Accra: The government has allocated GHS5 billion (approximately $429 million) in the revised 2026 Budget to the Ghana Gold Board (GoldBod) for purchasing gold from small-scale and artisanal miners. This allocation marks a significant restructuring of Ghana's gold-buying programme, with GoldBod assuming the role previously held by the Bank of Ghana (BoG).
According to Ghana Web, the change was prompted by concerns from the International Monetary Fund (IMF) regarding the central bank's involvement in gold purchases. The IMF highlighted that the activity had 'quasi-fiscal characteristics' that could compromise the central bank's autonomy. Consequently, the IMF advocated for the termination of the arrangement and the subsequent transfer of the gold-buying function to GoldBod.
Under the new arrangement, GoldBod will utilize the GHS5 billion allocation to purchase gold from artisanal and small-scale miners. This aims to retain more gold revenue within formal channels and create a direct link between the proceeds and fiscal operations. The restructuring comes in the wake of substantial losses under the BoG's gold-buying programme, which recorded a loss of about GHS9 billion in the most recent year, up from GHS5.7 billion the previous year.
The significant losses, alongside concerns over the quasi-fiscal nature of the programme, increased pressure to separate the BoG's core monetary policy functions from activities deemed fiscal in nature. To shield the government's fiscal targets from the costs associated with the new arrangement, capital expenditure in the revised budget has been reduced from GHS57.5 billion to GHS52.5 billion.
Additionally, the government has cut the operating expenses of the gold-buying programme to 5% of the value of gold purchased, down from 14.5% previously. The revised 2026 Budget anticipates a fiscal deficit of 2.2% of Gross Domestic Product (GDP), compared to 1% in 2025.
Gold has played an increasingly critical role in Ghana's economic recovery following the country's debt crisis and sovereign default. Record gold production and official gold sales have contributed to rebuilding foreign exchange reserves and stabilizing the cedi.
In recent developments, the cedi appreciated by 41% against the US dollar in 2025, ranking among the world's top-performing currencies, although it has since lost some of those gains. Inflation has also sharply declined, falling to 5.3% in June 2026, from 23.8% in December 2024. This decline has allowed the BoG to reduce its benchmark policy rate from 29% to 14%.
Under the newly structured programme, GoldBod will conduct periodic dollar auctions in the foreign exchange market, with the BoG intervening only when necessary to influence currency market conditions. The restructuring is intended to establish a clearer separation between fiscal and monetary responsibilities as Ghana continues efforts to rebuild investor confidence and strengthen its economic recovery.