GoldBod, BoG should share cost of domestic gold programme – Dr Sarkodie
A Senior Lecturer at the University of Ghana’s Department of Economics, Dr Adu Owusu Sarkodie, has proposed that the financial cost associated with the Domestic Gold Purchase Programme (DGPP) should be shared between the Ghana Gold Board (GoldBod) and the Bank of Ghana (BoG).
Dr Adu Owusu Sarkodie, a Senior Lecturer at the University of Ghana's Department of Economics, has suggested that the financial burden of the Domestic Gold Purchase Programme (DGPP) should be divided between the Ghana Gold Board (GoldBod) and the Bank of Ghana (BoG). This proposal came after an August 2026 International Monetary Fund (IMF) report revealed that the program, overseen by GoldBod, incurred losses exceeding US$1.7 billion in 2025, accounting for approximately 1.5% of Ghana's Gross Domestic Product (GDP).
In an interview with Channel One TV on Wednesday, August 19, Dr Sarkodie emphasized that the losses should not be solely attributed to either institution due to the program's financing and operational structure. He explained that while the BoG provides the initial funding, GoldBod is responsible for purchasing and consolidating the gold, with the central bank then engaging in subsequent transactions involving the gold and foreign exchange.
"Because it's the BoG that is pre-financing it, it will by all means sit in the books of BoG. So they should share the cost, because some of the purchases are done directly by GoldBod," he stated. Dr Sarkodie clarified that losses directly resulting from GoldBod's purchases should be held against GoldBod, while losses arising from foreign-exchange discrepancies during subsequent BoG transactions should be borne by the central bank.
"Some of the purchases are done directly by GoldBod. So, whatever the loss that has come from that angle is your loss. BoG then sells and, because of the exchange rate differentials, makes a loss, and that is BoG's loss," he elaborated. The economist cautioned against treating the US$1.7 billion figure as a typical commercial loss, noting that the IMF classified it as a revaluation loss stemming from fluctuations in the value of gold and foreign exchange transactions.
"It's a revaluation term," he reiterated, reinforcing his stance that "the two should share the cost."
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
