Dr. Johnson Asiama
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has explained that the recent reduction in the gold holdings reflects a deliberate reserve management decision rather than a loss of national assets.
The nation’s gold reserves declined from 37.1 tonnes in September to 18.6 tonnes by December 2025, a development that sparked public concern.
However, Dr. Asiama said the adjustment was necessary to address concentration risk within the country’s international reserves.
According to the Governor, gold had at one point accounted for over 40 percent of the country’s total reserves, which is well above the 20 to 25 percent range typically observed among peer economies.
He said such exposure increased vulnerability to price swings in the global gold market.
“To strengthen reserve resilience and reduce risk, the Bank took a prudent decision to rebalance the portfolio by converting part of the gold holdings into foreign exchange,” he explained.
Dr. Asiama stressed that the proceeds from the conversion remain fully within the country’s international reserves and are being actively invested to support reserve accumulation and generate returns.
He emphasised that the move represents a change in the composition of reserves, not a depletion of national wealth.
He noted that effective reserve management requires periodic adjustments in response to evolving market conditions and risk exposures, adding that the BoG continues to monitor developments closely and will make further adjustments when necessary, in line with international best practice.
The Governor urged the public and market participants to place the decision within its broader policy context by consulting the full Monetary Policy Committee (MPC) press briefing and related documentation.
In December 2025, the Bank of Ghana had disclosed in its Monetary Policy FAQs that it was undertaking a strategic rebalancing of its total foreign reserves, including a partial divestment of gold holdings. The move forms part of the Bank’s long-term strategic asset allocation framework.
Dr. Asiama said by reducing its exposure to gold, the BoG sought to limit vulnerability to price volatility and minimise the need for active hedging within its defined risk parameters.
The Central Bank also explained that its approach to reserve management is not speculative and is guided by long-term stability and financial resilience rather than short-term market movements.
The Bank said the rebalancing was intended to improve the efficiency of the country’s external reserve management while maintaining confidence in the country’s monetary and financial framework amid global commodity price uncertainties.
By Enest Kofi Adu