US$214m gold loss: Gold buyers push back on IMF claims, say G4R losses misunderstood

The Chamber of Licensed Gold Buyers has rejected suggestions that losses reported under the Bank of Ghana’s Gold for Reserves programme point to failures by GoldBod or licensed gold buyers, insisting the figures must be properly understood within their accounting and operational context.

In its Fifth Review of Ghana’s IMF programme, the International Monetary Fund reported that the Bank of Ghana had recorded provisional losses of about US$214 million on the Gold for Reserves initiative as of September 2025. The Fund attributed the losses mainly to trading shortfalls involving artisanal and small scale mining gold and fees linked to GoldBod operations, warning that the rapid expansion of the programme could expose the central bank to balance sheet risks if pricing gaps and operational costs are not carefully managed.

Responding to the concerns, the Chamber clarified that the reported losses sit on the books of the Bank of Ghana and should not be interpreted as losses incurred by GoldBod or licensed gold buyers.

“The US$214 million relates to the overall position recorded by the Bank of Ghana under the Gold for Reserves programme. GoldBod itself was not identified as an entity making the loss,” the Chamber said, stressing that licensed buyers operate within regulated margins and do not carry the balance sheet risk of the central bank.

According to the Chamber, licensed gold buyers function as intermediaries within the aggregation framework and neither profit from nor absorb losses arising from movements in international gold prices. It added that the IMF’s assessment reflects a broader macroeconomic concern rather than a direct criticism of the programme’s operational legitimacy.

“The IMF’s focus goes beyond profit and loss. It is concerned with how large commodity backed programmes may affect the central bank’s balance sheet and fiscal stability,” the statement explained.

Chief Executive Officer of the Chamber, Kwaku Amoah, said the IMF’s caution should be seen as a call to strengthen the commercial structure and financial reporting surrounding Ghana’s gold aggregation efforts.

“Reforms in the gold sector must be grounded in national interest, but also supported by sound commercial design and effective risk management,” he said, adding that improvements in pricing transparency, settlement efficiency and private sector participation would be essential to reducing future balance sheet pressures.

The Chamber also pointed to operational challenges confronting industry players, including inconsistent quality of artisanal gold affecting valuation, high logistics and compliance costs, and volatility in global gold prices that complicate sales timing under the policy. These challenges, it said, highlight the need for a more predictable pricing framework and clearer risk sharing arrangements across the value chain.

To strengthen the integrity of the programme, the Chamber called for closer reconciliation between the Bank of Ghana, GoldBod and licensed buyers, clearer pricing benchmarks aligned with international standards, explicit definition of where market risk lies at each stage, and safeguards to shield the central bank from commercial exposure. It also urged consideration of hedging and forward sale mechanisms to reduce vulnerability to future price swings.

While reaffirming its support for efforts to retain more value from Ghana’s gold resources and strengthen foreign exchange reserves, the Chamber stressed that transparency must remain central to implementation.

“With clear reporting, defined risk allocation and effective pricing systems, the gold sector can support sustainable reserve accumulation, formal sector growth and lasting economic gains for Ghana,” it said.