BoG Withdraws from Gold for Oil Programme After GH¢41.82 Billion Loss

The Bank of Ghana (BoG) has officially withdrawn from the government’s flagship Gold for Oil programme following massive financial losses, marking a significant shift in the country’s monetary policy direction.

The decision was taken during a board meeting held on March 13, 2025, and follows the central bank’s disclosure of a GH¢41.82 billion loss in the 2024 financial year, largely tied to its involvement in the programme. This figure represents a dramatic increase from the GH¢317 million loss recorded the previous year.

According to the BoG’s 2024 financial report, the central bank had committed GH¢4.69 billion in seed capital to the initiative. Notably, GH¢1.82 billion of the total loss was directly attributed to the Gold for Oil scheme.

Launched as a measure to reduce reliance on foreign currency for oil imports, the programme aimed to use locally mined gold to purchase petroleum products. The initiative was intended to stabilise fuel prices and ease pressure on Ghana’s foreign exchange reserves.

However, the mounting financial toll has prompted the BoG to pull out, raising concerns about the viability of the programme moving forward. The central bank’s exit signals growing caution regarding fiscal sustainability and foreign exchange risk management.

It remains unclear how the government plans to restructure or sustain the Gold for Oil initiative in the wake of BoG’s withdrawal.