BoG’s losses worse than reported despite gold sales - Former Finance Minister

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• Ayariga 14 hours ago

  Grand theft and looting to enrich themselves headed by the Oga himself at Jubilee House.

  Grand theft and looting to enrich themselves headed by the Oga himself at Jubilee House.

  reply
• JESUS IS GOD 14 hours ago

  If anyone is in Christ, he is a new
  creation” — 2 Corinthians 5:17.
  Let Jesus make you new—open your
  heart and say yes to Him.

  If anyone is in Christ, he is a new
  creation” — 2 Corinthians 5:17.
  Let Jesus make you new—open your
  heart and say yes to Him.

  reply
• Od 14 hours ago

  You couldn't think outside the box and failed woefully when you were at helm of the ministry so shut up and watch better minds working positively for the good of the country

  You couldn't think outside the box and failed woefully when you were at helm of the ministry so shut up and watch better minds working positively for the good of the country

  reply
• Nii Ayitey 13 hours ago

  Here is a comprehensive analysis of the Bank of Ghana's financial losses and gold sales, structured according to your requested format.
  
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  Introduction
  
  The Bank of Ghana (BoG) faces a deepening financial crisis, evi ...
  read full comment

  Here is a comprehensive analysis of the Bank of Ghana's financial losses and gold sales, structured according to your requested format.
  
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  Introduction
  
  The Bank of Ghana (BoG) faces a deepening financial crisis, evidenced by widening operating losses and negative equity. According to its 2025 Annual Report, the Bank posted a net loss of GH¢15.63 billion for 2025 — a 65% increase from GH¢9.49 billion in 2024. At the group level, which includes subsidiaries, losses rose to GH¢15.29 billion. The central bank’s financial position deteriorated further, with negative equity of GH¢93.82 billion at the end of 2025 — up from GH¢58.62 billion in 2024. The BoG has stated it will restore its capital base by 2032 through a phased recapitalisation programme.
  
  The Domestic Gold Purchase Programme (DGPP), launched in 2021, was designed as a strategic initiative to support foreign reserves and currency stability amid the domestic debt exchange programme and restricted access to capital markets. However, the gold programmes have themselves incurred significant losses, raising questions about their structure and management.
  
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  Background Information
  
  The BoG’s financial strain is not new. In 2022, the central bank reported a record GH¢60.9 billion loss, primarily due to impairments on government securities and exchange rate revaluations. Losses continued into 2023 (GH¢10.5 billion) and 2024 (GH¢9.48 billion), marking four consecutive years of financial pressure.
  
  Global economic trends, including post-COVID recovery challenges, the Russia-Ukraine war, rising global inflation, and restricted access to international capital markets, severely constrained Ghana’s ability to borrow externally. These conditions forced the BoG to explore alternative reserve-building strategies, including the DGPP. Simultaneously, global gold prices surged — from approximately US$2,000/oz in 2023 to US$3,400/oz in 2025 — making gold a particularly attractive asset. Rising gold export receipts also contributed to a trade surplus of US$13.66 billion in 2025** and pushed gross international reserves past **US$13 billion. Yet, despite these gains, the central bank’s balance sheet remains strained, largely due to costly monetary policy interventions, including open market operation expenses of GH¢16.73 billion in 2025.
  
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  Analysis of Gold Sales
  
  Volume, Value, and Timing
  
  The BoG’s gold purchases expanded dramatically under the Domestic Gold Purchase Programme (DGPP):
  
  Year Volume Purchased Purchase Value Cumulative Losses
  2022 3.47 tonnes US$194 million GH¢74 million
  2023 37.02 tonnes US$1.55 billion GH¢1.37 billion
  2024 56.47 tonnes US$4.07 billion GH¢5.66 billion
  2025 110.99 tonnes US$11.39 billion (Under audit)
  
  By end-June 2025, the BoG had purchased 145.95 tonnes of gold, of which 86.77 tonnes had been sold to raise foreign exchange for reserves and cedi support, and 27.63 tonnes had been used for the Gold for Oil (G4O) initiative. Gold purchases cost the programme rose from GH¢5.7 billion in 2024 to GH¢9 billion in 2025.
  
  Regarding the specific 18-tonne gold sale in 2025, proceeds totalled approximately GH¢40.3 billion, with a reported net gain of GH¢9.57 billion.
  
