The Chamber of Licensed Gold Buyers (CLGB) has responded to concerns raised by the International Monetary Fund (IMF) over provisional losses recorded under the Bank of Ghana’s Gold-for-Reserves (G4R) programme, insisting the issue must be viewed within its proper operational and accounting context.
In its Fifth Review of Ghana’s current IMF programme, the Fund disclosed that the Bank of Ghana had posted losses of about US$214 million on the G4R initiative as of September 2025, primarily due to trading shortfalls in artisanal and small-scale mining (ASM) gold transactions and fees associated with the Ghana Gold Board (GoldBod) operations.
The IMF warned that the scale and pace of the programme’s expansion could pose balance sheet risks for the central bank if pricing gaps, off-taker discounts and operational costs are not managed effectively.
However, the Chamber clarified that the reported loss figure is attributed to the Bank of Ghana’s books, not GoldBod or licensed gold buyers directly.
“The US$214 million figure relates to the overall loss recorded by the BoG under Gold-for-Reserves. GoldBod itself was not named as an entity making the loss,” the statement stressed, explaining that licensed buyers operate within regulated margins and do not assume the central bank’s balance sheet risk.
CLGB maintained that licensed gold buyers act as intermediaries within the aggregation model and do not benefit from or bear losses tied to price fluctuations in global gold markets.
According to the Chamber, the IMF’s position reflects a broader macroeconomic lens rather than an indictment of the operational legitimacy of the programme.
“The IMF is not solely focused on whether a public entity posted a profit or loss, but on the potential risk large commodity-backed programs pose to the central bank’s balance sheet and fiscal position,” the Chamber noted.
CLGB’s Chief Executive Officer, Kwaku Amoah, said the Fund’s caution reinforces the need to strengthen commercial design and financial reporting around Ghana’s gold aggregation strategy.
“Gold sector reforms must be anchored not only in national interest, but also in sound commercial design and risk management,” he said.
“Strengthening GoldBod’s operational architecture—particularly pricing transparency, settlement efficiency, and private sector participation—will be critical to preventing future balance sheet pressures.”
The Chamber highlighted operational difficulties faced by players in the sector, including:
- inconsistent ASM gold quality that affects valuation;
- high logistics and compliance costs; and
- volatility in international gold prices that can complicate sales timing under the G4R policy.
CLGB said these factors reinforce the need for a more predictable pricing structure and risk-sharing model across the value chain.
To protect the programme’s integrity, CLGB proposed a series of reforms including:
- quarterly reconciliations between BoG, GoldBod and gold buyers;
- pricing formulas tied to LBMA benchmarks to prevent arbitrary pricing;
- clarity on which institution bears market risk at every stage; and
- insulating the central bank’s balance sheet from commercial operations.
The Chamber also proposed exploring hedging and forward-sale arrangements to reduce exposure to future price volatility.
CLGB reaffirmed its commitment to supporting the government’s drive to retain more gold value domestically while boosting Ghana’s foreign exchange buffers but said transparency must guide implementation.
“With transparent reporting, risk clarity, and effective pricing mechanisms, the sector can deliver sustainable reserve accumulation, formal sector growth, and economic benefits for Ghana,” it noted.
