The Bank of Ghana (BoG) sold 22.24 metric tonnes of gold reserves as part of deliberate portfolio diversification, converting bullion into foreign exchange assets.
Governor Dr. Johnson Asiama confirmed the transaction involved reallocation within reserves rather than a drawdown, with proceeds redeployed into high quality liquid foreign exchange assets and fixed income instruments. The central bank emphasized that gold’s share of Gross International Reserves (GIR) had risen above 40 percent by late 2025, substantially higher than the 20 to 25 percent typically held by peer central banks.
At the end of December 2024, Ghana’s gold reserves stood at 30.53 tonnes. During 2025, the bank purchased a total of 10.32 tonnes through its domestic buying program. However, under authorization from management and the board, approximately 22.24 tonnes were divested on the international market, bringing holdings down from a peak of 38 tonnes in October to 18.61 tonnes by year end.
The decision followed extensive assessments of concentration risk arising from sharp increases in global gold prices over the past two years. While gold remains an important reserve asset, central bank officials argued that excessive concentration in a single asset class increases exposure to price swings and reduces portfolio balance.
The bank’s briefing notes issued to support accurate reporting explained the move was strategic diversification rather than crisis response. The gold was converted into foreign exchange and not lost, with reserves remaining intact, invested and strong. Officials characterized the action as reflecting prudence rather than pressure.
Proceeds from the liquidation were redeployed according to central bank reserve guidelines, with a portion managed through external professional fund managers to enhance returns while maintaining strong risk controls. The approach aligns with international best practice requiring reserves to be diversified across asset classes to avoid excessive concentration.
Central bank reserve management follows three core principles of safety, liquidity and return. Periodic rebalancing, particularly after large asset price movements, represents standard practice among central banks worldwide. The BoG emphasized its actions remain consistent with international reserve management principles and practices observed among peer institutions.
The bank indicated it will continue monitoring global financial market conditions, asset price movements, liquidity needs and risk exposures. Further adjustments may be made over time as conditions evolve, always guided by best practice and the objective of safeguarding Ghana’s external position.
Financial analyst Richmond Eduku defended the decision in a statement, describing it as strategic for stabilizing the economy and easing pressure on ordinary Ghanaians. He argued that holding over 40 percent of reserves in gold at a time when the country grappled with soaring inflation of 23.8 percent amounted to leaving a critical resource idle while citizens suffered.
Between December 2024 and December 2025, total international reserves increased from $9.3 billion to $13.8 billion. Inflation declined from 23.8 percent to 5.4 percent, while the Monetary Policy Rate (MPR) fell from 26 percent to 18 percent. These measures helped ease economic pressure, reduce costs for fuel and goods, and create a more stable business environment.
In December 2024, Ghana faced substantial arrears across critical sectors. Government arrears were estimated at GH¢67.5 billion, excluding GH¢68 billion owed by the Electricity Company of Ghana (ECG), GH¢32 billion owed by COCOBOD and $1.73 billion owed to Independent Power Producers (IPPs). Contractors were owed GH¢21 billion in road sector payments alone.
The Mahama government has addressed these arrears since assuming office. Notable payments include GH¢115.9 million in premix fuel arrears clearing subsidies owed to small scale fishers, and GH¢13 billion allocated in 2025 to settle verified contractor claims. These steps helped restore confidence and ease liquidity pressures in the economy.
The government prioritized external debt servicing, making approximately $1.17 billion in Eurobond payments during 2025. These payments reduced Ghana’s overall debt burden, lowered the debt to Gross Domestic Product (GDP) ratio, and strengthened the country’s credibility with international investors.
In the energy sector, the government cleared $1.47 billion in legacy debts, including $597 million to restore World Bank guarantees, $480 million in outstanding gas invoices, and $393 million owed to Independent Power Producers. These interventions helped stabilize energy supply, critical for both households and businesses.
Eduku noted Ghana’s approach aligns with global best practices. While Ghana previously held over 40 percent of reserves in gold, peer countries such as Chile and Brazil maintain only 20 to 25 percent, diversifying the remainder into foreign currency assets. This enables central banks to enhance liquidity, generate returns and ease economic pressure while maintaining strong buffers against external shocks.
Dr. Frank Bannor, a Development Economist and Senior Research Fellow at the Institute of Economic Research and Public Policy, questioned the sharp decline in gold holdings. He described the development as deeply concerning given the speed and scale of the drawdown, calling for public explanation from the central bank governor.
Bannor noted the decline appears particularly puzzling given Ghana’s otherwise strong external sector indicators during the same period. Gross International Reserves rose to $13.83 billion by December 2025, up from $9.11 billion in December 2024. He argued gold reserves carry strategic importance for a gold producing country and should not be drawn down without clear public justification.
The economist questioned whether gold was sold outright, pledged as collateral, swapped for liquidity, or used in an off market arrangement. He warned that failure to clearly explain the transaction could undermine public confidence in reserve management and monetary governance at a time when transparency remains critical to Ghana’s economic recovery.
Professor Isaac Boadi emphasized that such drastic drawdown would only be warranted in abnormal circumstances, such as the bank not receiving foreign exchange inflows, outflows exceeding reserves despite the surplus, or urgent need for deployable foreign exchange to handle unreported pressures. This implies that even with the headline current account surplus, the bank’s immediate liquidity needs could not be met by the surplus alone.
