The Bank of Ghana (BoG) has credited strong gold-related income and improved reserve management for helping to stabilise its financial position in 2025, despite recording a significant operating loss.
The central bank posted an operating loss of GH¢15.63 billion for the year. However, gains from refined gold sales—amounting to GH¢9.57 billion—played a critical role in cushioning the outcome. Without this boost, the loss would have exceeded GH¢25 billion, underscoring the scale of underlying financial pressures.
The figures reflect the high cost of maintaining tight monetary policy aimed at stabilising the cedi and curbing inflation, including elevated interest rates and liquidity management operations.
Despite the loss, the BoG reported a marked improvement in its policy solvency position compared to 2024. This was supported by stronger income from reserve management, increased fees and commissions driven by higher transaction volumes, and earnings from gold under its diversification strategy.
According to the central bank, gold income has become a key buffer sustaining critical monetary operations, particularly liquidity absorption efforts.
In its report to the Finance Minister, the BoG’s Directors highlighted the impact of its flagship gold initiative, stating:
“The Domestic Gold Purchase Programme has contributed meaningfully to the stabilisation of Ghana’s foreign exchange market by strengthening reserve buffers and reducing structural pressures on foreign currency demand. Through the domestic acquisition of gold, the Programme has enabled the Bank to augment foreign exchange reserves without recourse to the domestic foreign exchange market, thereby easing pressure on the cedi.”
Introduced in June 2021, the Domestic Gold Purchase Programme was designed to rebuild reserves, reduce exchange rate volatility and restore investor confidence at a time of mounting economic challenges.
Under the programme, the Bank acquires gold through multiple channels, including purchases from mining firms for reserves, sourcing dore gold for refining, and working with the Ghana Gold Board to buy from small-scale miners for export and foreign exchange generation.
This multi-layered approach has enabled the BoG to grow its reserve base while maintaining flexibility in managing the foreign exchange market.
The Directors further noted:
“Furthermore, the Programme has materially advanced reserve diversification, reduced dependence on other foreign currency denominated assets, and bolstered confidence in the Bank’s external position and overall policy framework. Taken together, these outcomes have contributed to moderating exchange rate volatility and reinforcing stability in the foreign exchange market.”
Globally, central banks have increasingly turned to gold since the global financial crisis as a hedge against external shocks. For Ghana, the BoG’s gold strategy is emerging as a central pillar in efforts to stabilise the economy while navigating ongoing fiscal and monetary challenges.
