The Bank of Ghana (BoG) has revealed that it lost a total of GH¢2.14 billion from the now-ended Gold for Oil (G4O) Programme, which was implemented by the erstwhile government.

This was revealed in a response from the central bank following a formal request made by Kwadwo Poku, a member of the New Patriotic Party (NPP) and an energy analyst. He requested it while invoking the country’s Right to Information laws.

In the bank’s official reply (dated July 2025), they explained that the losses happened over two years, i.e., spanning between the 2023-2024 fiscal year. In 2023, the country lost GH¢320 million, and a further GH¢1.82 billion was lost in 2024, totalling GH¢2.14 billion.

The Bank of Ghana officially announced the cancellation of the programme on March 13, 2025, citing severe financial losses totalling over GH¢2 billion since its launch. Before that, there were hints of a gradual wind-down as early as November 28, 2023, when former Bank of Ghana Governor Ernest Addison described it as a crisis-era intervention that had served its purpose.

The Bank of Ghana attributed the losses to two major components: gold transactions and petroleum trading. On gold transactions, the report says that the Bank of Ghana’s unrealistic exchange rate caused the losses. It said that it lost about GH¢1.80 billion, mainly because the exchange rate used by the bank was different from the rate on the gold market.

Also, on the losses recorded from petrol trading, from which they lost GH¢340 million, the report mentioned that under the G4O, BoG purchased large volumes of fuel just before global oil prices fell. When the prices dropped, the fuel they had stocked up became less valuable.

Despite the losses, the report acknowledged the G4O initiative. According to BoG, the programme was not a total failure but made some returns before it dwindled in the later years, citing its positive impact during the first year of implementation in 2023. It noted that the programme helped reduce demand for US dollars from Bulk Oil Distributors (BDCs), alleviating pressure on the interbank foreign exchange market.

G40 saved the country by preventing an estimated $1.66 billion in additional FX demand, which would have been required to deliver 56 cargoes totalling over 1.84 million metric tonnes of petroleum products by December 2024. Also, the initiative spurred competition in the fuel supply market. Prior to G4O, petroleum premiums ranged between $150 and $170 per metric tonne. These figures dropped to between $50 and $80 due to the programme, resulting in lower ex-pump fuel prices.

The central bank also highlighted that the removal of forward exchange rate pricing under the G4O programme helped stabilise domestic fuel prices. Aside from the losses the programme made, which was cited as part of the reasons for its discontinuation, the Bank of Ghana also explained that the G4O programme was financially unsustainable and did not align with the International Monetary Fund’s (IMF) fiscal recommendations.

Going forward, according to the central bank, it will refocus on its core mandate, with renewed emphasis on the Domestic Gold Purchase Programme to build foreign reserves organically.

The Domestic Gold Purchase Programme (DGPP) is a strategic initiative launched by the Bank of Ghana on June 17, 2021, aimed at strengthening the country’s foreign exchange reserves and stabilising the local currency.

Additionally, the central bank confirmed that a new operational framework will be introduced to shorten the cash cycle and transfer the trading and financing of fuel to the Bulk Oil Storage and Transportation Company (BOST) and its financial partners.

With G4O being a temporary solution to cushion Ghana's foreign exchange reserve, the government launched a permanent authority, GoldBod, officially on April 2, 2025, following the passage of the Ghana Gold Board Act (Act 1140). The Act makes GoldBod the sole authority empowered and mandated to purchase, sell, assay, grade, weigh, and export gold from artisanal and small-scale miners.

It replaces the Precious Minerals Marketing Company (PMMC) and assumes its assets, liabilities, and workforce. During the 2025 Mid-Year Budget Review presented on July 24, the Finance Minister, Dr. Cassiel Ato Forson, made several key statements about GoldBod and the results it has been producing since it came into effect.

