IMF urges BoG to end quasi-fiscal activitiess after GH¢22bn DGPP losses

The International Monetary Fund (IMF) has called upon the Bank of Ghana (BoG) to cease quasi-fiscal activities in light of substantial losses incurred under the Domestic Gold Purchase Programme (DGPP) in 2025. These losses amounted to GHS22 billion, equivalent to approximately 1.5 percent of Ghana's Gross Domestic Product (GDP), thus diminishing the central bank's financial standing.

The IMF further highlighted that these losses, combined with other contributing factors, elevated the BoG's negative equity position to 6.7 percent of GDP by the year's end.

To ensure the central bank's independence and credibility, the IMF insists on the permanent discontinuation of quasi-fiscal operations and the complete transfer of the DGPP to GoldBod. Launched to bolster Ghana's gold and foreign exchange reserves via the acquisition of gold from domestic miners, the DGPP has indeed augmented reserves but has also imposed considerable financial burdens on the BoG.

In July 2026, representatives from the Government, BoG, and GoldBod reached an agreement to transfer all DGPP functions from the central bank to GoldBod. Under this arrangement, GoldBod assumes the duty of gold purchases and all associated operational costs, while the BoG concentrates on its primary responsibilities.

The IMF has welcomed this transfer, asserting that it will eradicate future financial risks from the central bank's financial statements and improve the transparency of the programme's management. Additionally, the Fund has urged the recapitalization of the BoG, emphasizing that a robust financial position is crucial for sustaining price stability and fostering confidence within the economy. Currently, an independent audit of the DGPP is under way, with its conclusions anticipated later in the year.