Former Finance Minister Mohammed Amin Adam has accused the Bank of Ghana of using proceeds from gold sales to obscure the true extent of its financial losses in 2025. The allegations, made via a Facebook post on Friday, May 1, suggest that the central bank’s reported net loss of GHS15.6 billion would have been significantly higher without the inclusion of gains from gold transactions.
Context of Gold Reserves and Financial Reporting
The Bank of Ghana’s financial performance for 2025 has come under scrutiny following the release of its annual report. Central banks typically manage a mix of foreign currency reserves and gold to stabilize their currency and manage economic shocks. The value of these reserves can fluctuate, and transactions involving them can impact a central bank’s balance sheet and reported profits or losses.
In this instance, Dr. Amin Adam claims the Bank sold approximately 18 tonnes of Ghana’s gold reserves, which were reportedly accumulated under the previous New Patriotic Party administration. This sale is alleged to have generated around GHS40.3 billion in proceeds, with a net gain of GHS9.57 billion recognized in the bank’s profit and loss account.
Allegations of Strategic Reclassification
Dr. Amin Adam questions the justification for this sale, stating that the Bank described it as a reserve portfolio rebalancing exercise. However, he argues that there was no clear macroeconomic necessity for such a move, particularly given a prior policy framework aimed at increasing, not decreasing, gold reserves.
A key point of contention raised by the former minister is the reclassification of the GHS9.57 billion gain from equity to recognized income. He asserts that this maneuver was critical in presenting a less severe financial picture.
“Therefore, the GHS15.6 billion net loss reported in 2025 must be interpreted in context,” Dr. Amin Adam stated. “If these gold gains had not been recognised in the profit and loss account, the loss would have exceeded GHS25 billion.”
Monetary Operations and Sterilisation Costs
Beyond the gold sales, the article highlights the significant costs associated with the Bank’s monetary operations. Sterilisation costs, which involve measures taken to neutralize the inflationary impact of liquidity injections, amounted to GHS16.73 billion in 2025. These costs represent a substantial drain on the central bank’s resources.
According to the financial report cited by Dr. Amin Adam, the Bank of Ghana’s reported “strong policy solvency position” in 2025 was specifically bolstered by the substantial inflow from these gold sales. Without this injection, the bank’s operating income would have been insufficient to cover the high sterilisation expenses.
Defense of Domestic Gold Purchase Programme
In light of these concerns, Dr. Amin Adam defended the Domestic Gold Purchase Programme, introduced under former Vice President Mahamudu Bawumia. He described this initiative as a crucial buffer for the Bank of Ghana, suggesting it provided a necessary financial cushion.
He accused the current management of the Bank of Ghana of prioritizing public perception over sound financial management. The use of gold reserves to offset operational losses, he warned, merely conceals deeper underlying policy challenges.
Implications for Policy and Transparency
The allegations raise serious questions about the efficiency of monetary policy interventions and the transparency of the Bank of Ghana’s financial reporting. If the core losses are indeed masked by asset sales, it could indicate significant challenges in managing inflation and maintaining the stability of the Ghanaian economy.
Readers and industry observers will be watching closely to see how the Bank of Ghana responds to these accusations. The debate underscores the importance of robust financial oversight and clear communication regarding the management of national reserves and the true cost of monetary policy actions. The long-term implications could affect investor confidence and the perceived stability of Ghana’s economic management.
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