Bank of Ghana Defends Decision to Cut Gold Reserves Amid Diversification Drive
The Bank of Ghana has provided clarification on its decision to significantly reduce its gold reserves, confirming that the share of bullion in the country’s international reserves has been cut by about 51 per cent as part of a broader strategy to improve liquidity and investment returns.
The Governor of the Bank of Ghana, Dr Johnson P. Asiama, explained that the move was taken after gold holdings rose to more than 40 per cent of total reserves, a level the central bank considered overly concentrated and risky.
Dr Asiama made this known at the 128th Monetary Policy Committee press briefing held in Accra, stating that the decision to rebalance the reserve portfolio was driven by the need to diversify assets.
He said the central bank sold a portion of its gold holdings and reinvested the proceeds into income generating foreign currency assets. According to him, the strategy has strengthened reserve accumulation rather than weakened it.
The Governor noted that the policy shift has begun to yield results, with the new investments generating returns and contributing positively to the country’s reserve position.
The reduction in gold exposure comes at a time when global gold prices have surged to record highs, with spot prices rising above 5,200 dollars per ounce in late January. However, Dr Asiama cautioned that the current rally may not be sustained over the long term.
While acknowledging the strong performance of gold, he indicated that the price increases could be temporary and should not be viewed as a permanent trend.
Despite the reduction in bullion holdings, Ghana’s gross international reserves increased to 13.8 billion dollars at the end of December 2025. This represents an import cover of 5.7 months, up from 9.1 billion dollars recorded during the same period the previous year.
