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The Bank of Ghana (BoG) has shed further light on the cost structure of its Domestic Gold Purchase Programme (DGPP), attributing the bulk of recorded expenses to exchange rate differentials rather than operational inefficiencies or trading losses.
According to details presented by the Bank’s Financial Markets Department, approximately 83% of the programme’s reported costs stem from the gap between forex bureau rates and the official exchange rate used for accounting purposes.
Explaining the mechanism, officials noted that gold sourced from small-scale miners is purchased in cedis using prevailing forex bureau rates, which are typically higher than the BoG’s official rate. However, for reporting and accounting, transactions are recorded at the official rate—creating a valuation difference that is reflected as a cost.
The impact of this gap was amplified in 2025, as the appreciation of the cedi widened the spread between both rates, leading to higher reported programme costs.
The BoG emphasised that this pricing approach is a deliberate policy measure aimed at incentivising small-scale miners to transact within formal channels, reducing reliance on informal or unregulated buyers.
While the exchange rate differential introduces accounting pressures, the central bank maintains that the strategy supports broader objectives, including strengthening the formal gold market, improving transparency, and enhancing foreign exchange retention.
Ultimately, the Bank reiterated that the DGPP’s cost profile should be viewed within the context of policy design—balancing market development goals with short-term accounting impacts.
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