Former Finance Minister Alleges BoG Losses Worse Than Reported, Says Gold Sales Masked Financial Crisis
A former Finance Minister has alleged that the financial losses recorded by the Bank of Ghana in 2025 are far worse than officially reported, accusing the central bank of using proceeds from gold reserve sales to cushion operational deficits.
In a statement shared on social media, Dr. Mohammed Amin Adam claimed the Bank of Ghana sold about 18 tonnes of Ghana’s gold reserves accumulated under the previous New Patriotic Party (NPP) administration, generating approximately GH¢40.3 billion in proceeds and a reported net gain of GH¢9.57 billion.
According to the Karaga MP, the gains from the gold sales were reclassified from equity and recognized as realized income in the Bank’s profit and loss account, a move he described as “smart accounting” intended to mask inefficiencies and reckless economic management.
“When I posted on this page on 18th March, 2026, that I was waiting for the Bank of Ghana to publish its financial statements for 2025, I knew they were doing ‘smart accounting’ to mask inefficiencies and reckless management of the economy,” he stated.
He argued that although the central bank officially reported a net loss of GH¢15.6 billion for 2025, the actual losses could have exceeded GH¢25 billion if the gains from gold sales had not been factored into the accounts. He further suggested the figure could rise above GH¢40 billion if details of the gold transactions are fully examined.
“In plain terms: even after selling gold, the Bank still recorded a massive loss. Without it, the situation would have been far worse,” he added.
The lawmaker questioned the Bank of Ghana’s earlier explanation that the gold sales were undertaken to rebalance the country’s reserve portfolio. He contended that there was no obvious macroeconomic justification for reducing gold reserves under a policy framework that had previously aimed at building them.
Dr. Amin Adam also pointed to the high cost of monetary operations, particularly sterilization, which he said reached GH¢16.73 billion in 2025. He maintained that without the proceeds from the gold sales, the Bank’s operating income of about GH¢12.7 billion would have been insufficient to cover those costs.
“This is the hard reality: gold sales were not just about reserve management – they were critical to cushioning a much larger underlying loss,” he stressed.
The former minister credited the Domestic Gold Purchase Programme introduced under former President Mahamudu Bawumia as a major buffer for the central bank during the economic challenges.
“One policy by Dr. Bawumia, the Domestic Gold Purchase Programme, has clearly been a major buffer for the Bank of Ghana. Yet there is an unwillingness to acknowledge this reality,” he stated.
He further accused the current management of the Bank of Ghana of prioritizing optics over sound balance sheet management, arguing that using gold reserves to offset operational losses only conceals the true extent of the financial challenges rather than resolving them.
“Using gold reserves to offset operational losses does not eliminate the problem, it only masks it. It hides the true cost of policy decisions and delays the necessary correction,” he concluded.
Credit: Iddrisu Kumbundoo
