The GH¢21.89 billion loss recorded under the Domestic Gold Purchase Programme (DGPP) in 2025 represents an accounting adjustment rather than a direct cash expense, according to persons familiar with the programme and the Bank of Ghana (BoG).

JOYBUSINESS understands that the adjustment largely arose from the difference between the exchange rate used to acquire gold from miners and the official rate at which the gold was recorded in the Bank’s books.

The exchange rate gap accounted for about 87% of the total gross programme cost.

The figure was published by the Bank of Ghana alongside a reconciliation showing how the GH¢21.89 billion charge resulted in a net cost of GH¢9.05 billion recognised in the Bank’s accounts.

Sources explained that gold is acquired from miners at prevailing market rates.

The same gold is then recorded in the Bank’s books at the official Bank of Ghana rate.

The difference between the two rates creates the accounting adjustment.

Why gold is bought at the market rate

Sources say buying gold below the prevailing market price would not necessarily reduce the cost to the state.

“It rather displaces the gold into informal channels,” they explained.

The sources said artisanal and small-scale gold is acquired in a competitive market, where the main competing purchaser is the smuggler.

They also linked the decision to the need to keep gold within the formal economy.

According to information available to JOYBUSINESS, official artisanal and small-scale gold exports declined by 91% within a year following the introduction of a 3% withholding tax in 2021.

The DGPP, however, generated US$13.8 billion in reserves from domestic gold production rather than external borrowing.

Why the adjustment increased in 2025

The framework for the programme remained unchanged, but two factors increased the size of the accounting adjustment in 2025.

The cedi appreciated by approximately 40.7% during the year. This widened the difference between the market acquisition rate and the official recording rate.

At the same time, the programme nearly doubled in volume.

Gold acquired under the programme increased from 56.47 tonnes in 2024 to 110.99 tonnes in 2025, with a value of US$11.4 billion.

The exchange rate divergence averaged below 5% in 2024 but rose to approximately 12% in 2025, with a considerably wider gap in the second half of 2025.

Why BoG recognised GH¢9.05bn

The GH¢21.89 billion represents the gross programme cost.

From that amount, GH¢5 billion represents the government’s cost share. That portion was borne by government and therefore does not constitute a Bank of Ghana charge.

A further GH¢7.9 billion in realised gains from gold bullion sales was also deducted.

The resulting GH¢9.05 billion represents the net cost borne by the Bank of Ghana and is the amount recognised in its profit and loss account.

Sources therefore stressed that both figures are accurate.

The GH¢21.89 billion is the gross programme cost, while the GH¢9.05 billion is the Bank’s net share of that cost.

They also said the transaction charges and exchange-rate gap are being addressed through structural reforms.

IMF did not independently discover figure

Sources further clarified that the GH¢21.89 billion figure published by the International Monetary Fund did not originate from an independent IMF calculation.

The figure was provided by the Bank of Ghana during the preparation and auditing of its 2025 accounts and was subsequently shared with the Fund as part of programme reporting.

The same GH¢21.89 billion figure also appears in the Bank’s public education materials issued alongside its 2025 financial results, together with the reconciliation to GH¢9.05 billion.

The sources said that the figure published by the IMF and the one published by the Bank are therefore the same figure, expressed in different currencies.