The Bank of Ghana would have faced a significant loss of nearly GH¢33.2 billion in 2025 had it not been for the strategic sale of refined gold. This gold, largely accumulated through the Domestic Gold Purchase Programme (DGPP) in 2023 and 2024, effectively offset substantial accounting losses, turning a potential crisis into a reported deficit of GH¢15.63 billion.
A comprehensive analysis of the Bank’s audited 2025 Financial Statements by JoyNews Research reveals that a single bullion-gold transaction absorbed GH¢17.56 billion of potential losses. This crucial intervention occurred during a period marked by a depreciating cedi, rising fuel prices, and ongoing International Monetary Fund (IMF) negotiations, underscoring the delicate economic climate.
Context of the Domestic Gold Purchase Programme
The Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) was initiated to bolster the nation’s foreign exchange reserves by buying gold directly from local sources. This initiative aimed to reduce reliance on external borrowing and stabilize the local currency.
The period of 2023 and 2024, when much of the gold in question was acquired, was particularly challenging for Ghana’s economy. The cedi experienced considerable depreciation against major foreign currencies, leading to increased costs for imported goods and services, including fuel.
Simultaneously, Ghana was engaged in intensive discussions with the IMF for a bailout package to address its mounting debt and economic instability. The success of these negotiations was crucial for restoring investor confidence and securing financial assistance.
The Mechanics of the Gold Sale and Its Financial Impact
In 2025, the Bank of Ghana sold approximately 870,000 ounces of refined gold, equivalent to about 27 tonnes. The sale generated roughly US$3.6 billion, which translated into approximately GH¢40 billion in foreign exchange inflows.
This gold had been held on the Bank’s balance sheet for several years, having been purchased at lower global market prices. By the time of the sale in 2025, gold prices had risen significantly, creating a substantial profit margin.
The direct profit from the sale, representing the difference between the purchase price and the selling price, amounted to GH¢9.57 billion. This figure became the single largest source of income for the Bank in 2025, surpassing even the interest earned on its lending activities.
Accounting Quirks and Unrealized Gains
Central banks employ specific accounting practices for managing gold reserves. Gains from the appreciation of gold prices are not always immediately recognized as profit. Instead, they can be accumulated in special reserve accounts, often referred to as an ‘internal savings jar’.
During 2023 and 2024, strong global gold price performance led to a steady accumulation of unrealized gains in this reserve. These gains were directly linked to the gold holdings acquired under the DGPP.
When the bullion was sold in 2025, accounting standards mandated that these previously unrealized gains be transferred to the year’s income statement. This accounting adjustment added another GH¢7.99 billion to the Bank’s reported income.
Combined Effect and Loss Aversion
The combination of the direct sale profit (GH¢9.57 billion) and the released unrealized gains (GH¢7.99 billion) provided a total relief of GH¢17.56 billion for the Bank of Ghana in 2025.
Without this substantial contribution from gold sales, the Bank’s financial statements would have reflected a loss of approximately GH¢33.19 billion. The successful execution of the gold sale was therefore critical in mitigating a severe financial downturn for the central bank.
Implications and Future Outlook
The Bank of Ghana’s strategic use of its gold reserves highlights the importance of proactive reserve management, especially during periods of economic stress. The ability to leverage accumulated assets, such as gold, can provide a crucial buffer against significant financial losses.
This event also brings attention to the complexities of central bank accounting and the impact of commodity price fluctuations on financial stability. As Ghana continues its economic recovery, the management of foreign exchange reserves and the effectiveness of programs like the DGPP will remain under close scrutiny.
Moving forward, observers will be watching to see how the Bank of Ghana balances its reserve management strategies, its approach to domestic resource mobilization, and its efforts to rebuild confidence in the Ghanaian cedi. The performance of global gold markets and the Bank’s future gold acquisition and sales policies will be key indicators to monitor.
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