Not a Goldbod Loss: IMF Clarifies $214m Figure as Policy Accounting

The International Monetary Fund has highlighted the significant contribution of Ghana’s Domestic Gold Purchase Programme (DGPP) to protecting the economy during a critical period, confirming that the initiative supported cedi stability and strengthened the country’s international reserves.

IMF Communication Director Julie Kozak, speaking in Washington during the Fund’s latest briefing, addressed questions surrounding the Fifth Review Staff Report and the treatment of the programme within the document.

She explained that the IMF recognises both the benefits and costs associated with the DGPP, providing further context to public discussions surrounding the reported US$214 million in “quasi-fiscal losses.”

Ms. Kozak noted that the DGPP contributed to rebuilding the Bank of Ghana’s reserves and reducing pressure on the foreign exchange market during one of Ghana’s most challenging economic periods.

“On the benefit side, what we see is a contribution to a buildup of international reserves and reduced pressure on the foreign exchange market during a difficult period for Ghana,” she said, highlighting the programme’s stabilising impact.

Her comments reinforce the position previously communicated by the Ghana Gold Board (GoldBod), which clarified that the US$214 million referenced by the IMF does not represent a loss incurred by GoldBod or an indication of failure of the programme.

The IMF’s description of the figure as a quasi-fiscal loss reflects market-related exposure rather than an operational deficit borne by GoldBod or any single institution.

Ms. Kozak explained that the reported costs were linked to factors such as trading margins, fees, and exchange rate movements, which are inherent risks associated with commodity-backed liquidity operations.

She stressed the importance of appropriate accounting treatment and transparency to ensure that the central bank maintains the strength required to execute its core monetary policy responsibilities.

The IMF has therefore recommended that future costs associated with such programmes be transparently reflected within the national budget rather than on the balance sheet of the Bank of Ghana.

Her remarks follow the appearance of the Governor of the Bank of Ghana before Parliament’s Public Accounts Committee, where he announced that stakeholders, including GoldBod, would engage to strengthen and reform the Domestic Gold Purchase Programme following the IMF review.

The reform process is expected to focus on improved governance structures, enhanced transparency, and clearer operational coordination among government, the Bank of Ghana, and the Ghana Gold Board.

For GoldBod, the IMF’s clarification represents significant support for its position that the DGPP was established as a strategic economic intervention aimed at strengthening macroeconomic stability and retaining greater value from Ghana’s gold resources.

The institution has consistently maintained that the programme was not designed as a short-term profit-making venture, but as a mechanism to support reserve accumulation, improve foreign exchange management, and strengthen Ghana’s gold value chain.

By acknowledging the programme’s role in supporting reserve growth and reducing foreign exchange pressures, the IMF has affirmed the strategic importance of the DGPP during a period of economic difficulty.

As reforms continue, the Ghana Gold Board remains committed to improving transparency, strengthening collaboration with the Bank of Ghana, and ensuring that future phases of the programme deliver greater efficiency, accountability, and economic benefits for Ghana.