GoldBod, BoG must split $1.7 billion gold loss - Economist

Senior Lecturer at the University of Ghana’s Department of Economics, Dr Adu Owusu Sarkodie, has called for the costs linked to Ghana’s Domestic Gold Purchase Programme (DGPP) to be shared between the Ghana Gold Board (GoldBod) and the Bank of Ghana (BoG).

Speaking on Channel One TV on Wednesday, August 19, 2026, Dr Sarkodie argued that losses should not be placed entirely on either institution, since both play distinct roles in the programme.

While the BoG provides financing, GoldBod handles the purchase and aggregation of gold, meaning losses can arise from the activities of both.

“Because it’s the BoG that is pre‑financing it, it will by all means sit in the books of BoG. So they should share the cost, because some of the purchases are done directly by GoldBod,” he explained.

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He clarified that losses from GoldBod’s direct purchases should be attributed to GoldBod, while losses linked to foreign exchange rate differentials in subsequent transactions should be borne by the BoG.

Dr Sarkodie also cautioned against interpreting the reported US$1.7 billion loss as a conventional cash loss, noting that the International Monetary Fund (IMF) classified it as a revaluation loss, reflecting changes in the value of gold and foreign exchange transactions.

“Some of the purchases are done directly by GoldBod. So, whatever the loss that has come from that angle is your loss. BoG then sells and because of the exchange rate differentials makes a loss, and that is BoG’s loss,” he stated.

His comments follow the IMF’s August 2026 report, which indicated that the DGPP recorded losses of more than US$1.7 billion in 2025, which is equivalent to about 1.5% of Ghana’s GDP.

The IMF classified the amount as a revaluation loss, which reflects changes in the value of gold and foreign exchange transactions.

DR/SA

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