The Bank of Ghana (BoG) has attributed a GH¢17.5 billion accounting loss in its 2025 Domestic Gold Purchase Programme (DGPP) to the sharp appreciation of the cedi. This loss does not represent an actual cash loss to the country but rather an accounting adjustment due to exchange-rate differences. The programme generated approximately $10 billion in foreign exchange and added about 11 tonnes of physical gold to the country's reserves in 2025.
According to Paul Bleboo, Head of Gold at the Bank of Ghana, the total cost of running the programme was $21.89 billion, with exchange-rate differences accounting for the largest component of the loss. The cedi appreciated by about 40 per cent in 2025, resulting in a substantial accounting loss when gold was purchased at a higher exchange rate and sold at a lower rate. This process exposed the programme to significant exchange-rate movements.
The BoG team, led by Governor Dr Johnson Pandit Asiama, appeared before the Economy and Development Committee of Parliament to explain the circumstances surrounding the loss. Mr Bleboo informed the committee that gold was purchased on the local market at prevailing exchange rates before being exported and sold for foreign currency. The proceeds were subsequently converted into cedis for accounting purposes using the BoG's reference exchange rates.
Mr Bleboo explained that the BoG was required to use its reference exchange rates for accounting purposes, which were lower than the market rates at which the gold had initially been purchased. This resulted in a huge accounting loss, which he stressed was not an actual cash loss. The exchange-rate-related component of the loss was approximately GH¢17.5 billion.
Defending the programme's benefits, Mr Bleboo emphasised that the foreign exchange proceeds and the physical gold acquired represented two separate benefits of the programme. Other cost components included purity and trading adjustments, off-take discounts, GoldBod service fees, assay fees, refinery charges, as well as manufacturing and logistics expenses.
Purity adjustments were necessary due to differences between local assay methods and those used by overseas refineries, resulting in variations in the measured gold content. Off-take discounts covered expenses incurred by buyers in taking delivery of the gold and exporting it, including transportation, insurance, and refining. The discount had been reduced from 1.3 per cent to one per cent in 2025.
The BoG's DGPP has generated significant benefits for the country, including $10 billion in foreign exchange and 11 tonnes of physical gold. Despite the accounting loss, the programme remains a valuable initiative for Ghana's economy. The BoG will continue to monitor the programme and make adjustments as necessary to minimise costs and maximise benefits.
Key points
- The Bank of Ghana's 2025 Domestic Gold Purchase Programme generated $10 billion in foreign exchange and added 11 tonnes of physical gold to the country's reserves.
- The GH¢17.5 billion accounting loss was due to exchange-rate differences resulting from the cedi's 40 per cent appreciation in 2025.
- The loss does not represent an actual cash loss but rather an accounting adjustment.
