DGPP losses could leave taxpayers to recapitalise BoG – Prof Bokpin
Economist and University of Ghana Professor, Godfred Bokpin, has cautioned that the financial losses recorded under the Bank of Ghana’s (BoG) Domestic Gold Purchase Programme (DGPP) could eventually require taxpayers to bear the cost of recapitalising the central bank.
Economist Professor Godfred Bokpin has warned that the financial losses incurred by the Bank of Ghana (BoG) through its Domestic Gold Purchase Programme (DGPP) could ultimately necessitate taxpayers to fund a recapitalization of the central bank. Prof. Bokpin emphasized that these losses, estimated at over US$1.7 billion or 1.5% of Ghana's GDP in 2025, represent a significant accounting deficit that must be addressed by the state.
While acknowledging the programme's success in formalizing gold-related activities, curbing smuggling, and boosting foreign exchange, Prof. Bokpin stressed that these benefits should not overshadow the substantial financial cost imposed on the BoG. He criticized the bank's increasing reliance on its balance sheet for quasi-fiscal endeavors, arguing that such actions could weaken the financial health of the institution.
Prof. Bokpin's remarks come as there is increased debate over the programme's financial implications and the role of GoldBod in it.
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