The Institute of Economic Affairs (IEA) has rejected the characterisation of a reported GH¢1.7 billion loss under the Bank of Ghana’s Domestic Gold Purchase Programme as a loss incurred by the Ghana Gold Board (GoldBod).
The IEA said much of the amount reflects foreign-exchange valuation differences and payments for services, rather than an actual financial loss suffered by GoldBod or a depletion of national wealth.
Speaking at the IEA’s assessment of the 2026 mid-year budget review on Wednesday, the institute’s Director of Research, Professor Alexander Bilson Darku, said the reported figure comprised service fees, assaying fees and foreign-exchange valuation differences arising from GoldBod’s gold purchasing and export operations.
The assessment was held under the theme “From Stabilisation to Transformation: An Assessment of the 2026 Mid-Year Budget Review.”
Prof. Darku said service and assaying fees paid by the Bank of Ghana (BoG) to GoldBod for services rendered on behalf of the central bank constituted revenue to GoldBod.
“I don’t understand why somebody would call revenue a loss,” he said.
He explained that the largest component of the GH¢1.7 billion figure — about 90 per cent — was primarily an exchange-rate valuation issue.
According to him, GoldBod purchases gold on behalf of the BoG, with the proceeds subsequently converted from US dollars into cedis using the central bank’s applicable reference exchange rate.
Differences between the exchange rate at the point of purchase and the rate used to value the proceeds could therefore appear as a loss in the BoG’s accounts, he said.
However, Prof. Darku argued that such an accounting entry did not necessarily represent a corresponding loss of national wealth.
“It is merely a book accounting issue, and not a significant loss to the nation,” he said.
He said the transactions between the BoG and GoldBod should also be considered from the broader perspective of government finances, since a cost recorded by one public institution could simultaneously represent revenue for another.
“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 argued that the two positions could effectively offset each other when viewed at the broader government level.
IEA calls for scrutiny of GoldBod finances
Despite disputing the characterisation of the GH¢1.7 billion figure as a GoldBod loss, Prof. Darku said the institution’s financial operations should continue to be subjected to scrutiny.
He said this was particularly important as GoldBod transitions from reliance on Bank of Ghana financing to sourcing funds from private-sector investors for its gold-purchasing operations.
According to him, the new financing model could deepen Ghana’s capital markets if properly managed, but would require transparency, sound financial management and strong oversight.
Prof. Darku also acknowledged GoldBod’s contribution to the economy through increased gold exports, foreign-exchange inflows and reserve accumulation.
He said these developments had contributed to the appreciation and stability of the cedi.
However, he cautioned against relying excessively on gold to support exchange-rate stability and reserve accumulation.
He called for broader export promotion, import substitution, tighter foreign-exchange market regulation and increased local ownership of the economy.
IEA calls for economic transformation
The IEA said Ghana’s recent macroeconomic improvements must now translate into sustainable growth and improved living standards.
Prof. Darku said the government had made progress in stabilising key macroeconomic indicators but needed to consolidate those gains.
“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 said.
“The question is whether we have the courage to consolidate those gains into lasting economic transformation that includes the lives of every Ghanaian.”
He called for stronger investment in agriculture, employment-led growth, increased local processing of natural resources and reforms to Ghana’s natural-resource regime.
He also urged the government to transform GoldBod from a gold trader into a strategic asset manager.
Prof. Darku further called for stronger enforcement powers for the Fiscal Council and measures to ensure that reductions in the monetary policy rate translate into lower lending rates for businesses and the private sector.
This report was first published on AsaaseRadio.com by Winifred Lartey