BoG Gold Sales Generated Artificial Revenue, Reduced Loss to GHS 15.6 Billion

The Bank of Ghana (BoG) sold portions of its gold reserves to generate “artificial revenue” to reduce reported losses, according to Dr. Kwasi Nyame-Baafi. He states this action impacted its 2025 financial accounts significantly. This move brought the central bank's headline losses down to GHS 15.6 billion.

Dr. Nyame-Baafi, Director of the Institute for Economic Research and Public Policy (IERPP), publicly questioned the BoG’s accounting strategy. He argued that without these gold sales, the central bank's losses would have been GHS 44 billion. The IERPP Director suggests the sales aimed to create a more favorable financial picture for the institution.

This alleged strategy deviates from a global trend where central banks accumulate gold as a hedge against economic volatility. Many central banks worldwide have been increasing their gold holdings as a safe asset. Such actions help protect against uncertainties in the global economy. Ghana’s decision to sell gold instead raises concerns about its financial stability and risk management.

Dr. Nyame-Baafi, speaking on GHOne TV, highlighted this discrepancy. “At the time the Central Bank of Ghana was offloading its gold reserves, many central banks across the globe were actually buying more gold,” he stated. He maintained that gold serves as a critical safe asset during global economic instability. The IERPP Director also noted that the stated justification of portfolio diversification did not align with subsequent events, including the BoG later buying back gold.

The implications of this alleged accounting practice are significant for Ghana's financial credibility and economic outlook. An opaque approach to reporting losses can undermine public trust in the central bank. It could also deter foreign investment seeking transparent financial environments. Analysts will scrutinize future BoG financial statements closely for clarity on accounting methodologies. Stakeholders will watch for explanations regarding gold reserve management. This situation demands greater transparency from the central bank.

Dr. Nyame-Baafi emphasized that the central bank would have been “policy insolvent” without the gains from the gold transactions. He stated this based on his interpretation of the financial accounts. He pointed out that auditors indicated the accounts used internal BoG accounting policies. International financial reporting standards were not fully applied. Transparency in explaining these methodologies to the public is crucial. Without such clarity, the credibility of the central bank may suffer.