INSTEPR Urges BoG to Engage Experienced Traders After GHS 2.4bn Gold Transaction Losses
The Institute for Energy Policies and Research (INSTEPR) has called on the Bank of Ghana (BoG) to enlist institutions with proven expertise in commodity trading to help prevent a recurrence of losses under its gold purchase programme.
In a statement reacting to the reported US$214 million (about GH¢2.4 billion) losses incurred by the central bank in its gold transactions with GoldBod under the Gold for Reserves policy, INSTEPR said basic trading principles require that the sale of gold should at least break even, if not generate a surplus.
“Standard business practice suggests that when the Bank of Ghana sells the gold procured through GoldBod, it should generate more revenue than was paid to GoldBod or at least break even,” the think tank said.
INSTEPR noted that the BoG had already acknowledged similar losses in earlier years, arguing that lessons from those episodes were not applied. In a letter dated July 7, 2025, the Bank reportedly informed INSTEPR that losses of about GH¢1.80 billion were recorded on gold transactions in 2023 and 2024, largely due to exchange rate differentials between local gold market prices and the Bank’s internal rates.
According to the policy institute, the current leadership of the BoG and the government have failed to adequately confront the operational weaknesses of the gold purchase programme, instead attributing most of the losses to the Gold for Oil (G40) initiative.
The institute criticised what it described as politically motivated commentary by some civil society groups and government appointees, which it said had obscured the structural drivers of the losses.
“We have repeatedly raised alarms on various media platforms, warning that the challenges were not related to BOST or the oil transactions, and that losses would recur in 2025, but our concerns fell on deaf ears,” the statement said.
INSTEPR further emphasised the need for the BoG to operate independently, free from political pressure, to protect the stability of the currency and banking system.
“While the gold purchase programme is a commendable initiative, proper modalities must be established to prevent the losses associated with gold trading,” it added.
GoldBod profits do not negate BoG losses
Citing the 2025 State Interests and Governance Authority (SIGA) State Ownership Report, INSTEPR pointed out that while the BoG recorded a GH¢2.1 billion loss in 2024 from the gold purchase and Gold for Oil programmes, other state institutions posted profits. Precious Minerals Marketing Company (PMMC)/GoldBod reported a net profit of GH¢124.65 million, while the Bulk Oil Storage and Transportation Company (BOST) recorded GH¢318 million in net profit.
The institute argued that GoldBod’s profitability does not contradict the existence of losses at the central bank.
“GoldBod does not have operational funds; it earns a commission based on the Bank’s money, thus assuming no financial risk,” INSTEPR said, adding that GoldBod profiting “does not mean the Bank of Ghana is not making losses.”
It concluded that the 2024 losses should not be construed as evidence of corruption or opacity within the Gold for Oil programme.
Structural issues in gold procurement
INSTEPR also outlined what it described as inherent weaknesses in the gold procurement framework.
It explained that the BoG provides funds to GoldBod to purchase gold, but GoldBod relies on registered agents—rather than buying directly from small-scale miners. These miners typically price gold using international dollar prices converted into cedis at exchange rates they deem acceptable, which often differ from the BoG’s official rate, before negotiating discounts.
Agents then factor in their margins and processing costs to produce dore bars, which are the only form of gold purchased by GoldBod. All associated costs, including commissions paid to GoldBod, are funded by the BoG.
According to INSTEPR, these structural arrangements, if left unaddressed, will continue to expose the central bank to trading losses, underscoring the need for stronger pricing, risk management and trading expertise within the gold purchase programme.
