The Bank of Ghana (BoG) has explained that its recent decision to convert part of the country’s gold holdings into foreign exchange assets was a strategic move aimed at diversifying Ghana’s reserves rather than depleting national assets.
Speaking before Parliament’s Committee on Economy and Development, the Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, emphasized that the gold remains part of Ghana’s national reserves even after the adjustment.
“The gold remains part of our national reserves; what changed was the composition of these reserves,” he told the committee.
The development comes after Ghana significantly increased its gold reserves under the Domestic Gold Purchase Programme. According to the central bank, the country’s gold holdings grew from 8.7 tonnes in 2021 to more than 40 tonnes by October 2025. This increase meant gold accounted for about 42 percent of Ghana’s Gross International Reserves.
At the same time, global gold prices surged sharply. Between January and October 2025, prices rose by about 62 percent, further boosting the value of Ghana’s gold portfolio.
Despite gold’s importance as a reserve asset, Dr. Asiama noted that holding too much of it could expose the country to concentration risk.
“Such a high concentration in a single asset class introduces portfolio concentration risk for countries like Ghana,” he explained.
He pointed out that international financial guidelines, including those referenced by the International Monetary Fund (IMF) and the World Gold Council, often recommend that emerging economies maintain around 20 percent of their reserves in gold to allow for better liquidity and flexibility.
“In light of these considerations, the Bank undertook a measured portfolio rebalancing, converting a portion of its gold holdings into foreign exchange assets to restore a more balanced reserve composition,” the governor said.
According to him, the foreign exchange obtained from the process is being actively invested to generate returns while maintaining Ghana’s external financial buffers.
Dr. Asiama stressed that such rebalancing is a normal practice among central banks around the world and is done periodically to maintain diversification, liquidity, and effective risk management.
The explanation comes at a time when Ghana’s macroeconomic indicators are showing improvement. Inflation has dropped significantly from more than 23 percent at the end of 2024 to 3.3 percent in February 2026. The cedi has also shown signs of stability, while the financial sector continues to strengthen.
Dr. Asiama concluded that the decision was taken to ensure that Ghana’s reserves remain both valuable and readily available when needed.
“This measured rebalancing ensures that Ghana’s reserves remain not only valuable but also liquid and ready for use when needed,” he said.