  Sufficiency of Proceeds to Offset Losses
  
  Proceeds from gold sales appear insufficient to offset overall reported losses. A net loss of GH¢9.05 billion was recorded on gold transactions alone in 2025. Gold sales contributed a total net gain of just GH¢9.57 billion — which, while substantial, falls far short of bridging the GH¢15.63 billion net loss currently reported, and only covers the most immediate gold-related transactional deficits.
  
  External Factors Influencing Revenue
  
  Gold price fluctuations significantly impact programme revenue. In 2025, gold prices surged by nearly 50% to US$3,400 per fine ounce as geopolitical tensions intensified. This environment generated historically high export receipts but also exposed the BoG to **valuation mismatches** when selling gold. Additionally, the IMF flagged that operational costs linked to GoldBod — including off-takers’ fees and trading shortfalls — drove losses under the Gold-for-Reserves programme to **US$214 million within the first nine months of 2025**.
  
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  Assessment of Financial Reporting
  
  Methodologies and Controversies
  
  The BoG’s approach to financial reporting has generated considerable debate. In its 2025 financial statements, the Bank recorded a GH¢9.57 billion gain from gold sales, reclassifying it from equity to realised income. Critics argue this effectively masked the true extent of financial losses. Former Finance Minister Dr Mohammed Amin Adam alleged that without recognising these gold sale gains in the profit and loss account, the reported loss would have exceeded GH¢25 billion.
  
  Discrepancies and Underreporting Concerns
  
  Several discrepancies have emerged:
  
  · IMF report flagged US$214 million in Gold-for-Reserves losses for the first nine months of 2025, citing trading losses and GoldBod fees as major drivers.
  · GoldBod and the BoG, however, rejected these figures as “premature and speculative,” noting that the 2025 audit (undertaken by an external auditor, reportedly PwC) was not yet complete.
  · The BoG’s own RTI response revealed cumulative gold purchase losses of GH¢7.1 billion between 2022 and 2024, broken down as G4O losses and G4R losses.
  · Different loss categories also emerge when distinguishing between direct gold purchase losses (ASM-related) from overall programme costs. In 2024, for instance, total gold purchase programme losses were reported as GH¢5.66 billion, but this figure included both direct ASM losses (GH¢4.84 billion) and broader transaction costs.
  
  Expert Opinions and External Audits
  
  The BoG noted that external audits are a standard legal requirement, and that figures for 2025 remain unaudited, meaning conclusions about gold operations should be drawn only after auditor verification (the 2025 audit, reportedly conducted by PwC, was ongoing as of the report’s release). Additionally, political commentators have highlighted inconsistencies: Kojo Oppong Nkrumah accused the current administration of defending the very practices it criticised while in opposition, while others, including Minority representatives, have pointed to changing positions that “muddy the waters and undermine public trust”.
  
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  Implications of Underreported Losses
  
  Impact on Stakeholders
  
  · Government Entities: The government has committed to recapitalising the BoG through a phased plan running from 2026 to 2032. Until then, negative equity imposes constraints on the central bank’s operational flexibility.
  · Investors: While international reserves have grown, transparency concerns around gold programme losses raise sovereign risk perceptions. Delayed and contested loss figures, alongside governance complaints from institutions like the Institute for Public Policy and Accountability, could influence credit ratings and future borrowing costs.
  · The Public: Widespread confusion over conflicting loss figures — GH¢15.6 billion reported operating loss vs. GH¢25 billion potential actual loss — erodes public trust in the custodianship of national assets.
  
  Erosion of Public Trust and Fiscal Policy Concerns
  
  Controversies over gold programme losses, the IMF warning about the “significant downside risks” of the rapidly expanding scale of the programme, and conflicting figures have already weakened confidence in the Bank’s governance. As one analysis noted, “Silence in the face of loss corrodes trust faster than loss itself”. Questions about the strategic use of gold sales — particularly the 18‑tonne gold sale — and whether reserves are being depleted for operational cover rather than genuine portfolio rebalancing may further undermine the BoG’s credibility as an independent monetary authority.
  
