Gold purchase programme was designed to make losses - Senyo Hosi explains

Economic analyst Senyo Hosi has said Ghana’s domestic gold purchase programme was designed to make losses because its primary objective was to curb gold smuggling and bring more gold into the formal market.

He explained that the government had to offer gold traders competitive prices to incentivise them to sell their gold in Ghana rather than smuggle it across the border.

“The whole programme was designed to make losses,” he stated.

According to Hosi, one of the key challenges was the disparity between the Bank of Ghana’s official exchange rate and the rate prevailing on the informal foreign exchange market.

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He said gold traders would be unwilling to sell their gold to the government if they could secure a better exchange rate elsewhere.

“If you decide to buy at 11 and the real rate is 12, it means the people are taking a 10% haircut. They will not give you the gold,” he said.

He explained that the Bank of Ghana therefore had to offer a higher exchange rate to attract gold onto the formal market.

However, when the foreign exchange generated from the gold was subsequently sold at the lower official rate, the central bank incurred losses.

“You create an economic incentive by paying the 12. Now, when you come and sell it at 11, you will naturally make a loss,” he explained.

Hosi said the exchange rate disparity contributed significantly to the losses recorded under the programme, including the reported $1.7 billion loss.

He therefore called on the Bank of Ghana and the government to address the gap between the official and informal foreign exchange rates.

According to him, narrowing the disparity would help reduce losses while encouraging more market participants to use the formal foreign exchange market.

GoldBod Controversy: The whole Domestic Gold Purchase Programme (DGPP) was designed to make losses. - Senyo Hosi, Economic policy analyst, explains #TheKeyPoints #TV3GH pic.twitter.com/NSdVap2we5

— #TV3GH (@tv3_ghana) August 22, 2026