The Bank of Ghana’s Domestic Gold Purchase Programme (DGPP) has faced criticism after reports suggested it recorded a US$214 million loss, but economic analysts say the figure reflects a calculated policy cost rather than a failure.
Launched in 2025 through GoldBod, the programme was created to centralise Ghana’s gold trade, curb widespread smuggling and channel more gold sales through official systems. By doing so, it aimed to boost foreign exchange inflows and strengthen the country’s gold and currency reserves.
In its first year, the DGPP significantly reduced gold smuggling and transformed the artisanal and small-scale mining (ASM) sector. Official ASM gold exports increased from 63.6 metric tonnes in 2024 to 101 metric tonnes in 2025, reflecting higher compliance and improved monitoring.
Entrepreneur and economic policy analyst Senyo K. Hosi explained that the reported US$214 million “loss” is largely an accounting outcome arising from deliberate policy choices. According to him, GoldBod paid miners world market prices and offered incentive bonuses to discourage illegal exports, ensuring that gold previously lost to smuggling entered official channels.
These measures, he noted, directly strengthened Ghana’s external position. As a result, the country’s foreign reserves rose from US$8.98 billion in 2024 to US$11.12 billion by October 2025, with projections pointing to US$13 billion by year-end.
The strengthened reserves helped stabilise the cedi, which appreciated from an average of GH¢14.2 per US dollar in 2024 to GH¢12.53 per dollar in 2025. This currency appreciation translated into substantial fiscal savings for the government and lower import costs for businesses and households.
According to available estimates, external debt service payments fell by more than GH¢6.2 billion (US$560 million), while payments to independent power producers declined by GH¢6.45 billion (US$582 million). In addition, projected savings on imports are expected to exceed GH¢60 billion, effectively boosting real purchasing power across the economy.
The programme’s impact has also been acknowledged by the International Monetary Fund (IMF), which noted that Ghana achieved its 2028 reserve coverage target as early as 2025, several years ahead of schedule.
Beyond reserves and currency stability, the DGPP has contributed to improved price stability. Ghana’s inflation rate declined sharply from 24 per cent in 2024 to 6.3 per cent by November 2025, a development analysts partly attribute to stronger reserves and reduced exchange-rate volatility.
Mr Hosi stressed that economic policies should be assessed by their broader outcomes rather than headline accounting figures.
“The DGPP has delivered stability, fiscal savings and inflation reduction,” he said. “The US$214 million should be seen not as a loss, but as a policy cost whose benefits far outweigh its financial impact.”