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  Recommendations for Improvement
  
  Enhancing Transparency and Financial Reporting
  
  1. Immediate Full Disclosure: Pressure from pending RTI lawsuits and parliamentary demands for transparency highlights that immediate full disclosure of gold programme terms and transaction details is critical.
  2. Independent Forensic Audit of Gold Operations: The Bank’s unaudited 2025 gold operations require a fully independent forensic audit to verify loss figures and assign responsibility. The BoG’s own defense that “figures remain speculative until audited” underscores the necessity for this verification.
  3. Clarify Accounting Methodologies: Publish a detailed explanation of how gold sale gains are classified and why the GH¢9.57 billion proceeds from the 18‑tonne sale were recognised as realised income rather than as an equity adjustment.
  
  Policy and Governance Reforms
  
  1. Reform Gold Programme Pricing and Intermediation: The IMF has highlighted that intermediation fees, trading shortfalls, and off-taker discounts drive losses in the gold programme. Reducing these fees and aligning pricing with market fundamentals should be a priority.
  2. Restrict Use of Gold Sales for Operational Cover: Policy should prohibit the classification of gold reserve sales as operational income unless strictly linked to a genuine reserve rebalancing strategy validated by external audit.
  3. Strengthen Parliamentary Oversight: The BoG’s financial statements and gold programme performance should be subject to mandatory parliamentary review. Concerns over delays in publishing audited accounts (a statutory reporting extension was granted in 2025) have already drawn criticism.
  
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  Conclusion
  
  The Bank of Ghana’s financial health is under significant strain, with losses widening to GH¢15.63 billion in 2025 and negative equity rising to GH¢93.82 billion. While gold sales — particularly the 18-tonne and 110.99-tonne annual purchases — contributed substantial proceeds, proceeds appear insufficient to offset overall losses, and accounting treatments have sparked allegations of underreporting.
  
  For Ghana to maintain investor confidence and economic stability, it is critical that the BoG’s financial reporting becomes fully transparent. The ongoing external audit of 2025 gold operations must be completed swiftly, and its findings must be publicly disclosed without qualification. Only through such accountability can the BoG restore the public trust essential for its independence and effectiveness in fostering long-term economic resilience.

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• RainMaker 12 hours ago

  A central bank, and as a matter of fact - Bank of Ghana, is driven by policy mandates (like controlling inflation or maintaining employment). Profit is a byproduct, not the goal.
  
  BoG is legally allowed Policy Discretion, a ...
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  A central bank, and as a matter of fact - Bank of Ghana, is driven by policy mandates (like controlling inflation or maintaining employment). Profit is a byproduct, not the goal.
  
  BoG is legally allowed Policy Discretion, and if there are ‘losses’ it is viewed as a necessary cost of fighting inflation, not a criminal or civil lapse.
  
  It enjoys sovereign immunity or specific statutory protections. BoG has no Fiduciary Duty to Ghanaian citizens to make a profit. Actually, it is common for a central bank to actually survive with negative equity—meaning its liabilities exceed its assets.
  
  It is clear that Bank of Ghana, or any central bank, has the unique power to issue currency - it doesn't "run out of money" to pay its bills. As long as the public trusts the currency, the BoG can keep functioning. Eventually, it usually "earns" its way back to a positive balance through Monetary Seigniorage (the profit made by issuing currency) or Inflation Seigniorage (The "Inflation Tax").
  
  I think the only time Ghanaians can ‘accuse’ BOG of any issue (losses) is:
  - If the BoG acts outside its legal authority (e.g., performing tasks not permitted by its charter).
  
  - If officials personally enrich themselves or commit intentional misconduct.
  
  - Whether (if it actually happen) the bank's bond-buying programs exceed their legal mandate which may call for a review by a higher court.
  
  The former minister of finance can't really "accuse" the Bank of Ghana of losses because their "losses" are often the result of intentional policy. So, if BoG loses billions because – for example - interest rates rose or due to some fiscal policy, it’s seen as a line item in a policy strategy, not a failure of business management.
  
  Mr. former minister of finance, playing politics at this level is quite suspect (and I have no interest in you or anyone else). You actually may know the facts/truth stated here.

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• Jay in London 12 hours ago

  UNDER AMIN PUBLIC SECTOR INFRACTIONS WERE THE ORDER OF THE DAY.
  
  UNDER NPP, GHANAIANS WERE WORSE OFF DESPITE THEIR SO CALLED GOLD FOR OIL POLICY.
  UNDER THE NDC, GHANAIANS ARE ENORMOUSLY BETTER OFF COMPARED WITH UNFDER THE ...
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  UNDER AMIN PUBLIC SECTOR INFRACTIONS WERE THE ORDER OF THE DAY.
  
