BoG Gold Scheme Could Weaken Bank Balance Sheet – IMF
The International Monetary Fund (IMF) has raised fresh concerns over the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), warning that financial losses linked to the initiative could expose the central bank to quasi-fiscal risks and weaken its balance sheet over time.
The concerns were contained in a statement issued at the end of an IMF mission to Accra led by mission chief Ruben Atoyan, following discussions with government officials under Ghana’s Extended Credit Facility programme and negotiations on a proposed Policy Coordination Instrument.
The Fund acknowledged that Ghana’s macroeconomic recovery has strengthened significantly, citing rapid disinflation, improved external reserves, stronger confidence in the cedi and better-than-expected economic growth in 2025.
According to the IMF, these gains reflect ongoing stabilisation efforts and improved fiscal discipline, which have helped restore investor confidence and support the return of domestic bond market activity.
However, despite the positive outlook, the Fund cautioned that risks associated with the Bank of Ghana’s gold purchase strategy must be addressed to safeguard long-term monetary and financial stability.
“Maintaining a forward-looking, prudent monetary policy is instrumental to firmly anchoring inflation expectations,” the IMF said, adding that efforts to strengthen confidence in monetary policy should focus on reinforcing the central bank’s balance sheet.
The Fund specifically flagged the Domestic Gold Purchase Programme, stating that it has created financial exposures that require urgent attention.
“The losses associated with the Domestic Gold Purchase Programme (DGPP) underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet,” it noted.
The IMF further warned that any future costs arising from the programme should be properly reflected in the national budget to improve accountability, transparency and oversight of public finances.
It added that protecting the Bank of Ghana’s balance sheet from DGPP-related risks would be essential to strengthening monetary policy credibility and maintaining macroeconomic stability.
The IMF’s caution comes despite its overall positive assessment of Ghana’s reform programme, which it described as delivering “substantial stabilisation gains.”
It noted improvements in fiscal performance, a declining debt-to-GDP ratio, and renewed investor confidence following the successful return of domestic treasury bond issuances.
The Fund also confirmed that Ghana has reached a staff-level agreement on policies supporting a new 36-month non-financing arrangement designed to sustain reforms after the current programme concludes.
At the same time, the IMF warned that Ghana remains vulnerable to external shocks, particularly geopolitical tensions in the Middle East, which could trigger higher global prices for energy, food and fertiliser.
It also urged the government to avoid past policy slippages such as fiscal imbalances, rising debt levels, weak buffers and delays in implementing structural reforms.
The Fund stressed that maintaining discipline and accelerating reforms would be critical to preserving the economic gains achieved so far and ensuring long-term stability.
