However, the IMF warned, "this activity had quasi-fiscal characteristics and could compromise the central bank's autonomy," prompting it to push for termination of the arrangement.
What Changed and Why
Authorities have set aside 5 billion cedis for the Ghana Gold Board, known as Goldbod, to assume the role of buying gold from artisanal miners. Those funds are included in an amended 2026 budget that forecasts a wider shortfall of 2.2% of GDP this year, compared with 1% in 2025. The change was prompted by concerns from the International Monetary Fund.
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The Numbers Behind the Move
Last year, the cedi appreciated 41% versus the greenback, ranking among the top-performing currencies worldwide as measured by Bloomberg.
Since then, it has surrendered part of that advance. The inflation rate fell to 5.3% in June, down from 23.8% in December 2024, which gave the central bank room to reduce its benchmark interest rate from 29% to 14% over the same year.
These developments highlight the broader economic transformation underway. Ghana's emergence from a debt crisis has been bolstered by soaring gold output and official sales, with the new Goldbod structure intended to ensure that more revenue stays within formal channels. The shift also reflects the IMF's insistence that fiscal and monetary functions remain clearly separated, especially as the country continues to rebuild investor confidence after its default.
Ghana's recovery from a sovereign default has relied heavily on record gold production to rebuild foreign reserves and stabilize the currency. The central bank's earlier gold-purchase program initially aimed to support the cedi, but mounting losses and quasi-fiscal risks drew IMF scrutiny. By transferring the buying role to Goldbod, authorities seek to keep monetary policy independent while directly channeling gold revenue into fiscal accounts. The budget adjustment includes a reduction in capital spending from 57.5 billion cedis initially slated to 52.5 billion cedis, and operating expenses for the gold program have been lowered to 5% of the value of gold bought, compared with the earlier 14.5%.
This worsening has sparked fears that the buying initiative might undercut the fiscal progress Ghana has made while emerging from a debt crisis. To protect its deficit goal from the Goldbod outlay, the government plans to reduce capital spending from 57.5 billion cedis initially slated to 52.5 billion cedis. Additionally, authorities have moved to lower the program's operating expenses to 5% of the value of gold bought, compared with the earlier 14.5%.
With the shift in program management, Goldbod will now conduct periodic dollar auctions to the foreign-exchange market. The Bank of Ghana will intervene solely when it decides to influence currency markets.
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