IMF warns BoG Gold Scheme could Weaken Central Bank Balance Sheet

It added that efforts to strengthen confidence in monetary policy “should focus on strengthening the central bank’s balance sheet.”

The IMF then directly flagged 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 warned that future costs linked to the programme must be properly captured in the national budget to improve 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.

The IMF’s concerns come even as it praised Ghana for making “substantial stabilisation gains” under the current programme.

According to the Fund, fiscal performance has strengthened sharply, the debt ratio has declined, and investor confidence has improved following the successful return of domestic treasury bond issuance.

The IMF also confirmed that Ghana and the Fund have reached a staff-level agreement on policies to support a new non-financing 36-month programme aimed at sustaining reforms after the current bailout ends.

Still, the Fund warned that Ghana remains exposed to global shocks, especially from the war in the Middle East, which could push up energy, food, and fertiliser prices.

It also urged government to avoid “past policy slippages,” including recurring fiscal imbalances, rising debt, weak financial buffers, and reform reversals.The IMF said sustaining prudent policies and accelerating reforms would be critical to preserving the gains achieved under the programme.