Falling Reserves Force Ghana to Rework Gold and Forex Arrangements, IMF Discloses

Ghana has been forced to overhaul its foreign exchange and gold purchase arrangements after a recent decline in foreign reserves, the International Monetary Fund has disclosed, with the Bank of Ghana ceding its intermediation role to the Ghana Gold Board (GoldBod) and large-scale miners now required to sell a higher proportion of their gold to the state.

The corrective measures, revealed in the IMF’s statement issued on Thursday, November 5, following the first review of Ghana’s Policy Coordination Instrument, underscore the lingering external vulnerabilities confronting an economy that has otherwise posted strong growth and single-digit inflation.

A Strategic Shift in Gold and Forex Management

Under the changes, foreign exchange intermediation—previously handled by the Bank of Ghana—has been transferred to GoldBod, the state agency established in April 2025 under the Ghana Gold Board Act, 2025 (Act 1140). Concurrently, large-scale gold miners are now subject to a higher gold sale requirement, compelling them to channel more of their output through official channels.

The IMF did not disclose the magnitude of the reserve decline nor the specific percentage increase in the gold sale requirement. But the Fund was explicit that sustained implementation of both measures, alongside greater exchange rate flexibility, would be essential to rebuild reserves in line with programme objectives.

The shift represents a significant evolution in Ghana’s gold sector architecture. GoldBod, which inherited the buying-agent role previously performed by the Precious Minerals Marketing Company for the Bank of Ghana under the Domestic Gold Purchase Programme, had already begun transitioning away from central bank funding. Since March 2026, GoldBod has raised its own financing from commercial banks and offtakers to fund gold purchases, rather than relying on the Bank of Ghana .

GoldBod Chief Executive Sammy Gyamfi explained in August that the institution had requested the Bank of Ghana discontinue its intermediary role in facilitating foreign exchange because of recurring costs. Going forward, GoldBod engages commercial banks directly to mobilise foreign exchange generated from its gold operations .

A Programme Without Money, but With Conditions

The changes come four months after Ghana completed its US371 million . The ECF programme, initiated in May 2023 amid a severe economic crisis, delivered substantial stabilisation gains: inflation fell from over 50 per cent to single digits, gross international reserves nearly doubled to US$11.9 billion by end-2025, and the primary fiscal balance swung to a surplus of 2.1 per cent of GDP .

The successor Policy Coordination Instrument, a 36-month non-financing arrangement, provides no new money but anchors continued reforms. The first review, conducted by an IMF team led by Ruben Atoyan from October 22 to November 4, concluded with a staff-level agreement that still requires approval from IMF Management and the Executive Board. The review is expected to go before the Board in January 2027.

Strong Headlines, Persistent Undercurrents

The IMF described programme performance as broadly satisfactory, with most quantitative targets met. Real GDP grew by 6.2 per cent year-on-year in the first half of 2026, driven by investment, and is projected at 5.7 per cent for the year. Inflation stood at 5.5 per cent in October, comfortably below the Bank of Ghana’s 8±2 per cent target band. The primary surplus remains on track to meet the end-year target.

Yet the reserve decline tells a more complicated story. Despite the headline strength, Ghana remains exposed to swings in gold, cocoa, and oil prices, as well as geopolitical tensions and tighter global financial conditions. Domestically, the IMF flagged substantial refinancing needs for domestic debt, fiscal pressures emanating from the energy, cocoa, and gold sectors, and remaining weaknesses in the financial sector.

The Fund called for prudent monetary policy, greater exchange rate flexibility, stronger reserve buffers, and the buildup of a sinking fund to help repay maturing debt.

Background: The Gold Factor

Gold has been the central pillar of Ghana’s reserve recovery. The Bank of Ghana’s Domestic Gold Purchase Programme, launched in 2021 during the debt crisis, rapidly scaled up to become the predominant driver of foreign exchange inflows. Gold-related inflows rose from approximately US12.7 billion in 2025, with the central bank purchasing and exporting around 104 tons of artisanal gold for US$10.9 billion in 2025 alone .

That programme, however, was not without costs. An IMF Selected Issues Paper noted that the rapid expansion of the DGPP coincided with large losses—US$1.7 billion, or 1.5 per cent of GDP in 2025—on the Bank of Ghana’s balance sheet . GoldBod fully took over operations and costs of the DGPP from July 2026 .

The transition to GoldBod as the primary forex intermediary is therefore both a corrective measure prompted by reserve pressures and a structural maturation of Ghana’s gold sector governance. Whether it succeeds in rebuilding buffers without the central bank’s balance sheet bearing the burden will be a key test of the PCI’s first year.