In a significant clarification, the International Monetary Fund (IMF) has stated that the $214 million figure associated with Ghana's Domestic Gold Purchase Programme (DGPP) should not be interpreted as a loss for the Ghana Gold Board (GoldBod). Instead, this amount reflects a policy-driven accounting cost.
The IMF underscored the importance of the DGPP in stabilizing Ghana’s economy during a particularly turbulent time. In a recent press conference held in Washington, Julie Kozack, the IMF’s Director of Communications, addressed inquiries stemming from the Staff Report for the Fifth Review of Ghana’s IMF-supported programme.
Kozack elucidated that while the DGPP has yielded notable macroeconomic advantages, it has also led to what the Fund refers to as a ‘quasi-fiscal loss.’ This term denotes a cost that, while not formally recorded on the government’s fiscal balance sheet, ultimately represents a financial burden on the state.
According to Kozack, the DGPP played a vital role in increasing international reserves and alleviating stress on the foreign exchange market during one of Ghana’s most trying economic periods. "On the benefit side, we observe a contribution towards enhancing international reserves and diminishing pressure on the foreign exchange market in times of difficulty for Ghana," she remarked.
The $214 million figure is attributed to factors such as trading margins, fees, and fluctuations in exchange rates—elements that are inherent to liquidity operations backed by commodities. Consequently, the IMF recommends enhancing transparency, governance, and risk management practices. They suggest these costs be included in the national budget rather than appearing solely on the balance sheet of the Bank of Ghana to protect the central bank’s policy mandates.
This clarification from the IMF aligns with earlier statements from the Ghana Gold Board, which maintained that the reported figure does not indicate any operational loss or failure of the programme. The Fund's assessment corroborates that this amount reflects a quasi-fiscal cost rather than an actual deficit attributable to GoldBod or any specific entity.
In the meantime, the Governor of the Bank of Ghana has informed Parliament’s Public Accounts Committee that discussions are ongoing among crucial stakeholders—including GoldBod—aimed at enhancing and reforming the DGPP in light of the IMF review. These conversations are expected to prioritize improved governance structures and better coordination among the government, the central bank, and the Ghana Gold Board.
For GoldBod, the IMF’s comments are viewed as a confirmation of the programme’s fundamental objectives. The Board has consistently asserted that the DGPP was designed as a strategic measure to promote macroeconomic stability and maximize value from Ghana’s gold resources, rather than merely to generate immediate trading profits.
As the reforms move forward, GoldBod has reiterated its commitment to achieving greater levels of transparency, accountability, and efficiency in the upcoming phases of the programme.
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