The Bank of Ghana reported a staggering net loss of GH¢15.63 billion for 2025, a figure largely driven by a considerable exchange rate gap rather than operational mismanagement. This gap has raised questions about the effectiveness of the bank’s monetary policy and its impact on local miners.
The Domestic Gold Purchase Programme (DGPP) was initiated to encourage miners to sell their gold through formal channels. However, approximately 83 percent of the total costs associated with this program stem from discrepancies between the forex bureau exchange rate and the official rate set by the Bank of Ghana. Gershon Kudjo Agbledzorwu highlighted this issue, stating, “About 83 percent of the cost was due to conversion from the forex bureau rate to the BoG official rate.”
In 2025, the cedi appreciated by about 41 percent against the US dollar, further complicating matters for the bank. The costs associated with DGPP rose significantly—from GH¢5.66 billion in 2024 to GH¢9.05 billion in 2025—placing additional strain on the bank’s finances.
Despite these challenges, gold sales provided some relief. The disposal of around 18 tonnes of gold generated proceeds totaling approximately 40.3 billion cedis, resulting in a net gain of 9.57 billion cedis. Mohammed Amin Adam noted that without recognizing these gains from gold, losses would have exceeded 25 billion cedis.
However, Adam cautioned against viewing these gains as a solution to underlying issues: “Using gold reserves to offset operational losses does not eliminate the problem – it only hides the true cost of policy decisions.” This sentiment reflects concerns among economists about sustainable financial practices at the Bank of Ghana.
Sterilisation costs also surged in 2025, reaching 16.73 billion cedis. These figures illustrate how intertwined monetary policy operations and exchange rate movements can lead to substantial financial losses for central banks.
The implications for local miners and the broader economy remain uncertain. With ongoing discussions about improving transparency and efficiency in monetary policy, stakeholders are keenly watching how these developments will unfold in future fiscal strategies.
The situation underscores a critical juncture for Ghana’s economic landscape—balancing effective monetary policy while supporting local gold production within regulated channels.
Kwame Ofori
Ama Serwah
Evelyn Mensah