The Bank of Ghana (BoG) incurred a substantial loss of GH¢9.05 billion from its Domestic Gold Purchase Programme in 2025, a significant increase from the GH¢5.66 billion loss recorded in 2024, according to the bank’s recently released 2025 Financial Report. These losses encompass both the Gold for Reserves and Gold for Oil initiatives.
Context of the Gold Purchase Programme
The BoG’s Gold for Reserves Programme was designed to acquire doré gold, primarily for foreign exchange generation. The report clarifies that the gold acquired under this program was intended for rapid disposal rather than for long-term investment or price appreciation.
The financial outcomes of this program are directly tied to prevailing market prices at the time of sale. The reported loss reflects the difference between the acquisition cost of the gold and its net sale proceeds, after accounting for directly attributable selling costs and any interest earned on gold deposits.
Operational Details and Scale
In 2025, the bank purchased 2,914,305 fine ounces of doré gold, a notable increase from the 1,092,492 fine ounces bought in 2024. Correspondingly, sales also rose, with 2,895,426 fine ounces sold in 2025 compared to 1,076,125 fine ounces in the previous year.
Despite these substantial transactions, the bank’s closing doré gold holdings remained relatively small, amounting to 9,283 fine ounces as of December 31, 2025. This is a slight increase from the 7,311 fine ounces held at the end of 2024, reinforcing the program’s objective of quick turnover.
The net result recognized for the year directly represents the realized difference between the net sale proceeds and the carrying value of the gold that was disposed of. Interest income generated from gold deposits during the year contributed GH¢0.047 billion to the program’s financials.
Gold for Oil Programme Performance
The Gold for Oil Programme, which aimed to address foreign exchange needs and energy supply through commodity trading, also reported financial outcomes. The sale of gold under this initiative resulted in a net loss of GH¢0.544 billion. This figure represents the revenue from gold sales, less selling costs and the cost of gold sold.
While the gold component of the program incurred a loss, the oil trading activities associated with it generated a net gain of GH¢0.341 billion in 2025. This contrasts with a net loss of GH¢1.155 billion from oil trading in 2024, indicating an improvement in the oil segment’s performance.
The overall financial performance of the Gold for Oil Programme is a composite of gold trading margins, oil trading margins, and associated operational expenses incurred in meeting the program’s dual objectives of securing foreign exchange and ensuring energy supply.
Programme Discontinuation
The Bank of Ghana’s Gold for Oil Programme was discontinued in March 2025. The report indicates that the program’s results reflected the complex interplay of trading margins and operational costs inherent in managing commodity exchanges for macroeconomic stability.
Implications and Future Outlook
The significant losses reported by the Bank of Ghana from its gold purchase programs highlight the inherent volatility and risks associated with commodity-backed monetary policies. For stakeholders, this underscores the challenges in managing such initiatives effectively, especially in fluctuating market conditions.
The discontinuation of the Gold for Oil Programme suggests a potential reassessment of its strategy or effectiveness. The substantial increase in losses from the Gold for Reserves programme warrants close monitoring of the bank’s foreign exchange management strategies and its reliance on gold monetization going forward.
Moving forward, attention will be focused on the Bank of Ghana’s future monetary policy decisions, its approach to managing its gold reserves, and the potential implementation of alternative strategies to stabilize the currency and manage foreign exchange reserves without incurring such significant financial burdens.
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