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The Bank of Ghana (BoG) has explained that the sharp drop in Ghana’s gold holdings from 37.1 tonnes to 18.6 tonnes between September and December 2025 is not a loss of national assets but the result of a deliberate reserve management strategy.
According to the Governor of the Bank of Ghana, Dr Johnson Asiama, gold at one point accounted for more than 40 percent of Ghana’s total international reserves, far above the 20 to 25 percent range common among peer economies.
To reduce concentration risk and strengthen the resilience of the country’s reserves, the central bank decided to rebalance its reserve portfolio by converting part of its gold holdings into foreign exchange.
Dr Asiama clarified that the proceeds from the gold conversion remain fully within Ghana’s international reserves and are being actively invested to support reserve accumulation and generate returns.
He stressed that the move represents a change in the composition of reserves rather than a depletion of national wealth, noting that effective reserve management requires periodic adjustments in response to market conditions and risk exposure.
The Governor assured the public that the Bank of Ghana continues to closely monitor reserve developments and will make further adjustments when necessary, in line with international best practices.
He also encouraged market participants and the general public to refer to the full Monetary Policy Committee press briefing for a broader understanding of the decision and the central bank’s overall reserve strategy.
BoG’s reserve rebalancing strategy
In December 2025, the Bank of Ghana announced 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 broader strategic asset allocation framework aimed at aligning reserve composition with long-term objectives.
By adjusting its exposure to gold, the BoG said it sought to reduce vulnerability to gold price volatility and minimise the need for active hedging within its defined risk parameters.
The central bank emphasised that its approach is not speculative, as decisions on reserve composition are guided by long-term stability and financial resilience rather than short-term market movements.
The rebalancing, according to the BoG, is intended to improve Ghana’s external reserve management efficiency while maintaining confidence in the country’s monetary framework amid global commodity price uncertainties.
