Gold Reserve Sales Prevent GH¢33 Billion Deficit for Bank of Ghana Amid Tight Monetary Policy

The Bank of Ghana avoided a GH¢33 billion loss in 2025 by selling gold reserves from its Domestic Gold Purchase Programme to stabilize the cedi.

By: AXL Media

Published: May 2, 2026, 7:28 AM EDT

Source: Information for this report was sourced from YEN.com.gh

Strategic Asset Liquidations Offset Operating Deficits

The Bank of Ghana (BoG) managed to contain its 2025 financial losses through the strategic sale of refined gold accumulated over the previous two years. While the central bank officially reported an operating loss of GH¢15.63 billion for the financial year, internal reports indicate the deficit would have been more than double that figure without active reserve management. A gain of GH¢9.57 billion from gold sales acted as a critical financial buffer, preventing a potential loss of nearly GH¢33.2 billion. This tactical use of reserves has been cited as a primary factor in maintaining the bank’s policy solvency despite broader economic pressures.

The Impact of the Domestic Gold Purchase Programme

The primary driver behind this financial mitigation was the Domestic Gold Purchase Programme (DGPP), which the BoG launched in June 2021. According to the bank’s directors, the programme was specifically designed to strengthen reserve buffers and reduce structural pressures on the demand for foreign currency. By acquiring gold domestically, the BoG has been able to augment its foreign exchange reserves without having to participate heavily in the domestic currency market. This strategy has allowed the bank to fund essential monetary operations that would have otherwise been nearly impossible to sustain under current economic conditions.

Stabilizing the Cedi Through Alternative Reserves

The DGPP has played a central role in anchoring the cedi and managing inflation in an environment of elevated interest rates and tight monetary policy. By building foreign exchange buffers through gold rather than currency acquisitions, the BoG eased the demand pressure on the cedi, contributing to a moderation in exchange rate volatility. Directors reported to the Finance Minister that the programme materially advanced reserve diversification, allowing the bank to reduce its dependence on foreign currency denominated assets while bolstering overall confidence in Ghana’s external economic position.