The Bank of Ghana (BoG) has stated that the reduction in its gold holdings formed part of deliberate measures to diversify the Bank’s investment portfolio and strengthen reserve management.
BoG’s gold holdings, which stood at 37.1 tonnes as of November 2025, were reduced to 18.1 tonnes by December 2025 following a portfolio rebalancing exercise.
Addressing a news conference after the 128th regular Monetary Policy Committee (MPC) meeting to announce a new policy rate, the Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, explained that the move was in line with an earlier decision to realign the Bank’s asset composition.
“At the last MPC, I recall we spoke about the need to rebalance our portfolio,” Dr Asiama stated.
He explained that the gold holdings were sold to generate foreign exchange, with the proceeds subsequently invested to earn interest for the Bank.
According to him, the transaction formed part of the Bank’s broader reserves accumulation strategy.
“The proceeds were invested and added to our reserves, and they are earning interest. So rest assured, this remains very much part of our reserves accumulation,” the Governor said.
Dr Asiama noted that the reduction was also influenced by comparisons with peer central banks.
He explained that while many comparable countries held between 20 and 25 per cent of their reserve portfolios in gold, Ghana’s holdings had exceeded 40 per cent at the time.
“We observed that most of our peers were holding within 20 and 25 per cent of their portfolios as gold. At the time, we were holding a little over 40 per cent, and the decision was therefore made to diversify,” he said.
The Governor emphasised that the rebalancing exercise had already begun yielding returns, as the invested proceeds were generating income and contributing to reserve growth.
He assured that the Bank’s overall reserves had not declined.
“Nothing has come down. It was simply a rebalancing exercise,” he stressed.
Touching on recent record highs in global gold prices, reportedly exceeding $5,200 per ounce, Dr Asiama cautioned against assuming such levels were permanent.
He explained that gold prices were driven by both transitory and structural factors, and that central bank decisions must be guided by long-term considerations.
“We have to be conservative in our assessment and determine what is optimal based on structural factors,” he said, adding that the Bank would reaccumulate gold in the future and reassess appropriate holding levels.
Dr Asiama further reiterated that the Bank of Ghana is not a profit-making institution, but one mandated to ensure price stability and financial stability.
He acknowledged that fulfilling that mandate involved costs, including policy implementation, revaluation expenses and gold-related costs, which were incurred in the public interest.
On the issue of recapitalisation of the BoG, the Governor said discussions were ongoing with the Minister of Finance.
He noted that recent amendments to the Bank of Ghana Act included provisions for periodic government recapitalisation to strengthen the Bank’s balance sheet.
“Government is committed to recapitalising the Bank to ensure we remain policy solvent and able to carry out our mandate,” Dr Asiama said.
He assured the public that the Bank would continue to serve the national interest, with government support to help shoulder the associated costs.
By Kingsley Asare
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