The International Monetary Fund (IMF) has expressed renewed concerns over the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), cautioning that related losses are generating quasi-fiscal risks that may strain the central bank’s balance sheet.
This warning followed the conclusion of an IMF mission to Accra headed by mission chief Ruben Atoyan.
During the visit, the team reviewed Ghana’s economic programme under the Extended Credit Facility and held discussions with government officials on a proposed Policy Coordination Instrument.
In a statement released on Friday, the IMF noted that Ghana’s economy has recorded significant progress in its recovery, highlighting a sharp drop in inflation, improved reserve levels, increased confidence in the cedi, and stronger-than-expected growth in 2025.
However, despite these positive developments, the Fund warned that the Bank of Ghana’s gold programme could expose the financial system to risks if it is not effectively managed.
“Maintaining a forward-looking, prudent monetary policy is instrumental to firmly anchoring inflation expectations,” the IMF said
It further stated that measures to boost confidence in monetary policy “should focus on strengthening the central bank’s balance sheet.”
The IMF went on to specifically highlight concerns about the Domestic Gold Purchase Programme. “The losses associated with the Domestic Gold Purchase Programme (DGPP) underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet,” the statement said.
The Fund cautioned that any future expenses related to the programme should be fully reflected in the national budget to strengthen accountability.
“Efforts to protect the Bank of Ghana’s balance sheet from DGPP-related quasi-fiscal risks and budget recognition of future costs would help enhance accountability and oversight,” it stressed.
Despite these concerns, the IMF also commended Ghana for achieving what it described as “substantial stabilisation gains” under the ongoing programme.
According to the Fund, Ghana’s fiscal position has improved significantly, the debt-to-GDP ratio has fallen, and investor confidence has strengthened following the successful reintroduction of domestic treasury bond auctions.
The IMF further confirmed that it has reached a staff-level agreement with Ghana on policy measures for a new 36-month non-financing programme designed to sustain reforms after the current bailout concludes.
However, the Fund cautioned that Ghana remains vulnerable to external shocks, particularly due to the conflict in the Middle East, which could drive up prices of energy, food, and fertilisers.
It also urged government to avoid “past policy slippages,” including recurring fiscal imbalances, rising debt, weak financial buffers, and reform reversals.
The IMF stated that maintaining disciplined economic policies and speeding up reforms will be essential to safeguarding the progress made under the programme.
