Former Finance Minister and Karaga MP Dr Mohammed Amin Adam has raised fresh concerns about the financial reporting practices of the Bank of Ghana, arguing that the institution’s 2025 losses were significantly understated in public discourse due to the accounting treatment of gold sales.
In a Facebook post on Friday, May 1, Dr Amin Adam said the central bank’s reported GH¢15.6 billion net loss does not reflect the full extent of underlying fiscal strain, insisting that the inclusion of gold-related gains materially altered the final outcome.
He explained that the Bank reportedly sold about 18 tonnes of gold reserves, generating GH¢40.3 billion in proceeds and a net gain of GH¢9.57 billion, which was subsequently recognised in the profit and loss account after being reclassified from equity.
According to him, this accounting move effectively reduced the headline loss, warning that without it, the deficit could have exceeded GH¢25 billion, depending on how the transactions are fully assessed.
Dr Amin Adam further pointed to the cost of monetary operations, particularly sterilisation expenses of GH¢16.73 billion in 2025, arguing that these costs reveal deeper structural inefficiencies in policy implementation.
He noted that the Bank’s reported “policy solvency position” was, in his view, significantly supported by inflows from bullion gold sales, raising questions about sustainability.
“If these gold gains had not been recognised, operating income would not have been sufficient to cover sterilisation costs,” he argued.
The former Finance Minister also linked the discussion to the Domestic Gold Purchase Programme introduced under the previous administration led by former Vice President Mahamudu Bawumia, describing it as a key buffer that strengthened the central bank’s balance sheet during periods of pressure.
He maintained that the current reliance on gold disposals highlights what he described as “optics over substance” in financial management, warning that such practices may obscure the true cost of monetary policy decisions.
Dr Amin Adam concluded that while gold sales may provide temporary relief, they do not resolve the underlying drivers of the Bank’s losses, urging greater transparency in interpreting the 2025 financial statements.