The Institute for Energy Policies and Research (INSTEPR) has attributed the reported GH¢2.4 billion losses incurred by the Bank of Ghana (BoG) under its gold purchase programme to structural and operational weaknesses, rather than political interference or corruption.

In a rejoinder addressing the ongoing public debate, and signed by INSTEPR’s Executive Director, Kwadwo N. Poku, INSTEPR said the recent disclosure by the International Monetary Fund (IMF) that the BoG recorded losses of GH¢2.4 billion over nine months did not come as a surprise to observers who had followed earlier warnings by the institute.

According to INSTEPR, similar losses had already been recorded under previous iterations of the gold purchase programme, even before the establishment of GoldBod, due largely to exchange rate differentials and the structure of local gold trading.

The institute explained that under the current arrangement, the Bank of Ghana provides funds to GoldBod, which does not purchase gold directly from small-scale miners but relies on registered agents. These agents buy gold from miners at prices pegged to international market rates, converted into cedis using negotiated exchange rates that often differ from the BoG’s internal rates.

INSTEPR noted that agents also factor in their margins and the cost of refining gold into doré bars, which is the only form GoldBod purchases. GoldBod, in turn, pays for the gold and related costs using BoG funds and earns a commission for facilitating the transactions.

“Standard business practice suggests that when the Bank of Ghana sells the gold procured through GoldBod, it should generate more revenue than was paid out, or at least break even,” the institute stated.

However, INSTEPR said the BoG failed to learn from similar losses recorded in 2023 and 2024. It cited a letter dated 7 July 2025 from the Bank of Ghana to INSTEPR, in which the Bank acknowledged losses of about GH¢1.8 billion on gold transactions, largely due to exchange rate differentials between local market prices and the Bank’s internal rates.

The institute criticised what it described as attempts by some civil society groups and government appointees to attribute the losses primarily to the Gold for Oil (G4O) initiative, noting that only a fraction of the GH¢2.1 billion loss recorded in 2024 was linked to oil transactions.

“We repeatedly warned that the challenges were not related to BOST or oil transactions, and that losses would recur in 2025, but these warnings were ignored,” INSTEPR said.

It further argued that profits recorded by other state entities involved in the programme do not negate the losses incurred by the central bank. INSTEPR cited the 2025 State Interests and Governance Authority (SIGA) State Ownership Report, which showed that in 2024 PMMC made a net profit of GH¢124.65 million, while BOST recorded GH¢318 million in profits, despite the BoG’s overall losses.

“GoldBod does not assume financial risk. It operates using the Bank of Ghana’s funds and earns a commission regardless of whether the Bank makes a profit or loss,” the statement noted.

INSTEPR stressed that the losses do not point to corruption or lack of transparency in the Gold for Oil programme but rather highlight the need for better trading expertise and improved operational frameworks.

The institute called on the Bank of Ghana to operate independently, free from political pressure, and to engage institutions with proven experience in commodity trading to help prevent future losses.