”

‘Revenue Cannot Be Called a Loss’
Prof. Darku explained that part of the amount attributed to the programme comprised service and assaying fees paid by the Bank of Ghana to GOLDBOD for services rendered on behalf of the central bank. According to him, those payments constitute revenue to GOLDBOD rather than a loss to the institution or the state. “I don’t understand why somebody would call revenue as a loss,” he said.

He said the distinction was important because transactions between two state institutions could produce a cost on the books of one entity while simultaneously generating revenue for another.

FX Valuation Accounts for Majority
Prof. Darku said about 90 per cent of the GH¢1.7 billion figure was primarily attributable to foreign-exchange valuation differences. He explained that GOLDBOD purchases gold on behalf of the Bank of Ghana, with proceeds from the transactions converted from US dollars into Ghana cedis using the central bank’s applicable reference exchange rate. Changes in the exchange rate between the time of purchase and the subsequent valuation of the proceeds can therefore create an accounting loss on the BoG’s books.

However, he stressed that such a valuation difference should not automatically be interpreted as an actual depletion of national wealth.
“It is merely a book accounting issue, and not a significant loss to the nation,” Prof. Darku said.

Government-Wide View Needed
The IEA researcher argued that the transactions should be assessed from a broader government perspective rather than by looking at the accounts of individual public institutions in isolation.
He said a loss recorded by the Bank of Ghana could correspond to a gain or revenue recorded by GOLDBOD, meaning the overall impact on government finances may be significantly different from what the individual figures suggest.
“To the Government, its monetary authority, which is the Central Bank, has made that loss. To the Government, its Gold Board has made that gain,” he said.
He suggested that the figures could effectively offset each other when viewed at the level of central government.

GOLDBOD Financing Requires Scrutiny
Despite defending the accounting treatment of the reported GH¢1.7 billion figure, Prof. Darku said GOLDBOD’s finances must continue to receive close scrutiny, particularly as the institution moves away from reliance on Bank of Ghana financing towards private-sector funding for its gold-purchasing operations. He said the new financing model had the potential to deepen Ghana’s capital markets if properly managed.

However, he cautioned that this would require greater transparency, sound financial management and strong institutional oversight to ensure that the programme remains sustainable.
Gold Boosting Reserves and Cedi Stability
Prof. Darku acknowledged GOLDBOD’s contribution to the Ghanaian economy, particularly through increased gold exports, foreign-exchange inflows and reserve accumulation. He said these developments had contributed to the recent appreciation and stability of the cedi. According to him, greater exchange-rate stability could have broader economic benefits by reducing import costs, easing inflationary pressures and creating room for lower interest rates.
He also said improved exchange-rate conditions could strengthen Ghana’s debt-to-GDP position and enhance the country’s ability to service foreign-currency-denominated debt.

IEA Warns Against Gold Dependence
While recognising the benefits of the gold programme, the IEA cautioned government against relying excessively on gold as the main source of foreign-exchange stability and reserve accumulation. Prof. Darku called for a broader strategy focused on export promotion, import substitution, stronger regulation of the foreign-exchange market and increased local ownership of productive assets. He argued that Ghana must build a more diversified economic base rather than depend heavily on a single commodity to support macroeconomic stability.

From Stabilisation to Transformation
Prof. Darku said the government had made significant progress in restoring macroeconomic stability, with several key indicators moving in the right direction within a relatively short period.
He said the next challenge was to ensure that the gains from stabilisation translate into improvements in living standards, job creation and sustainable economic growth. “The IEA thinks that the Government has done well to achieve some reasonable macroeconomic stability, and most of the macro-indicators have moved in the right direction within a relatively short period of time.”

He added: “The question is whether we have the courage to consolidate those gains into lasting economic transformation that includes the lives of every Ghanaian.”

Call for Jobs, Agriculture and Local Processing
To sustain the gains, Prof. Darku called for increased investment in agriculture and policies that promote employment-led growth. He also advocated greater local processing of Ghana’s natural resources, reforms to the country’s natural-resource regime and stronger efforts to retain more value from commodities within the domestic economy.

On GOLDBOD specifically, he called for the institution to evolve beyond its traditional role as a gold trader and become a strategic asset manager capable of generating broader economic value for Ghana.

Fiscal and Monetary Policy Reforms
The IEA also called for stronger enforcement powers for the Fiscal Council to improve fiscal discipline and accountability. Prof. Darku further urged measures to ensure that reductions in the Bank of Ghana’s monetary policy rate translate into corresponding reductions in lending rates. He said lower borrowing costs would be critical to enabling businesses and the private sector to expand, invest and create jobs.

The IEA’s position ultimately centres on the need to distinguish between accounting losses and genuine economic losses, while ensuring that GOLDBOD’s growing role in Ghana’s gold and foreign-exchange market is backed by transparency, accountability and effective financial oversight.