Dr John Kwakye is an advisor to the Bank of Ghana Governor
The Bank of Ghana (BoG) has announced plans to end its financing of the Ghana Gold Board (GoldBod) under a new gold policy, as part of efforts to reduce losses in the country’s gold trading operations.
According to the central bank, gold has been purchased from local miners at discounted prices rather than prevailing world market rates.
The International Monetary Fund (IMF), in its Staff Report for the Fifth Review of Ghana’s IMF-supported programme, revealed that losses incurred by the BoG from artisanal and small-scale doré gold transactions had reached US$214 million by the end of September 2025, equivalent to GH¢2.43 billion.
While GoldBod has recorded profits, the IMF noted that these gains came at the expense of the central bank, which absorbed the bulk of the programme’s losses.
Speaking at a Strategic Policy Session on De-risking Ghana’s Gold Trade, organised by the Economic Governance Platform (EGP) on Tuesday, February 3, 2026, Advisor to the Governor of the Bank of Ghana, Dr John Kwakye, explained that the BoG also pays commissions to GoldBod, further contributing to the losses.
BoG dismisses gold loss claims, cites IMF-backed macroeconomic gains
Despite the losses, Dr Kwakye noted that the programme enabled the central bank to accumulate nearly US$10 billion in reserves through gold trading.
“We shouldn’t forget that we are also making gains for the country as a whole by accumulating this large amount of reserves. This has helped stabilise the currency, and the benefits are reflected in overall macroeconomic stability,” he said.
He further attributed Ghana’s improving economic conditions and the decline in headline inflation to the strength of the country’s reserves.
Under the new arrangement, GoldBod will operate independently and receive direct funding from the government to purchase and refine gold from miners.
“GoldBod is going to act on its own, which means the government will have to provide initial funding. The Bank of Ghana will no longer do that. GoldBod will therefore be able to buy and refine gold directly from miners,” Dr Kwakye explained.
Parliament passed the Ghana Gold Board Bill, 2025, into law on Friday, March 28, 2025. The legislation mandates GoldBod to oversee, regulate, and manage the buying, selling, and export of gold and other precious minerals.
The law designates GoldBod as the sole exporter of gold from Ghana’s small-scale mining sector, effectively barring licensed traders and bullion dealers from exporting gold independently.
The establishment of GoldBod was initiated by President John Dramani Mahama as part of efforts to revitalise the local economy. The board operates under the Ministry of Finance.
Clause 68(1) of the Act prohibits the hoarding of gold without authorisation from GoldBod, a measure aimed at preventing scarcity, unfair competition, and price manipulation.
While direct buying and selling of gold on the open market is prohibited under the Act, foreigners may apply to GoldBod to purchase gold and act as off-takers. All gold purchases by foreigners must be conducted through GoldBod, which will handle exportation to destinations of their choice.
SA/MA
Understanding Ghana’s stock market and how to invest | BizTech