Ghana’s drawdown contrasts sharply with broader global trends. Data from the World Gold Council show central banks worldwide remain aggressively bullish on gold, continuing a buying spree that began in earnest in 2022. As of the end of third quarter 2025, total central bank gold accumulation for the year had reached 634 tonnes.
Between 2010 and 2021, central banks purchased an average of 473 tonnes annually. That trend was shattered in 2022, when net purchases hit 1,136 tonnes, followed by 1,051 tonnes in 2023 and 1,045 tonnes in 2024. These figures highlight a structural shift in reserve management, driven by heightened geopolitical tensions, sanctions risks and concerns over dominance of the United States (US) dollar in global finance.
World Gold Council data show central banks began 2025 with continued enthusiasm for bullion, recording 18 tonnes of net purchases in January alone. Uzbekistan topped the list with 8 tonnes, bringing total holdings to 391 tonnes, equivalent to 82 percent of its total reserves. China’s central bank added 5 tonnes, lifting holdings to 2,285 tonnes, marking its third consecutive month of net purchases.
Kazakhstan added 4 tonnes, taking gold reserves to 288 tonnes, representing 55 percent of total reserves. Notably, Kazakhstan combined gold purchases with sale of US dollars through mirroring operations, explicitly using gold as a tool to protect its economy from external shocks. Other notable buyers included Poland and India, each adding 3 tonnes, alongside the Czech Republic with 2 tonnes and Qatar with 1 tonne.
Within Africa, Ghana’s 18.6 tonnes places it behind several peers. Libya holds 146.65 tonnes, Egypt 128.82 tonnes, and South Africa 125.47 tonnes. Nigeria, Africa’s largest economy, holds 21.44 tonnes, only slightly above Ghana, while Mauritius holds 12.42 tonnes.
Globally, the United States leads with 8,133.46 tonnes, followed by Germany at 3,350.25 tonnes, Italy with 2,451.84 tonnes and France with 2,437 tonnes. China, with 2,303.51 tonnes, and Russia, with 2,329.63 tonnes, reflect strategic accumulation over the past decade.
In August 2025, Governor Asiama announced plans to hedge part of the central bank’s gold holdings to manage price volatility. The strategy involves locking in future prices using derivatives such as futures or options, thereby protecting the value of reserves against sudden price declines. The governor indicated the bank would begin by hedging a fraction of the stockpile, scaling up to a maximum of one third of total reserves.
Hedging offers several advantages, including protection from sharp price declines, enhanced predictability in fiscal and monetary planning, and strengthened balance sheet resilience during periods of uncertainty. However, it also carries risks. If gold prices continue surging beyond hedged levels, the bank could forgo potential windfall gains. Execution costs, market timing and technical complexity also pose challenges.
Governor Asiama stated reserves have continued building, describing the change as portfolio adjustment rather than weakening of external buffers. He noted gross international reserves stood at $13.8 billion at end December 2025, equivalent to 5.7 months of import cover, up from $9.1 billion or 4.1 months a year earlier.
The governor cautioned against reading too much into the current rally in gold prices, noting not all drivers are permanent. He said future decisions on gold holdings will be guided by structural considerations and assessment of what level is optimal for Ghana’s reserves. The central bank plans to continue rebuilding reserves this year while reviewing the appropriate balance between gold and other assets.
Gold played a key role in Ghana’s improved external position. The country recorded a provisional current account surplus of $9.1 billion in 2025, a major jump from $1.5 billion the previous year, supported by strong gold export earnings, higher private transfers and lower services payments. Gold dominated the export profile, accounting for 67 percent of total shipments.
Export receipts from the metal, estimated at $20.97 billion, were sufficient to outweigh the $17.5 billion spent on imports of all goods combined. Those inflows, combined with capital inflows, produced a balance of payments surplus of $3.98 billion, helping to stabilize the cedi.
The currency appreciated by 40.7 percent against the US dollar in 2025 after a 19.2 percent depreciation in 2024, a development the central bank described as a correction. The development resulted from reserve accumulation, tight monetary policy and favorable global conditions.
The Ghana Gold Board, established in early 2025 under Act 1140, centralized the country’s gold trade, particularly from artisanal and small scale sectors. The agency generated over $8 billion in foreign exchange between January and October 2025, exporting 81,719.23 kilograms. This marked sharp increase from $4.61 billion recorded in 2024 and nearly quadrupled the $2.19 billion achieved in 2023.
Egypt and the African Export Import Bank have announced plans for a Pan African Gold Bank following the success of national programs like Ghana’s initiative. The proposed institution would provide continental infrastructure needed to process and refine gold that countries are now successfully bringing into legitimate channels. Africa produces roughly 30 percent of global gold output.
Looking ahead, market participants will closely monitor how the bank manages the balance between gold accumulation and foreign currency holdings. With gold prices at record levels above $5,200 per ounce as of late January 2026, the timing of the sales continues to generate debate about whether Ghana maximized value from its strategic reserves.
The central bank’s commitment to transparency and clear communication about reserve management decisions will be crucial for maintaining public confidence. As Ghana continues its economic recovery, the effectiveness of the gold diversification strategy in supporting macroeconomic stability while preserving strategic buffers will remain under scrutiny from economists, investors and policymakers.
