The Institute for Energy Policies and Research (INSTEPR) has attributed the reported GH¢2.4 billion losses incurred by the Bank of Ghana (BoG) under its gold purchase programme to structural and operational weaknesses rather than political interference or corruption.
In a statement signed by Executive Director Kwadwo N. Poku, INSTEPR addressed the ongoing public debate surrounding the Bank’s gold transactions. The statement followed a recent disclosure by the International Monetary Fund (IMF), which revealed that BoG recorded losses of GH¢2.4 billion over a nine-month period. According to the institute, these losses were not unexpected for those who had monitored the programme closely.
INSTEPR explained that similar losses had already occurred under previous iterations of the gold purchase scheme, even before the establishment of GoldBod, due largely to exchange rate differentials and the mechanics of local gold trading.
Under the current system, BoG provides funds to GoldBod, which does not purchase gold directly from small-scale miners. Instead, GoldBod relies on registered agents who buy gold at prices pegged to international market rates, converted into cedis using negotiated exchange rates. These rates often differ from BoG’s internal rates. Agents also factor in their margins and the cost of refining gold into doré bars, which GoldBod purchases exclusively. GoldBod then pays for the gold and related costs using BoG funds and earns a commission for facilitating the transactions.
“Standard business practice suggests that when the Bank of Ghana sells the gold procured through GoldBod, it should generate more revenue than was paid out, or at least break even,” INSTEPR said.
The institute said the central bank failed to learn from losses recorded in 2023 and 2024. It referenced a letter dated 7 July 2025, in which BoG acknowledged losses of about GH¢1.8 billion on gold transactions, largely due to exchange rate differentials between local market prices and the Bank’s internal rates.
INSTEPR criticised attempts by some civil society groups and government appointees to attribute the losses primarily to the Gold-for-Oil (G4O) initiative, noting that only a fraction of the GH¢2.1 billion loss recorded in 2024 was linked to oil transactions. “We repeatedly warned that the challenges were not related to BOST or oil transactions, and that losses would recur in 2025, but these warnings were ignored,” the institute said.
It also argued that profits recorded by other state entities involved in the programme do not offset the losses incurred by the central bank. INSTEPR cited the 2025 State Interests and Governance Authority (SIGA) State Ownership Report, which showed that in 2024, PMMC made a net profit of GH¢124.65 million, while BOST recorded GH¢318 million in profits, despite BoG’s overall losses.
“GoldBod does not assume financial risk. It operates using the Bank of Ghana’s funds and earns a commission regardless of whether the Bank makes a profit or loss,” the statement emphasised.
INSTEPR stressed that the losses do not indicate corruption or a lack of transparency in the Gold-for-Oil programme. Rather, they highlight the need for stronger trading expertise, better operational frameworks, and improved risk management within BoG.
The institute called on the Bank of Ghana to operate independently, free from political pressure, and to engage institutions with proven experience in commodity trading. This, INSTEPR argued, is essential to preventing similar losses in future gold transactions and safeguarding Ghana’s strategic economic interests.