BoG Governor Assures Stability after Sharp Drop in Gold Reserves
By Praisebell Rosemond Larbi
The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has moved to calm public anxiety following a sharp decline in Ghana’s gold reserves in the final quarter of 2025, stressing that the development reflects a deliberate and well-calculated portfolio rebalancing, not a loss of national wealth.
Concerns were sparked after the Bank of Ghana’s Summary of Economic and Financial Data showed that the country’s gold holdings fell from 37.1 tonnes to 18.6 tonnes, representing a reduction of about 50 per cent within a short period. Given gold’s traditional status as a safe haven, especially at a time of record global prices, the figures raised questions among analysts, investors and the general public.
However, speaking to journalists after the first Monetary Policy Committee (MPC) meeting of 2026, Dr. Asiama dismissed fears that the country had weakened its external position. He explained that the reduction was the result of a strategic decision to rebalance Ghana’s reserve portfolio, which had become excessively concentrated in gold.
“When we reviewed our reserve composition, we realised that we were heavily overweight in gold. At the time, gold accounted for a little over 40 per cent of our reserves, whereas most of our peer countries hold between 20 and 25 per cent,” the Governor said.
According to him, this concentration exposed Ghana to unnecessary risk. While gold offers long-term value preservation, it does not generate income and can be volatile, especially when prices are being driven by short-term global shocks.
“Essentially, we were putting too many eggs in one basket, explaining that the Bank therefore decided to diversify part of its holdings,” Dr. Asiama noted.
The Governor clarified that the gold was not lost, but converted into foreign exchange, which has since been reinvested in income-generating foreign assets.
“The FX that was earned as a result is there. It is earning returns, and it is contributing to overall reserve accumulation. So, there is absolutely no cause for alarm,” he said.
He emphasised that Ghana’s gross international reserves remain intact and are still growing, adding that the country’s external buffers remain strong.
Dr. Asiama also addressed questions about the timing of the sale, given that gold prices are currently trading at historic highs. While acknowledging the attractiveness of current price levels, he cautioned against assuming such prices will be permanent.
“There are several factors driving gold prices. Some are structural, but others are transitory. What we are seeing now may be driven more by short-term uncertainty. Policymaking must be guided by long-term fundamentals, not short-term excitement,” he explained.
Importantly, the Governor revealed that the Bank of Ghana has already begun plans to rebuild its gold holdings in a measured and prudent manner. Reaccumulation, he said, will resume in 2026, after which the Bank will reassess the optimal level of gold reserves appropriate for Ghana’s economic structure and risk profile.
“The objective is not to abandon gold, but to hold it at an optimal level that balances safety, liquidity and returns,” he stressed.
In effect, Dr. Asiama described the move as a calculated adjustment designed to strengthen Ghana’s reserve management framework rather than weaken it. In simple terms, he said, nothing has been lost. Ghana has merely restructured how it holds its wealth, prioritising resilience, diversification and long-term stability over headline optics.
