The Institute of Economic Affairs (IEA) has vehemently rejected a claim that a GH¢1.7 billion loss under the Bank of Ghana’s Domestic Gold Purchase Programme was attributable solely to the Ghana Gold Board (GoldBod). This denial was highlighted at the IEA’s assessment of the 2026 mid-year budget review on Wednesday, focusing on the theme: ‘From Stabilization to Transformation: An Assessment of Ghana’s 2026 Mid-Year Budget Review.’
Professor Alexander Bilson Darku, Director of Research at the IEA, unequivocally refuted the assertion, stating that the reported figure comprised revenue and foreign-exchange valuation discrepancies rather than a genuine loss to the GoldBod. He explained that the service fees, assaying fees, and foreign-exchange valuation differences arising from the GoldBod’s purchasing and export operations constituted the core of this figure.
He clarified that the service and assaying fees were payments made by the Bank of Ghana (BoG) to GoldBod for services rendered on behalf of the Central Bank, thereby constituting revenue to GoldBod. Specifically, he emphasized that these fees were directly linked to the BoG’s operations and therefore constituted revenue to GoldBod.
‘I don’t understand why somebody would call revenue as a loss,’ he asserted, adding that this was a misinterpretation of the situation. Prof. Darku pointed out that the largest component of the reported GH¢1.7 billion figure, accounting for approximately 90 per cent, was primarily an exchange-rate valuation issue.
He explained that GoldBod purchased gold on behalf of the BoG, with the proceeds subsequently converted from US dollars into cedis using the Central Bank’s applicable reference exchange rate. This conversion process inherently introduces a potential loss, although this did not necessarily represent a depletion of national wealth.
‘It is merely a book accounting issue, and not a significant loss to the nation,’ he emphasized. He further noted that the transactions involving the two public institutions should also be viewed from a broader government perspective, as a cost recorded by one institution could simultaneously constitute revenue for another. The IEA’s assessment underscores the complexities of the GoldBod’s financial operations.
The IEA Director of Research acknowledged GoldBod’s contribution to the economy, particularly through increased gold exports, foreign-exchange inflows, and reserve accumulation, which he said had supported cedi appreciation and stability. However, he cautioned against excessive reliance on gold for exchange-rate stability and reserve accumulation, urging the Government to pursue broader export promotion, import substitution, foreign-exchange market regulation, and increased local ownership. He commended government for achieving significant macroeconomic stability, adding that it must now convert those gains into sustainable growth, employment and economic transformation.
He also acknowledged GoldBod’s contribution to the economy, particularly through increased gold exports, foreign-exchange inflows, and reserve accumulation, which he said had supported cedi appreciation and stability. The IEA believes that the resulting exchange-rate stability could help reduce import costs, inflation and interest rates while improving Ghana’s debt-to-GDP position and capacity to manage foreign-denominated debt. However, he cautioned against excessive reliance on gold for exchange-rate stability and reserve accumulation, urging the Government to broaden export promotion, import substitution, foreign-exchange market regulation, and increased local ownership.
Furthermore, he added that the IEA thinks that the Government has done well to achieve some reasonable macroeconomic stability, and most of the macro-indicators have moved in the right direction within a relatively short period of time. ‘The IEA thinks that the Government has done well to achieve some reasonable macroeconomic stability, and most of the macro-indicators have moved in the right direction within a relatively short period of time,’ Prof. Darko said. ‘The question is whether we have the courage to consolidate those gains into lasting economic transformation that includes the lives of every Ghanaian.’
He also urged stronger enforcement powers for the Fiscal Council and measures to ensure that reductions in the monetary policy rate translated into lower lending rates for businesses and the private sector. The IEA also recommended that GoldBod should transition from a gold trader to a strategic asset manager, embracing a more diversified role within the Ghanaian economy.
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Source: Adom Online
