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BoG Governor Calls for Strategic Review of Ghana’s Gold-for-Reserves Programme

Published: January 12, 2026 | Source: Life Pulse Daily / MyJoyOnline

Introduction

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has formally called for a comprehensive review of the Gold-for-Reserves programme. Speaking before the Public Accounts Committee of Parliament, Dr. Asiama emphasized the need to transition the Ghana Gold Board (GoldBod) towards a more sustainable financing structure. The central bank chief argued that the current financial burden of supporting the nation’s gold reserve accumulation is too heavy for the central bank to bear alone and requires a unified national approach involving the Ministry of Finance.

Key Points

Call for Review: BoG Governor Dr. Johnson Asiama requests a policy review of the Gold-for-Reserves programme.
Financial Sustainability: The Governor advocates for a shift from central bank financing to a potential Ministry of Finance budgetary allocation.
Parliamentary Scrutiny: The appeal was made during a sitting of Parliament’s Public Accounts Committee regarding GoldBod’s operations.
IMF Data: The International Monetary Fund (IMF) reported losses of US$214 million from artisanal gold transactions as of September 2025.
Objective: The goal is to remove inefficiencies and ensure the long-term viability of the programme without shutting it down.

Background

The Gold-for-Reserves programme is a strategic initiative designed to bolster Ghana’s foreign exchange reserves by purchasing gold domestically. The programme is managed by the Ghana Gold Board (GoldBod) and supported by the Bank of Ghana. While the initiative has successfully contributed to building the country’s reserves, the operational costs have historically been absorbed by the central bank.

Recently, the programme has faced intense scrutiny following the International Monetary Fund’s (IMF) 5th Review of Ghana’s economic recovery programme. The IMF report highlighted significant financial exposure, specifically noting that losses from artisanal and small-scale gold transactions under the scheme had reached US$214 million by the end of September 2025.

Analysis

Dr. Asiama’s intervention signals a pivotal shift in how the state views the financing of national reserve accumulation. The Governor’s argument is rooted in the principle of institutional specialization and burden sharing.

The Central Bank’s Dilemma

Central banks typically focus on monetary policy stability, inflation control, and currency management. When a central bank absorbs significant operational costs associated with commercial gold trading activities—such as those undertaken by GoldBod—it risks compromising its balance sheet. Dr. Asiama noted that absorbing these costs creates a “financial burden” that hampers the central bank’s core functions.

Reframing the “Losses”

There is a debate regarding the nature of the US$214 million figure cited by the IMF. While the IMF refers to these figures as losses, the Majority Caucus in Parliament argues that the amount represents transactional and insurance costs rather than net financial losses. Regardless of the terminology, Dr. Asiama’s position is clear: these costs represent a drain on the central bank that requires a structural remedy.

Sustainability over Shutdown

A critical aspect of the Governor’s analysis is that he is not advocating for the cancellation of the Gold-for-Reserves programme. He acknowledges its success in building reserves. Instead, he is pushing for an efficiency drive—identifying “inefficiencies” and removing them. This suggests that the current trading model may be operationally expensive and requires “software solutions” and better coordination to optimize.

Practical Advice

For stakeholders, investors, and policy watchers monitoring the Ghanaian economy, here is how to interpret and respond to these developments:

For Policymakers

The primary recommendation is to establish a joint financing framework. The Ministry of Finance should consider budgetary allocations that reflect the national strategic value of the reserves, rather than treating it solely as a central bank commercial operation. This aligns the fiscal policy with the monetary objective of reserve accumulation.

For Market Analysts

When evaluating the Bank of Ghana’s financial health, distinguish between operational costs and structural losses. The Governor’s call for a review suggests a proactive approach to risk management. A successful review could strengthen the BoG’s balance sheet, potentially positively impacting currency stability.

For the General Public

Understand that the “Gold-for-Reserves” programme is a tool for national economic security. While the costs are high now, the proposed changes aim to make the process cheaper for the state, ensuring that the benefits of higher reserves (such as currency stability and import cover) are not eroded by high administrative costs.

FAQ

What is the Gold-for-Reserves programme?

It is an initiative by the Bank of Ghana and the Ghana Gold Board (GoldBod) to purchase gold domestically to build up the country’s foreign exchange reserves.

Why is the BoG Governor calling for a review?

Dr. Johnson Asiama believes the current financial model places an unsustainable burden on the central bank. He wants the Ministry of Finance to share the costs through budgetary allocations.

What are the reported losses?

The IMF reported that losses from artisanal and small-scale gold transactions under the programme reached US$214 million by September 2025. However, the Majority Caucus in Parliament argues these are transactional costs, not losses.

Will the programme be cancelled?

No. Governor Asiama explicitly stated that the objective is not to shut down the programme but to “enhance its efficiency” and remove inefficiencies.

What is the next step?

The issue requires consensus at the national level between the Bank of Ghana and the Ministry of Finance to agree on a new sustainable financing structure.

Conclusion

Dr. Johnson Asiama’s call for a review of the Gold-for-Reserves programme is a critical move toward ensuring the long-term economic stability of Ghana. By addressing the high operational costs currently borne by the central bank, the government can safeguard the integrity of its monetary policy while continuing to build vital foreign reserves. The proposed collaboration between the Ministry of Finance and the BoG represents a necessary evolution in the management of Ghana’s strategic gold assets.