{"id":411116,"date":"2026-01-16T15:38:09","date_gmt":"2026-01-16T15:38:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/411116\/"},"modified":"2026-01-16T15:38:09","modified_gmt":"2026-01-16T15:38:09","slug":"imf-warns-ghana-against-keeping-domestic-gold-purchase-losses-on-bog-balance-sheet","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/411116\/","title":{"rendered":"IMF warns Ghana against keeping domestic gold purchase losses on BoG balance sheet"},"content":{"rendered":"

\"Julie <\/a>Julie Kozack, IMF Communications Director<\/p>\n

The International Monetary Fund<\/a> (IMF) has cautioned Ghana against keeping losses incurred under the Domestic Gold Purchase Programme on the balance sheet of the <\/a><\/a><\/a>Bank of Ghana<\/a> (BoG), warning that the practice could undermine the central bank\u2019s ability to effectively deliver on its core mandate of price stability.<\/p>\n

In its Staff Report following the conclusion of the Fifth Review under Ghana\u2019s Extended Credit Facility (ECF) arrangement, the Fund disclosed that losses from the artisanal and small-scale (ASM) dor\u00e9 gold transactions component of the Gold for Reserves (G4R) programme had reached US$214 million by the end of the third quarter of 2025, equivalent to about 0.2 per cent of GDP.<\/p>\n

According to the IMF, the losses stem largely from trading activities, as well as fees paid to Ghana Gold Board (GoldBod) off-takers and exchange-rate-related costs.<\/p>\n

The disclosure has triggered renewed debate among analysts and political actors, with some calling for a reassessment of the programme. Appearing before Parliament\u2019s Public Accounts Committee on January 12, 2026, Governor of the <\/a><\/a><\/a>Bank of Ghana<\/a>, Dr Johnson Pandit Asiama, called for a unified national approach to strengthening the programme rather than abandoning it.<\/p>\n

\u201cThe focus should be on reforms that strengthen the programme\u2019s efficiency so it can serve its intended purpose of stabilizing the currency and supporting national development,\u201d he told the Committee.<\/p>\n

Clarifying the IMF\u2019s position at a press briefing on Thursday, January 15, 2026, IMF Communications Director, Julie Kozack, said the Fund recognises the important benefits delivered by the domestic gold purchase programme, particularly during a period of intense economic stress.<\/p>\n

\u201cOn the benefit side, what we see is a contribution to a buildup of international reserves and reduced pressure on the foreign exchange market during a difficult period for Ghana,\u201d she said.<\/p>\n

However, Kozack noted that the IMF also identified significant costs associated with the programme, describing them as quasi-fiscal losses \u2014 losses that do not formally appear on the government\u2019s fiscal balance sheet but ultimately carry fiscal implications.<\/p>\n

To address these risks, the IMF has recommended stronger transparency, improved governance, and enhanced risk management, especially within the GoldBod framework linked to the central bank.<\/p>\n

Crucially, the Fund has advised that the losses be removed from the <\/a><\/a><\/a>Bank of Ghana<\/a>\u2019s balance sheet and transferred to the national budget.<\/p>\n

\u201cWe also strongly recommend that the losses should be brought on balance sheet rather than held on the balance sheet of the Central Bank,\u201d Kozack stated.<\/p>\n

She stressed that the recommendation goes beyond accounting treatment and constitutes a critical policy decision with far-reaching implications for macroeconomic stability and institutional credibility.<\/p>\n

By transferring the losses to the budget, the IMF believes the quasi-fiscal nature of the programme would become more transparent, enabling clearer fiscal oversight and accountability, while safeguarding the financial integrity and operational independence of the central bank.<\/p>\n

\u201cWhy is this important? It\u2019s important to ensure that the <\/a><\/a><\/a>Bank of Ghana<\/a> remains well-positioned to deliver on its key price stability mandate,\u201d she explained.<\/p>\n","protected":false},"excerpt":{"rendered":"Julie Kozack, IMF Communications Director The International Monetary Fund (IMF) has cautioned Ghana against keeping losses incurred under…\n","protected":false},"author":2,"featured_media":154460,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":{"0":"post-411116","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/411116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=411116"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/411116\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/154460"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=411116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=411116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=411116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}