He announced that GoldBod had already recorded a 51.5-tonne surge in small-scale gold exports valued at US$5 billion, which marked a 100% increase in volume and a 180% increase in value compared to the same period in 2024. “Mr. Speaker, we have established the Ghana Gold Board, through Act 1140, to accumulate foreign exchange to support the stability of the Ghana cedi,” the sector minister said.

He continued that the recent appreciation of the cedi also has the GoldBod initiative to thank. “GoldBod’s reforms have contributed to the cedi’s 16.7% appreciation against the US dollar as of May 13, 2025,” Dr Cassiel Ato Forson said.

Dr. Forson attributed this growth to GoldBod’s reforms, including a revamped licensing regime and new aggregation systems that improved gold collection from artisanal and small-scale miners. He emphasised that GoldBod is a strategic vehicle for currency stability, noting that its operations contributed.

GoldBod is now the sole buyer and assayer of gold in Ghana. It has exclusive rights to license and regulate gold trade, replacing the fragmented system previously involving PMMC, Bank of Ghana, MIIF, and private aggregators.

The government on July 8 launched a new task force to clamp down on illicit gold-smuggling activities in the country. The task force, according to the Chief Executive Officer (CEO) of the Ghana Gold Board (GoldBod), Sammy Gyamfi, forms part of broader measures to combat smuggling and illegal trading of gold in the country.

His Excellency President John Dramani Mahama cautioned the Ghana Gold Board task force against abusing their office to undertake unlawful activities. "To the task force, let me be clear. Abuse of your authority will not be tolerated. If any of you is found engaging in misconduct, you will face immediate sanctions, and this could include dismissal, prosecution, and forfeiture of your entitlement," he said.

The president also announced the government's decision to provide an incentive to members of the general public who serve as whistleblowers to aid in clamping down on illicit gold-smuggling activities in the country. At the launch, the president noted that informants are eligible to receive 10 percent of the seized gold in cash value.

"So whistleblowers, get ready. If you blow the whistle on anybody and gold is retrieved or cash is received, you’d get 10 percent of the value of both," he said. The task force will be given a special mandate with specific powers as police officers to wage war against smuggling and all forms of illegal gold trading activities in the country.

According to Finance Minister Dr Cassiel Ato Forson, "at the peak of our economic crisis in 2022, 60 tonnes of gold worth an estimated $1.2 billion at the time, left Ghana through illegal channels." It is estimated that about 600 tonnes of gold have been smuggled out of the country in the last ten years, valued at over $12 billion.

According to the Acting Chief Executive Officer of the Goldbod, Sammy Gyamfi, this will save the government from any leakages in revenue mobilisation in the sector, helping to generate and invest revenue for economic development.

“(This will) help the state combat and defeat the phenomenon of gold smuggling, the canker of illegal gold trading, and price disruptions that deprive the state of the needed revenue, profit, and the needed forex for our economy and the development of our country,” he announced.

He thus cautioned traders to secure the appropriate licence to engage in any form of gold trading in the country, saying, “But for those who are hell-bent on trading illegally without the licenses, we are serving notice that we are coming after you”.

Earlier, the GoldBod CEO on June 5 warned that persons who trade without licenses would be prosecuted, adding that his outfit takes no bribes before the said licenses are issued.

Lauding his outfit’s results-oriented reforms and initiatives since his takeover as CEO, Sammy Gyamfi, during a media engagement, revealed that GoldBod has exceeded the $5 billion mark in gold export value for the first half of 2025, surpassing the $4.6 billion recorded for the entire year of 2024.

He expressed optimism that GoldBod would hit the 60-tonne export mark by the end of July 2025, driven by stronger compliance, improved oversight, and the streamlined licensing regime under the Ghana Gold Board Act, 2025 (Act 1140).

“In the whole of 2024, gold exports stood at 66 tons with an export value of $4.6 billion. We have done only six months, and yet we have crossed the $4.6 billion. We have gone beyond $5 billion, and in terms of volumes, we have done 50 tons and over, and we are optimistic that by the end of next month, we will have hit 60 tons,” he said.