Domestic Gold Purchase Programme: Stabilisation completed at a price – BoG Governor – Life Pulse Daily

Introduction

In a landmark address at the University of Ghana’s 77th Annual New Year School and Conference (ANYSC) held on January 6, 2026, Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), provided a comprehensive review of the Domestic Gold Purchase Programme (DGPP) and the Gold-for-Reserves (G4R) initiative. The Governor’s remarks clarified the financial toll and strategic gains of these programmes, which were launched to stabilize Ghana’s currency and restore economic confidence. This article unpacks the Governor’s statements, analyzes the performance of the DGPP, and offers practical insights for businesses and policymakers navigating Ghana’s evolving gold market.

Key Points

Background

The Genesis of the DGPP and G4R

The Domestic Gold Purchase Programme was launched in 2023 as part of Ghana’s broader economic stabilization strategy. The programme aimed to increase the country’s gold reserves, stabilize the Cedi, and reduce dependence on volatile foreign exchange markets. The Gold-for-Reserves initiative complemented the DGPP by allowing the Bank of Ghana to purchase gold directly from local miners and exporters.

Context of Economic Vulnerability

Ghana faced a severe economic crisis marked by currency depreciation, high inflation, and dwindling foreign exchange reserves. The COVID-19 pandemic, global supply chain disruptions, and declining commodity prices exacerbated the situation. The government and the BoG needed a bold strategy to restore confidence and stabilize the economy.

Analysis

Financial Impact and Strategic Trade-offs

Dr. Asiama acknowledged that the stabilization achieved through the DGPP and G4R came at a cost. The Bank of Ghana bore the financial burden of these programmes to prevent a complete collapse of confidence. This strategic decision was necessary to protect the wider economy during a critical transition period.

Reforms and Structural Adjustments

The reforms implemented in 2025 were designed to make the DGPP more sustainable and efficient:

• Policy Cancellations: The Gold-for-Oil (G4O) initiative was cancelled to streamline operations and focus resources on core objectives.
• Pricing Reform: Reductions in discounts, agent fees, and assay fees improved the programme’s financial viability.
• Risk Mitigation: The introduction of “payment-before-release” requirements significantly reduced contractual risks.
• Gold FX Auction: This new mechanism ensures that gold-related foreign currency flows are intermediated with greater transparency.

Transition to a Broader Executive Framework

Starting in 2026, the G4R programme will be anchored within a broader executive framework involving the Ministry of Finance and GoldBod. This shift aims to distribute the financial responsibility and ensure long-term sustainability. The Governor emphasized that “responsibility will be shared in such a way that sustainability does not rest on any single institution.”

Controversy Over Reported Losses

The International Monetary Fund (IMF) reported that GoldBod incurred losses of US$214 million. This claim has been strongly contested by the Ghanaian government, with GoldBod’s CEO, Sammy Gyamfi, describing the reports as “false and misleading.” Gyamfi stated that GoldBod generated over GH₵960 million in revenue in 2025, with expenditures of less than GH₵120 million, putting the entity on track to declare a surplus.

IMF’s Role and Perspective

Bright Simons, an Honorary Vice President of IMANI Africa, defended the IMF’s classification of the losses as “trading losses.” He explained that the IMF’s conclusions are based on its surveillance role under Article IV consultations, which apply to all member countries. Simons emphasized that the IMF has the mandate and right to evaluate how countries manage their economies and to publish its findings, provided the engagement with the government is reasonable.

Practical Advice

For Businesses Engaging with GoldBod

1. Transparency: Ensure all transactions with GoldBod are transparent and well-documented to avoid any potential disputes.
2. Risk Management: Implement robust risk management practices, especially regarding payment and delivery terms.
3. Compliance: Stay updated on regulatory changes and compliance requirements related to gold trading.
4. Financial Planning: Factor in potential fluctuations in gold prices and foreign exchange rates when planning transactions.

For Policymakers

1. Clear Communication: Maintain clear and consistent communication about the objectives and performance of the DGPP and G4R programmes.
2. Stakeholder Engagement: Engage with all stakeholders, including miners, traders, and international partners, to build trust and ensure the programme’s success.
3. Monitoring and Evaluation: Establish robust monitoring and evaluation mechanisms to track the programme’s impact and make necessary adjustments.
4. International Cooperation: Work closely with international institutions like the IMF to ensure alignment with global best practices.

FAQ

Conclusion

The Domestic Gold Purchase Programme and the Gold-for-Reserves initiative have played a crucial role in stabilizing Ghana’s economy during a period of significant vulnerability. While these programmes have come at a cost to the Bank of Ghana, they have successfully restored confidence and protected the wider economy. The reforms implemented in 2025 and the planned transition to a broader executive framework in 2026 aim to ensure the long-term sustainability of these initiatives. However, transparency and clear communication remain essential to address controversies and build trust among all stakeholders. As Ghana continues to navigate its economic recovery, the lessons learned from the DGPP and G4R will be invaluable in shaping future policy decisions.