Ghana's gold-for-oil programme terminated after incurring over GH¢2 billion in losses
The Bank of Ghana (BoG) has disclosed that it suffered cumulative losses amounting to GH¢2.137 billion from the Gold for Oil (G4O) initiative since its launch in January 2023.
The Bank of Ghana (BoG) recorded cumulative losses of GH¢2.137 billion from the Gold for Oil (G4O) initiative since its launch in January 2023.
On March 13, 2025, the BoG terminated the G4O programme due to its financial unsustainability.
Despite quadrupling gold reserves to over 32 tonnes by 2025, the oil component of the initiative incurred significant losses.
Specifically, the central bank recorded a loss of GH¢317 million in 2023 and GH¢1.82 billion in 2024.
According to the Bank, it committed approximately GH¢4.69 billion to the programme, effectively losing 45% of its investment in a bid to stabilise fuel prices and strengthen the cedi.
Programme terminated in March 2025
The BoG officially terminated the Gold for Oil programme on 13 March 2025, citing the severe financial losses incurred as the main reason.
Background: A Response to fuel crisis and dollar shortage
G4O was first introduced in December 2022 as a direct response to the escalating fuel prices and foreign exchange crisis. In November 2022, fuel prices had soared, with diesel reaching as high as GH¢23 per litre and petrol around GH¢17 at GOIL filling stations.
Amidst a sharp depreciation of the cedi and rapidly dwindling foreign reserves, the government and BoG opted for an alternative solution—buying petroleum products on the international market using gold instead of US dollars.
Preserving forex and easing pressure on the Cedi
The concept behind the programme was relatively simple: reduce the country's monthly dollar demand—largely driven by fuel imports, which cost around $400 million—and protect foreign reserves. By using gold as a medium of exchange, the central bank hoped to reduce demand for foreign currency, thus easing pressure on the cedi.
Gold accumulation efforts began in 2021
Prior to the launch of G4O, the BoG had already started a domestic gold purchase programme in June 2021. In collaboration with the Precious Minerals Marketing Company (PMMC)—now rebranded as GoldBOD—the Bank acquired gold dore from local miners in cedis, refining it abroad for inclusion in Ghana's official reserves.
The initial aim was to double Ghana's gold reserves within five years. At the time, the reserves stood at 8.74 tonnes. As of 2025, however, the stockpile has exceeded 32 tonnes, nearly quadrupling in less than four years, based on data from the BoG.
Gold for Oil: A bold but costly experiment
The Gold for Oil initiative was eventually merged into the broader domestic gold accumulation strategy. While the gold reserves saw notable growth, the oil component proved unsustainable.
'The scale of the losses made continuation of the programme financially untenable,' a central bank official noted following the announcement of the closure.
Despite its ambition, the G4O programme has now been shelved, leaving behind a mixed legacy—substantial gold reserve growth but heavy financial losses in pursuit of energy price stability and cedi protection.
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Ghana's gold-for-oil programme terminated after incurring over GH¢2 billion in losses
The Bank of Ghana (BoG) has disclosed that it suffered cumulative losses amounting to GH¢2.137 billion from the Gold for Oil (G4O) initiative since its launch in January 2023. The Bank of Ghana (BoG) recorded cumulative losses of GH¢2.137 billion from the Gold for Oil (G4O) initiative since its launch in January 2023. On March 13, 2025, the BoG terminated the G4O programme due to its financial unsustainability. Despite quadrupling gold reserves to over 32 tonnes by 2025, the oil component of the initiative incurred significant losses. Specifically, the central bank recorded a loss of GH¢317 million in 2023 and GH¢1.82 billion in 2024. According to the Bank, it committed approximately GH¢4.69 billion to the programme, effectively losing 45% of its investment in a bid to stabilise fuel prices and strengthen the cedi. Programme terminated in March 2025 The BoG officially terminated the Gold for Oil programme on 13 March 2025, citing the severe financial losses incurred as the main reason. Background: A Response to fuel crisis and dollar shortage G4O was first introduced in December 2022 as a direct response to the escalating fuel prices and foreign exchange crisis. In November 2022, fuel prices had soared, with diesel reaching as high as GH¢23 per litre and petrol around GH¢17 at GOIL filling stations. Amidst a sharp depreciation of the cedi and rapidly dwindling foreign reserves, the government and BoG opted for an alternative solution—buying petroleum products on the international market using gold instead of US dollars. Preserving forex and easing pressure on the Cedi The concept behind the programme was relatively simple: reduce the country's monthly dollar demand—largely driven by fuel imports, which cost around $400 million—and protect foreign reserves. By using gold as a medium of exchange, the central bank hoped to reduce demand for foreign currency, thus easing pressure on the cedi. Gold accumulation efforts began in 2021 Prior to the launch of G4O, the BoG had already started a domestic gold purchase programme in June 2021. In collaboration with the Precious Minerals Marketing Company (PMMC)—now rebranded as GoldBOD—the Bank acquired gold dore from local miners in cedis, refining it abroad for inclusion in Ghana's official reserves. The initial aim was to double Ghana's gold reserves within five years. At the time, the reserves stood at 8.74 tonnes. As of 2025, however, the stockpile has exceeded 32 tonnes, nearly quadrupling in less than four years, based on data from the BoG. Gold for Oil: A bold but costly experiment The Gold for Oil initiative was eventually merged into the broader domestic gold accumulation strategy. While the gold reserves saw notable growth, the oil component proved unsustainable. 'The scale of the losses made continuation of the programme financially untenable,' a central bank official noted following the announcement of the closure. Despite its ambition, the G4O programme has now been shelved, leaving behind a mixed legacy—substantial gold reserve growth but heavy financial losses in pursuit of energy price stability and cedi protection.
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