BY Daniel Bampoe
The Bank of Ghana has acknowledged that its flagship Gold-for-Reserves (G4R) initiative has generated cumulative losses of nearly GH¢4.9 billion over two years, intensifying parliamentary scrutiny over the programme’s cost structure even as the Central Bank insists the policy remains strategically vital to the economic stability.
Appearing before Parliament’s Public Accounts Committee (PAC) in Accra, Governor Dr. Johnson Pandit Asiama disclosed that the Central Bank recorded losses of GH¢1.054 billion in 2023 and a much steeper GH¢3.893 billion in 2024 under the gold accumulation programme.
He explained that the 2025 figures were still undergoing audit and had not yet been finalised, underscoring that the full financial impact of the initiative is still emerging.
The Gold-for-Reserves programme was introduced in 2021 as part of broader efforts to shore up the foreign exchange buffers, diversify reserve assets away from traditional currencies, and stabilise the cedi amid persistent balance-of-payments pressures.
Under the scheme, the Bank of Ghana purchases domestically produced gold—largely from the artisanal and small-scale mining sector—either to refine and add to national reserves or to sell internationally for foreign exchange.
Despite the reported losses, Dr. Asiama told lawmakers that the programme had delivered measurable gains in reserve accumulation.
He revealed that Ghana’s gold holdings had grown to 110.99 tonnes by 2025, with an estimated market value of about US$11.399 billion.
According to the Governor, this expansion in reserves highlights the strategic value of the programme and explains why the Central Bank does not consider it a policy failure.
He cautioned against framing the issue as a search for culprits, urging instead a collective national effort to refine the programme.
Dr. Asiama described the losses as substantial but manageable, arguing that the debate should focus on reforming the structure of the initiative rather than abandoning it altogether.
In his view, the G4R scheme continues to meet its core objective of strengthening reserves, even though its current design has exposed the Central Bank to significant financial strain.
A major concern raised during the PAC hearing was the burden of quasi-fiscal costs being carried by the Bank of Ghana.
The Governor explained that several expenses associated with the programme were not explicitly budgeted for, forcing the Central Bank to absorb costs that would ordinarily fall under government expenditure.
He warned that this arrangement was unsustainable and called for such costs to be transparently captured in the national budget to ease pressure on the Central Bank’s balance sheet.
Dr. Asiama also outlined steps already being taken to stem further losses.
According to him, certain charges linked to the programme have been reduced, while additional efficiency-enhancing reforms are under review.
He maintained that the solution lies in tightening operations and eliminating inefficiencies, not in shutting down the programme altogether. Proper budgeting of the scheme’s quasi-fiscal elements, he added, would go a long way in improving its long-term sustainability.
The PAC session also exposed challenges related to delayed budgetary support.
Committee Chairperson Abena Osei-Asare disclosed that although US$217 million was allocated in the 2025 Budget for Gold Board operations, no funds were released between January and September of that year.
As a result, the Bank of Ghana had to sustain trading activities in the interim, effectively financing the programme on its own until cash was finally provided in December.
Osei-Asare stressed that such delays place undue strain on the Central Bank and complicate efforts to manage costs effectively.
She supported calls for reforms aimed at improving coordination, ensuring timely releases of funds, and strengthening oversight of the Gold-for-Reserves framework.
