The International Monetary Fund (IMF) has raised concerns about the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), warning that losses associated with the initiative could weaken the central bank’s balance sheet.

The concerns were outlined at the end of an IMF mission to Accra led by mission chief Ruben Atoyan. The team reviewed Ghana’s economic programme under the Extended Credit Facility and held discussions with government officials on a new Policy Coordination Instrument.

In a statement issued on Friday, the IMF said Ghana’s economic recovery programme has achieved significant gains, including declining inflation, improved foreign reserves, renewed confidence in the cedi, and stronger-than-expected economic growth in 2025.

Despite the progress, the Fund cautioned that the DGPP poses financial risks if not properly managed.

“Maintaining a forward-looking, prudent monetary policy is instrumental to firmly anchoring inflation expectations,” the IMF stated.

It added that efforts to strengthen confidence in monetary policy should focus on strengthening the Bank of Ghana’s balance sheet.

The IMF specifically pointed to the Domestic Gold Purchase Programme, stating that losses linked to the initiative highlight the need for greater transparency and limits on quasi-fiscal activities.

“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 further noted that future costs related to the programme should be fully reflected in the national budget to improve accountability and oversight.

“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 added.

The IMF also commended Ghana for achieving “substantial stabilisation gains” under the current programme, citing stronger fiscal performance, a decline in the debt ratio, and improved investor confidence following the return of domestic treasury bond issuance.

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

However, the IMF warned that Ghana remains vulnerable to external shocks, including the ongoing war in the Middle East, which could affect global energy, food, and fertiliser prices.

It also urged authorities to avoid previous policy setbacks such as fiscal imbalances, rising debt levels, weak financial buffers, and reversals in reforms.

According to the IMF, maintaining prudent policies and accelerating reforms will be important to sustaining the gains achieved under the programme.