BoG: GH¢9.57bn gold sales shield economy from deeper strain

The Bank of Ghana (BoG) has credited a surge in gold-related income and improved reserve management for a significantly stronger policy solvency position in 2025, despite posting operating loss.

According to the central bank, the gains helped cushion what would otherwise have been a far deeper loss and safeguarded its capacity to sustain the fight against inflation.

BoG recorded an operating loss of GH¢15.63 billion for the 2025 financial year. However, a closer reading of its report shows that without a GH¢9.57 billion gain from refined gold sales, the loss would have exceeded GH¢25 billion.

The gap underscores the underlying cost of anchoring the cedi and reining in inflation through tight monetary policy and elevated interest rates.

Despite the accounting loss, the Bank reported a markedly improved policy solvency position compared to 2024. This was driven by stronger reserve management income, higher fees and commissions from increased transaction volumes, and, most significantly, earnings from gold under a broader reserve diversification strategy.

Without the gold income, the Bank’s ability to fund critical monetary operations—particularly liquidity absorption—would have come under considerable strain.

“The Domestic Gold Purchase Programme has contributed meaningfully to the stabilisation of Ghana’s foreign exchange market by strengthening reserve buffers and reducing structural pressures on foreign currency demand. Through the domestic acquisition of gold, the Programme has enabled the Bank to augment foreign exchange reserves without recourse to the domestic foreign exchange market, thereby easing pressure on the cedi,” the BoG’s Directors stated in their report to the Finance Minister.

Since the global financial crisis, central banks worldwide have increasingly turned to gold to strengthen reserves and reduce exposure to external shocks.

For Ghana, this approach was formalised through the Domestic Gold Purchase Programme, launched in June 2021 at a time of mounting economic pressures. The initiative was designed to rebuild depleted reserves, ease exchange rate pressures and restore investor confidence.

Under the programme, the Bank sources gold through multiple channels: purchasing refined gold from mining companies for direct inclusion in reserves; acquiring dore gold from aggregators for refining into monetary gold; and buying gold from small-scale miners through the Ghana Gold Board for export to generate foreign exchange liquidity.

This layered approach enables the Bank to accumulate reserves while generating income and maintaining flexibility in market interventions.

Since its implementation, the programme has helped build foreign exchange buffers without heavy reliance on the currency market, easing pressure on the cedi. The conversion of gold into reserve assets has also strengthened reserve adequacy and enhanced the Bank’s capacity to intervene during periods of market stress.

“Furthermore, the Programme has materially advanced reserve diversification, reduced dependence on other foreign currency denominated assets, and bolstered confidence in the Bank’s external position and overall policy framework. Taken together, these outcomes have contributed to moderating exchange rate volatility and reinforcing stability in the foreign exchange market,” the Directors concluded.