Should BoG’s gold purchase programme be judged by profits or economic stability?

Judging the Domestic Gold Purchase Programme solely by its impact on the Bank of Ghana's profit and loss account risks overlooking its broader contribution to the economy, the more relevant question is whether the programme generated greater national value by strengthening the cedi, containing inflation, improving external resilience, protecting the sustainability of public debt, and reinforcing Ghana's macroeconomic stability.

By helping to moderate exchange rate volatility, the Domestic Gold Purchase Programme may have prevented substantial increases in the domestic cost of servicing external debt.

The International Monetary Fund's recommendation that the Bank of Ghana reassess its Domestic Gold Purchase Programme because of its impact on the central bank's balance sheet deserves careful consideration.