Economist and University of Ghana Professor, Godfred Bokpin, has cautioned that the financial losses recorded under the Bank of Ghana’s (BoG) Domestic Gold Purchase Programme (DGPP) could eventually require taxpayers to bear the cost of recapitalising the central bank.

Prof. Bokpin said describing the losses as a transaction cost does not diminish their impact on the BoG’s financial position. According to him, the losses have affected the central bank’s equity and could therefore create an obligation for the state to provide additional capital.

“So we recognise that these losses are quite huge for us. And remember, whilst you say that this is a transaction cost, this is an accounting loss. It is manifesting in a draft equity position of Bank of Ghana, which requires you and I as taxpayers to recapitalise the central bank,” he said.

Speaking on Channel One TV on Wednesday, August 19, Prof. Bokpin acknowledged that the DGPP has contributed to bringing gold-related activities into the formal economy, helping to curb gold smuggling and improve foreign exchange inflows. However, he argued that these benefits should not distract from the financial cost of the programme.

“The fact that it has helped to crowd in gold-related efforts, should not cause us to lose sight or conscious of the fact that it has also come at a certain huge cost that we should be able to address,” he said.

Prof. Bokpin also criticised the increasing use of the central bank’s balance sheet to undertake quasi-fiscal activities, warning that such practices could undermine the financial health of the institution.

“My position on this one has been that the way and manner we are systematically sacrificing the balance sheet of Bank of Ghana through quasi-fiscal activities is not helpful,” he said.

His comments come amid a growing political and economic debate over losses associated with the DGPP and the role of GoldBod in the programme.

An International Monetary Fund assessment reported that the programme recorded losses of more than US$1.7 billion, equivalent to 1.5% of Ghana’s GDP, in 2025.