The International Monetary Fund (IMF) has raised concerns over the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), warning that losses linked to the initiative could pose financial risks to the central bank if not carefully managed.

The concerns were outlined at the end of an IMF mission to Ghana led by mission chief Ruben Atoyan. The team visited Accra to review Ghana’s economic programme under the Extended Credit Facility and discuss a new Policy Coordination Instrument with government officials.

In its statement issued on Friday, the International Monetary Fund acknowledged that Ghana’s economy has made significant progress in recent months. According to the Fund, inflation has eased considerably, foreign reserves have improved, confidence in the cedi has strengthened, and economic growth in 2025 exceeded earlier expectations.

Despite these gains, the IMF cautioned that the Domestic Gold Purchase Programme could create financial vulnerabilities for the central bank if transparency and oversight are not strengthened.

The Fund stressed the importance of maintaining prudent monetary policies to keep inflation under control and preserve confidence in the economy.

“Maintaining a forward-looking, prudent monetary policy is instrumental to firmly anchoring inflation expectations,” the IMF stated.

It added that strengthening confidence in monetary policy should include efforts to reinforce the Bank of Ghana’s balance sheet.

The IMF specifically pointed to losses associated with the Domestic Gold Purchase Programme, warning that they highlight the dangers of quasi-fiscal activities undertaken by central banks.

“The losses associated with the Domestic Gold Purchase Programme underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet,” the Fund said.

The IMF further advised that any future costs related to the programme should be properly reflected in the national budget to improve accountability and oversight.

According to the Fund, protecting the Bank of Ghana’s balance sheet from risks linked to the programme will be critical for maintaining financial stability.

The IMF’s comments come at a time when Ghana’s economy is showing signs of recovery under the ongoing support programme. The Fund praised government efforts to improve fiscal discipline, noting that Ghana’s debt levels have declined while investor confidence has improved following the successful return of domestic treasury bond issuance.

The IMF also confirmed that Ghana and the Fund have reached a staff-level agreement on policies to support a new 36-month non-financing programme that will continue reforms after the current bailout arrangement ends.

However, the Fund warned that Ghana remains vulnerable to external shocks, especially tensions and conflict in the Middle East, which could drive up global prices for fuel, food, and fertiliser.

It also urged authorities to avoid repeating past policy mistakes such as persistent fiscal deficits, rising debt levels, weak financial buffers, and policy reversals.

The IMF stressed that sustaining disciplined economic policies and accelerating reforms will be essential for preserving the gains Ghana has made so far.