An economist, Senyo K. Hosi has defended the Bank of Ghana’s (BoG) Gold Programme “Loss” report.
In a detailed analysis, he argued that the BoG’s report which indicated that it made $214 million loss from its Domestic Gold Purchase Programme (DGPP) is not a true economic loss but a necessary policy cost that has yielded massive benefits for the Ghanaian economy.
Mr Hosi, who is also an entrepreneur and policy analyst, frames the debate by distinguishing between accounting losses and economic policy outcomes.
He asserted that while the DGPP, operated by GOLDBOD, incurred a financial loss, its strategic aim was to achieve broader monetary and economic objectives.
His key arguments in defence of the DGPP includes curbing Smuggling & Boosting Reserves: Before GOLDBOD, about one-third of Ghana’s artisanal gold was smuggled out.
The programme successfully incentivised miners to sell officially by offering competitive prices, dramatically reducing smuggling.
Official gold exports surged from 63.6 metric tons in 2024 to 101 metric tons in 2025.
This significantly increased foreign exchange inflows, allowing the BoG to exceed its 2028 reserve target by 2025, with gross reserves jumping from $8.98bn to an estimated $13bn.
Explaining the “Loss”, Mr Hosi said the financial loss stems from two main factors: operational costs and a deliberate pricing strategy to outcompete smugglers.
A major component is a “bonus” paid to miners to bridge the gap between the BoG’s official exchange rate and the higher open-market rate, ensuring they aren’t disadvantaged for selling legally.
This is framed as a foreign exchange cost, not a trading loss.
He further noted that substantial economic benefits outweigh the cost, thus, the analysis quantifies the programme’s positive impact, attributing a significant currency appreciation (13% on average, 32.47% year-on-year) directly to the DGPP-driven forex inflows. This appreciation generated:
Also, there was fiscal savings as over GHS 12.6 billion (USD ~1.14 billion) was saved on external debt and Independent Power Producer (IPP) payments alone, more than five times the DGPP’s $214 million cost.
Again, Mr Hosi noted an estimated GHS 60 billion was saved on the national import bill, boosting consumer spending power.
Touching on inflation control, the economist, pointed that the stronger cedi is cited as a key driver in reducing inflation from 24% in 2024 to 6.3% in late 2025, achieving the BoG’s primary mandate.
He, therefore, concluded that the $214 million is a strategic “policy cost,” not a loss, given the overwhelming economic returns.
He acknowledges the IMF’s role in highlighting the cost but suggests Ghana’s success, an unexpected currency appreciation during an IMF program, is a positive “outlier” driven by effective homegrown policy.
Providing some recommendations, Mr Hosi said the BoG must work to eliminate the exchange rate disparity that causes the forex losses, and Ghana must accelerate structural economic transformation to move beyond commodity dependence and sustain these gains.
The analysis advocates for evaluating economic policy through the lens of broad outcomes, stability, growth, and savings, rather than a narrow accounting definition of profit and loss.
Full report below…
