IMF Resident Representative Clarifies: No Blame on BoG or Goldbod as DGPP Benefits Recognised

The International Monetary Fund’s Resident Representative in Ghana, Dr. Adrian Alter, has clarified that the Fund’s latest review did not describe Ghana’s Domestic Gold Purchase Programme (DGPP) as loss-making, nor did it attribute the recently reported US$214 million cost to the Ghana Gold Board (GoldBod), the Ministry of Finance, or the Bank of Ghana.

Speaking to Joy News, Dr. Alter explained that the programme is being assessed through a balanced evaluation of its benefits, costs, and risks, stressing that the IMF’s objective is to improve transparency and strengthen programme design rather than assign blame to any institution involved.

Dr. Alter noted that paragraphs 32 to 36 of the IMF Staff Report explicitly acknowledge the positive impact of the DGPP since its introduction.

“On the benefit side, the DGPP has helped to accumulate reserves and has also alleviated some of the pressure on the foreign exchange market in difficult times,” he said, adding that the programme enabled the central bank to diversify reserve accumulation and support export performance during periods of challenging global financing conditions.

He further explained that the US$214 million figure cited publicly was not a confirmed loss but an estimate of exposure based on unaudited accounts.

“The data reviewed was not finalised because 2025 accounts have not been audited, so the expected losses might change up or down once the audit is completed,” he stated.

Dr. Alter rejected claims that the IMF was accusing GoldBod or the Bank of Ghana of mismanaging the programme.

“Ultimately, we did not want to assign any blame on Bank of Ghana, GoldBod or the Ministry of Finance,” he said.

“What we wanted to achieve with this disclosure is more transparency and risk management so that we minimise costs while preserving benefits,” he added.

He explained that the figure referenced by the Fund represents a quasi-fiscal cost, reflecting market exposure arising from a public policy operation which, in the IMF’s view, should be accounted for within the government budget rather than the central bank’s balance sheet.

According to Dr. Alter, the objective is to ensure that the Bank of Ghana remains financially strong enough to effectively execute its primary mandate of maintaining price stability.

He also highlighted an important feature of global gold markets that has been largely absent from recent discussions: price volatility and the associated market risks.

“Gold is also volatile so there is market risk involved,” he stated, noting that trading margins, financing conditions, and exchange rate movements naturally influence the costs associated with gold reserve accumulation programmes.

The IMF’s recommendation, he explained, is therefore focused on maintaining the DGPP while strengthening governance, risk management, and transparency, particularly around GoldBod’s gold procurement and aggregation operations.

His comments align with recent remarks by the Governor of the Bank of Ghana, Dr. Johnson Asiama, before Parliament’s Public Accounts Committee, where he indicated that stakeholders, including GoldBod, would engage on reforms to improve the programme’s structure, funding arrangements, and treatment of exposures.

For the Ghana Gold Board, the clarification represents a significant development in the ongoing public discussion, following earlier claims that GoldBod had incurred or caused a US$214 million loss.

The Board had maintained that the figure relates to central bank accounting treatment and market exposure rather than an operational deficit arising from GoldBod’s activities.

Dr. Alter concluded by reaffirming that the DGPP remains a valuable component of Ghana’s economic strategy.

“The DGPP has brought lots of benefits and those are acknowledged. With better governance and sustainability, the programme can bring even more benefits,” he reiterated.