  UNDER NPP, GHANAIANS WERE WORSE OFF DESPITE THEIR SO CALLED GOLD FOR OIL POLICY.
  UNDER THE NDC, GHANAIANS ARE ENORMOUSLY BETTER OFF COMPARED WITH UNFDER THE NPP.
  
  THE TASTE OF THE PUDDING IS IN THE EATING, AMIN, SO JUST SHUT IT, WILL YOU?
  THE CURRENT NPP STRATEGY IS ALWAYS WAITING IN THE WINGS, SNIFFING FOR ANY NEGATIVITY TO POUNCE UPON.
  THE AKOSPMBP TRAGEY WAS OPPORTUNISTICALLY POUNCERD ON BY THE NPP.
  THE NPP DO NOT CARE ABOUT GHANA. THEY ONLY CARE ABOUT POLITICAL POWER SO IF IT TAKES SABOTAGING GHANA FOR POLITICAL POWER, SO BE IT.
  DO YOU RULE /A NATION WITH SUCH ATTITUDE?
  
  THE CURRENT NPP CROP WANTS POLITICAL POWER FOR SELF-SEEKING GAINS.
  LOOK AT A PATTERN. NEARLY ALL NPP PROJECTS ENDED UP IN A HALT OR A SCANDAL.

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• Forlifive 12 hours ago

  Oh shut up. Npp you have mouth to talk right. Wicked people

  Oh shut up. Npp you have mouth to talk right. Wicked people

  reply
• Deep Analyst 25 minutes ago

  Danduruwa. Go bring Ofori Atta and stop the buffoonery.
  Leave NDC to work. At the end of 2028, Ghanaians will decide if they want NPP back. Avuu

  Danduruwa. Go bring Ofori Atta and stop the buffoonery.
  Leave NDC to work. At the end of 2028, Ghanaians will decide if they want NPP back. Avuu

  reply
• Korbla 11 hours ago

  So what businesses know is that we have achieved stability and we can plan. My question to the minister is that what did the Npp do when it was given power? Crazy people! Just shut up and don't bring back the dark memories of ...
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  So what businesses know is that we have achieved stability and we can plan. My question to the minister is that what did the Npp do when it was given power? Crazy people! Just shut up and don't bring back the dark memories of ur economy mismanagement which unleashed suffering on us. Pack urself

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• Awal Mohammed 11 hours ago

  They were printing counterfeit cedis. Useless NPP and that idiot thief Ernest Addison

  They were printing counterfeit cedis. Useless NPP and that idiot thief Ernest Addison

  reply
• WHY 10 hours ago

  Why does the BoG’s incur losses in the first place?

  Why does the BoG’s incur losses in the first place?

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• DEEVINITY 10 hours ago

  So what do you want us to do??? Climb Afadzato???Mtsewwww

  So what do you want us to do??? Climb Afadzato???Mtsewwww

  reply
• Afua....Sharp Brain 9 hours ago

  Really Economist speaking
  High Brain power at work

  Really Economist speaking
  High Brain power at work

  reply
• ObuasiMan 9 hours ago

  The former finance minister suddenly forgets about the DDEP 50% haircut in 2023 that cost GH¢67 billion under his party’s watch.

  The former finance minister suddenly forgets about the DDEP 50% haircut in 2023 that cost GH¢67 billion under his party’s watch.

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• Naneama!!!! 8 hours ago

  See kettle calling pot black. Is it profit-and-loss accounting that determines the net balance? If they made a net profit from Gold sales that reduced their net loss, what's strange about that? Did your government not sell go ...
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  See kettle calling pot black. Is it profit-and-loss accounting that determines the net balance? If they made a net profit from Gold sales that reduced their net loss, what's strange about that? Did your government not sell gold reserves? I thought this need to rebalance gold reserves was explained in detail all over the airwaves last year.
  Need you talk about everything? Do you not realise you disgrace yourselves with all these comments.

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• Achakanapaya 3 hours ago

  The most useless caricature in the npp is this idiot.
  Where is Ofori Atta???
  Shameless, dishonest, criminals.
  Npp Nation wreckers organization never again Allah.

  The most useless caricature in the npp is this idiot.
  Where is Ofori Atta???
  Shameless, dishonest, criminals.
  Npp Nation wreckers organization never again Allah.

  reply