In a major shift of the nation’s financial strategy, the Government of Ghana has stepped in with a massive GH¢5.0 billion allocation to fund the operations of the Ghana Gold Board (GoldBod).
This decisive move, announced in the 2026 Mid-Year Fiscal Policy Review, marks a transition in how the country’s “economic war-chest” is built after the Bank of Ghana (BoG) ended its previous financing role.
The BoG Exit
The new financing arrangement comes as a direct response to a changing of the guard. Previously, gold reserve accumulation was often supported by the central bank.
However, following staggering losses on the BoG’s balance sheet and stern warnings from the International Monetary Fund (IMF) regarding the quasi-fiscal nature of such activities, the BoG has retreated to its core mandate of price stability.
The IMF’s Policy Coordination Instrument (PCI) specifically targets the elimination of these quasi-fiscal operations to prevent central bank overextension. Consequently, the Ministry of Finance has now assumed the primary responsibility for funding GoldBod’s operations through a formal Memorandum of Understanding (MoU).
The New Funding
To find the GH¢5.0 billion required for 2026, the government chose to tighten the belt elsewhere. The funds were secured through a strategic reprioritisation that included a GH¢5.0 billion reduction in planned Capital Expenditure (CAPEX).
This means the government is prioritizing the accumulation of gold reserves over some physical infrastructure projects, betting that a stronger currency and higher reserves will provide a more stable foundation for the entire economy.
The Goal: 15 Months of Import Cover
The GH¢5 billion is the fuel for the Ghana Accelerated National Reserve Accumulation Policy (GANRAP). Among a number of objectives, the move is to build a massive buffer of reserves. It aims to build Ghana’s international reserves to the equivalent of 15 months of import cover by 2028.
It is also expected to sustain the Cedi and keep the currency stable and reduce exposure to global shocks. The move is to curb smuggling by formalizing the gold trade and ensure more mineral wealth stays within the national borders.
The Bottomline
Beyond just funding the Goldbod, the Ministry of Finance highlighted a major win in operational efficiency. Under the new MoU, the average cost of gold purchases has been slashed from 14.5 percent to just 5%.
Finance Minister Dr. Cassiel Ato Forson emphasized that the new framework is also designed to deliver maximum value for the taxpayer.
By moving GoldBod’s funding to the main budget and ending BoG’s quasi-fiscal involvement, the government aims to satisfy international partners while giving the cedi the strongest backing it has had in decades.
