Former finance minister Mohammed Amin Adam has criticised the Bank of Ghana over its 2025 financial results, arguing that the central bank’s losses are significantly higher than officially reported.
In a Facebook post following the release of the Bank’s audited accounts, the Karaga MP said the reported net loss of 15.6 billion cedis understated the true scale of the central bank’s financial position due to accounting treatment of gains from gold sales.
According to the Bank’s report, the disposal of about 18 tonnes of gold generated proceeds of roughly 40.3 billion cedis, with a net gain of 9.57 billion cedis recorded.
Amin Adam said the gain was reclassified from equity and recognised in the profit and loss account, effectively cushioning the reported loss figure.
“If these gold gains had not been recognised, the loss would have exceeded 25 billion cedis,” he said, adding that a deeper assessment of the transactions could push the figure even higher.
The central bank has said the gold sales were part of efforts to rebalance its reserve portfolio, but Amin Adam questioned that justification, arguing that there was no clear macroeconomic need to reduce gold holdings under existing policy frameworks.
He said the Bank’s own disclosures showed that proceeds from gold sales were critical in supporting its ability to finance monetary policy operations.
The financial statements indicated that the Bank’s policy solvency position in 2025 was “underpinned by a substantial inflow from bullion gold sales,” particularly as the cost of sterilisation rose sharply.
Sterilisation costs reached 16.73 billion cedis in 2025, while underlying operating income would have been insufficient to cover those expenses without the gold-related inflows, he said.
“This is the hard reality: gold sales were not just about reserve management – they were critical to cushioning a much larger underlying loss,” Amin Adam said.
He linked the buffer to the Domestic Gold Purchase Programme introduced under the previous administration, arguing that accumulated reserves had helped absorb financial pressures.
The Bank of Ghana has attributed its losses to the high cost of monetary policy operations, the impact of Ghana’s debt restructuring and exchange rate movements, while maintaining that it remains operational and expects improved macroeconomic conditions to ease pressures.
Amin Adam, however, said using reserve assets to offset losses masked underlying policy challenges.
“Using gold reserves to offset operational losses does not eliminate the problem – it only hides the true cost of policy decisions,” he said.
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