BoG conducts audit of Gold-for-Oil Programme as IMF cost concerns persist

The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has informed Parliament’s Public Accounts Committee (PAC) that an external audit is currently underway into the Gold-for-Oil and domestic gold purchase programmes, as part of efforts to strengthen oversight, improve efficiency, and safeguard public resources.

Appearing before the Committee on Monday, Dr. Asiama explained that while the programme has delivered measurable gains—particularly in boosting reserves and supporting macroeconomic stability—certain aspects have required reform.

“We have had to tweak some elements of the programme, and an audit is currently ongoing,” he told the Committee. “This is not an internal exercise. We have engaged one of the Big Four external audit firms to independently review the operations. Our appeal is that we allow this process to be completed, review the findings, and allow the audit report to guide the next steps.”

According to the Governor, the review will help determine how best to address the operational costs associated with the programme and clarify who should ultimately bear those costs.

“As a central bank, based on what we observed last year—particularly the contribution of the programme to reserve accumulation and the general stabilisation of the economy—we believe the most optimal path forward is to properly assess the cost structure and agree on an equitable way to share those costs,” he said.

IMF Position: Costs, Not the Programme, Are the Issue

Dr. Asiama also addressed concerns about the International Monetary Fund’s (IMF) position on the central bank’s involvement in domestic gold purchases, clarifying that the IMF has not objected to the existence of the programme itself.

He stressed that the IMF’s concern centres on fiscal responsibility rather than policy direction.

“The IMF’s position is clear. It is not opposed to the programme,” he noted. “Its concern is that the inherent costs cannot continue to be borne by the central bank alone.”

To address this, the BoG is engaging government stakeholders to explore cost-sharing arrangements across relevant state institutions, while also seeking parliamentary backing to formalise such mechanisms.

Programme Rooted in Legal Mandate

The Governor reminded the Committee that the domestic gold purchase programme was approved by the Bank of Ghana’s Board in 2021 and operates fully within the Bank’s legal mandate. Since its inception, the programme has undergone reforms aimed at improving transparency, efficiency, and sustainability, in line with Ghana’s IMF commitments.

“This programme has been in place since 2021. We have reformed it, we continue to refine it, and we are committed to aligning it with best practices and international expectations,” Dr. Asiama said.

He appealed for public and parliamentary support as the reforms continue, linking recent macroeconomic improvements to the programme’s broader impact.

“We are seeing real results—price pressures are easing, and the economy is stabilising. When Ghanaians point out that some prices, including cement, are coming down, that is not anecdotal; it reflects underlying progress. What we ask is that we work together to reform and sustain these gains for the long term.”

PAC Calls for Further Policy Easing

Meanwhile, the Chairperson of the Public Accounts Committee, Abena Osei Asare, urged the central bank to consider further easing its policy stance to support businesses, households, and the private sector.

Her call follows the release of inflation data showing that Ghana’s annual inflation rate declined to 5.4 per cent in December 2025, down from 6.3 per cent in November. This marks the 12th consecutive month of disinflation and the lowest inflation level since July 2022, driven largely by a strengthening cedi.

With inflation now below the Bank of Ghana’s medium-term target band of 8.2 per cent ±2, the Chairperson argued that there is room for the central bank to further relax monetary conditions to stimulate economic activity and ease the cost of doing business.