Gold Divestment Leaves Ghana’s Reserves Intact – BoG

The Bank of Ghana has moved to allay public concerns following reports that part of the country’s gold reserves had been liquidated, insisting that Ghana has not suffered any loss of national assets.

According to the Central Bank, the transaction in question involved converting a portion of its gold holdings into foreign exchange assets, not a write down or depletion of reserves.

In a statement responding to growing public debate, the Bank stressed that the value of the gold was preserved and remains part of Ghana’s international reserves.

“The gold was liquidated into FX and not written down,” the Bank stated, adding that “the FX remains fully part of Ghana’s international reserves and is being actively invested.”

The clarification comes amid speculation that the liquidation of gold may have weakened Ghana’s reserve position. The Central Bank, however, rejected that narrative, noting that the move was a standard reserve management decision rather than an emergency response to financial stress.

“There was no loss of national assets. Rather, the value realised was preserved and reinvested, as overall reserves remain strong and continue to support external stability.” The BoG explained that such conversions are common among central banks seeking to manage risk and liquidity within their reserve portfolios.

Providing further detail, the Bank of Ghana explained that proceeds from the gold liquidation were redeployed into high quality and liquid foreign exchange assets, as well as fixed income instruments.

These investments, it said, are consistent with accepted central bank reserve management guidelines which prioritize safety, liquidity and returns.

The Bank also revealed that part of the funds is being managed through external professional fund managers. This approach, according to the BoG, aligns with standard central banking practice and is intended to enhance returns while maintaining strict risk controls.

The Central Bank reiterated that it “liquidated a portion of its gold holdings on the international market as part of a deliberate reserve portfolio diversification strategy.”

Background

Ghana’s gold reserves have seen significant changes over the past two years. In December 2024, the country’s gold reserves stood at 30.53 tonnes. During 2025, the Bank of Ghana purchased an additional 10.32 tonnes, raising total holdings substantially.

However, in line with its strategic objective of reducing gold’s share of Gross International Reserves to 20 percent, and with approval from Management and the Board, the Bank divested approximately 22.24 tonnes on the international market. This adjustment reduced gold holdings from a peak of about 38 tonnes in October 2025 to 18.61 tonnes by the end of the year.

The Central Bank attributed the decision largely to sharp increases in global gold prices over the past two years. These price movements caused gold to account for an unusually large share of reserve portfolios worldwide. In Ghana’s case, gold’s share of Gross International Reserves rose to over 40 percent due to sustained accumulation and rising prices.

By comparison, the Bank noted that many peer central banks typically maintain gold holdings of about 20 to 25 percent of total reserves.

“While gold remains an important reserve asset, such a high concentration in a single asset class increases exposure to price swings and weakens portfolio balance,” the Bank explained.

Reducing gold’s share, the BoG said, was therefore necessary to limit concentration risk, improve liquidity and align Ghana’s reserve composition with international benchmarks.

The Bank of Ghana emphasised that the decision was consistent with best international practices in reserve management. Reserve portfolios, it noted, are typically diversified across asset classes to avoid excessive exposure to a single asset. Periodic rebalancing, particularly after major asset price movements, is regarded as standard practice among central banks globally.

According to the BoG, the gold liquidation was driven by prudence rather than pressure. The Central Bank stressed that the move was strategic and diversification driven, not a crisis response.

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Looking to the future, the Bank of Ghana indicated that reserve portfolio adjustments may continue, depending on global market conditions, asset price movements and liquidity requirements. It explained that “further adjustments may be made over time as conditions evolve, always guided by best practice in reserve management and the objective of safeguarding Ghana’s external position.”

Reiterating its core message, the Central Bank maintained that Ghana’s reserves remain intact, invested and strong. “Ghana’s reserves remain intact, invested and strong,” the Bank said, adding that the action reflects prudence, not pressure.