Cedi appreciation, forex bureau spread account for 83% of DGPP costs - BoG

The Bank of Ghana has provided a clearer picture of the costs associated with its Domestic Gold Purchase Program (DGPP), pointing to exchange rate differences as the main driver.

A breakdown presented by officials on Saturday showed that a large portion of what has been described as a “loss” is linked to accounting treatment rather than actual trading losses.

According to a report from 3news.com on May2, 2026, the Head of the Financial Markets Department at the Bank, Gershon Kudjo Agbledzorwu, revealed that about 83% of the total program cost comes from the difference between the forex bureau exchange rate and the Bank’s official rate used in recording transactions.

“About 83% of the cost was due to conversion from the forex bureau rate to the BoG official rate,” he said.

He also explained that gold purchased from small-scale miners is paid for in cedis using the forex bureau rate, which is typically higher than the official rate.

However, when the Bank records the transaction on its books, it uses the official exchange rate, creating a gap that is reflected as a cost.

The Bank further indicated that the cedi’s strong appreciation in 2025 widened this gap, thereby increasing the recorded cost by more than expected.

According to the Bank, the use of the forex bureau rate is a deliberate policy aimed at encouraging small-scale miners to sell through formal channels rather than deal with unlicensed foreign buyers.

The BoG noted that while this approach supports the formal gold market, the exchange rate differential represents the cost of maintaining that system.

SO/SEA