Entrepreneur and economic policy analyst, Senyo K. Hosi, has argued that the reported US$214 million trading loss associated with Ghana’s Domestic Gold Purchase Programme (DGPP) should be viewed as a deliberate policy cost rather than an economic failure.
In an opinion piece published on December 31, 2025, Hosi maintained that “an accounting loss or financial loss is not an economic loss,” insisting that the assessment of the Gold Board (GOLDBOD) must be anchored on policy outcomes rather than conventional profit-and-loss metrics.
Hosi explained that while the International Monetary Fund (IMF) reported that the Bank of Ghana (BoG) recognised a US$214 million loss under the DGPP, this reflected an accounting outcome arising from the programme’s design.
According to him, GOLDBOD was mandated to buy gold at or near world market prices to disincentivise smuggling and break the dominance of foreign gold buyers. “From a policy perspective, the US$214mn trading loss must be viewed differently, not through a financial or accounting lens,” he wrote, describing the cost as necessary to achieve broader economic objectives.
READ: GOLDBOD: LOSS OR NO LOSS? The Price of Everything and The Value of Nothing
He attributed the reported losses largely to pricing adjustments made to compete with smugglers, including bonuses paid to miners to bridge the gap between Bank of Ghana interbank exchange rates and open market rates. Hosi noted that these measures helped reduce gold smuggling and optimise official gold exports, with artisanal and small-scale mining gold exports rising from 63.6 metric tonnes in 2024 to 101 metric tonnes by December 23, 2025. He stressed that this increase reflected improved accounting and reduced smuggling rather than a surge in production.
Hosi further linked the DGPP to significant macroeconomic gains, citing IMF data showing that the programme enabled Ghana to meet its 2028 reserve accumulation target in 2025. He noted that gross international reserves rose from US$8.98 billion in 2024 to US$11.12 billion by October 2025, contributing to currency stability.
“The US$214mn is a policy cost and not a loss, as its economic policy outcomes outweigh its financial cost,” he concluded, adding that while the cost was justified, future reforms should aim to reduce or eliminate it to maximise long-term economic benefits.
Source: Starrfm.com.gh
