The International Monetary Fund (IMF) has recently clarified an important detail regarding the reported figure of $214 million associated with Ghana's Domestic Gold Purchase Programme (DGPP). Contrary to some interpretations, this amount does not indicate a loss suffered by the Ghana Gold Board, often referred to as GoldBod. Instead, it represents a cost related to policy decisions made during a challenging economic period.
In a press briefing held in Washington, IMF Director of Communications, Julie Kozack, addressed inquiries stemming from the Staff Report for the Fifth Review of Ghana’s IMF-supported programme. She highlighted that while the DGPP has yielded notable macroeconomic gains, it has also led to what the IMF categorizes as a "quasi-fiscal loss." This term refers to expenses that are not formally recorded on the government's fiscal balance sheet, yet they effectively signify a financial burden on the state.
Ms. Kozack elaborated on the positive impacts of the DGPP, stating that it significantly contributed to growing international reserves and alleviated pressure on Ghana’s foreign exchange market during one of the nation’s most tumultuous economic phases. She remarked, "What we see is a contribution to a buildup of international reserves and reduced pressure on the foreign exchange market during a difficult period for Ghana."
The $214 million figure stems from various factors, including trading margins, fees, and fluctuations in exchange rates, which are typical elements of commodity-backed liquidity operations. In light of this, the IMF has advised that there should be greater transparency, improved governance, and better risk management practices. The organization recommended that these costs be reflected in the national budget rather than appearing solely on the Bank of Ghana’s balance sheet, to protect the central bank’s policy objectives.
This clarification from the IMF aligns with earlier statements from the Ghana Gold Board, which asserted that the figure does not denote an operational deficit or failure of the programme. The Fund’s evaluation confirms that this amount is a quasi-fiscal cost rather than a realized loss attributed to GoldBod or any single entity.
In parallel, the Governor of the Bank of Ghana has informed the Public Accounts Committee of Parliament that discussions are currently taking place among key stakeholders, including GoldBod, aimed at reinforcing and reforming the DGPP following the IMF’s review. These discussions are anticipated to focus on enhancing governance frameworks and establishing clearer coordination between the government, the central bank, and the Ghana Gold Board.
For GoldBod, the IMF's comments are viewed as a validation of the primary goals of the programme. The Board has consistently maintained that the DGPP was created as a strategic measure to bolster macroeconomic stability and optimize the benefits derived from Ghana’s gold resources, rather than merely aiming for immediate trading profits.
As the reforms move forward, GoldBod has reaffirmed its dedication to increasing transparency, accountability, and efficiency in future iterations of the programme.
