The Bank of Ghana (BoG) has tightened controls and reduced transaction costs under its Domestic Gold Purchase Programme (DGPP) following the recording of audited losses over several years.
Appearing before Parliament’s Public Accounts Committee, Governor Dr Johnson Pandit Asiama said the programme, introduced in 2021, was designed as a stabilisation measure during a period of severe foreign exchange pressure, rather than as a profit-driven initiative.
“Since the inception of the DGPP, the Bank of Ghana deliberately carried the financial burden of a national strategic policy in the national interest,” he stated.
Dr Asiama acknowledged that the Bank recorded losses between 2022 and 2024, attributing them to timing mismatches between domestic gold purchases and international sales, foreign exchange conversion effects, and structural costs associated with dore gold transactions.
“These losses should be understood within the context of a stabilisation mandate operating under extreme market stress,” he explained.
The Governor dismissed claims that the central bank bought gold at inflated prices and sold it at lower values, stressing that all transactions were conducted at prevailing market rates.
“To be clear, the narrative that the Bank ‘buys gold at high prices and sells at low prices’ is incorrect,” he said.
He noted that significant reforms were implemented in 2025, including the ring-fencing of gold proceeds, stricter settlement requirements, and reduced fees.
Under the new framework, gold shipments are now contingent on full upfront payment or bank guarantees, while off-taker discounts, agent fees, and assay charges have been reduced, cutting total transaction costs to approximately 1.7 per cent.
“It is evident that the cost structure has improved through reductions in discounts, agent fees, and assay charges,” Dr Asiama told the Committee.
Looking ahead, he said further reforms are planned for 2026, including the introduction of structured hedging mechanisms, renegotiation of costs, and a gradual withdrawal of direct Bank of Ghana funding.
“The Domestic Gold Purchase Programme did not begin in 2025, nor has it been abandoned,” the Governor emphasised, adding that the programme is being refined to ensure long-term sustainability.
