IMF warns BoG gold scheme could weaken central bank balance sheet

The International Monetary Fund has raised fresh concerns about the Bank of Ghana (BoG)’s Domestic Gold Purchase Programme (DGPP).

It warns that losses linked to the initiative are creating quasi-fiscal risks that could weaken the central bank’s balance sheet.

The warning came at the end of an IMF mission to Accra led by mission chief Ruben Atoyan.

The team assessed Ghana’s economic programme under the Extended Credit Facility and discussed a new Policy Coordination Instrument with government officials.

In a statement issued on Friday, the IMF acknowledged that Ghana’s economy has made strong gains in its recovery. It said inflation has declined rapidly, reserves have improved, confidence in the cedi has strengthened, and growth exceeded expectations in 2025.

But despite the positive outlook, the Fund cautioned that the Bank of Ghana’s gold programme could create financial vulnerabilities if not properly managed.

“Maintaining a forward-looking, prudent monetary policy is instrumental to firmly anchoring inflation expectations,” the IMF said.

It added that efforts to strengthen confidence in monetary policy “should focus on strengthening the central bank’s balance sheet.”

The IMF then directly flagged the Domestic Gold Purchase Programme.

“The losses associated with the Domestic Gold Purchase Programme (DGPP) underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet,” the statement said.

The Fund warned that future costs linked to the programme must be properly captured in the national budget to improve accountability.

“Efforts to protect the Bank of Ghana’s balance sheet from DGPP-related quasi-fiscal risks and budget recognition of future costs would help enhance accountability and oversight,” it stressed.

The IMF’s concerns come even as it praised Ghana for making “substantial stabilisation gains” under the current programme.

According to the Fund, fiscal performance has strengthened sharply, the debt ratio has declined, and investor confidence has improved following the successful return of domestic treasury bond issuance.

The IMF also confirmed that Ghana and the Fund have reached a staff-level agreement on policies to support a new non-financing 36-month programme aimed at sustaining reforms after the current bailout ends.

Still, the Fund warned that Ghana remains exposed to global shocks, especially from the war in the Middle East, which could push up energy, food, and fertiliser prices.

It also urged government to avoid “past policy slippages,” including recurring fiscal imbalances, rising debt, weak financial buffers, and reform reversals.

The IMF said sustaining prudent policies and accelerating reforms would be critical to preserving the gains achieved under the programme.

MyJoyOnline