The International Monetary Fund (IMF) has urged Ghana’s authorities to avoid retaining the losses incurred under the Domestic Gold Purchase Programme on the Bank of Ghana’s (BoG) balance sheet, citing potential risks to financial stability and transparency.
The IMF’s recommendation comes as part of its latest assessment of Ghana’s economic policies and fiscal health. According to the Fund, carrying these losses on the central bank’s accounts could complicate efforts to maintain macroeconomic stability and undermine investor confidence.
The Domestic Gold Purchase Programme allows the Bank of Ghana to buy gold from local miners to support domestic markets and boost reserves. However, fluctuations in global gold prices have led to significant valuation losses, which, if left on the BoG’s balance sheet, could distort the true state of the country’s finances.
The Fund advises Ghanaian authorities to consider accounting adjustments in line with international standards, rather than absorbing the losses directly into the central bank’s books. Such measures would help ensure transparency, strengthen fiscal governance, and maintain credibility with both domestic and international investors.
Ghana’s economy has faced multiple challenges in recent years, including rising public debt, inflationary pressures, and the need for sustainable fiscal management. The IMF has been closely involved with Ghana through technical advice and financial programmes aimed at stabilising the economy and promoting growth.
Officials from the Ministry of Finance and the Bank of Ghana are expected to engage with the IMF’s guidance in ongoing discussions with international partners. Economists note that how these losses are addressed could have implications for Ghana’s credit ratings, foreign investment inflows, and future IMF programme reviews.
The IMF’s warning highlights the importance of transparent reporting and adherence to international accounting standards in managing central bank operations and government-backed financial programmes. Observers say that proactive steps by Ghana’s policymakers could reinforce confidence in the economy and ensure long-term financial stability.
As Ghana considers the IMF’s recommendations, both investors and the public are keenly watching how the government and the Bank of Ghana will respond, particularly in terms of policy adjustments and reporting practices.
Source: Thepressradio.com
