The Bank of Ghana has explained the recent decline in its gold reserves, saying the move was part of a deliberate strategy to diversify its reserve portfolio and improve returns.
The Governor of the Bank of Ghana, Dr. Johnson Asiama, revealed that Ghana’s gold holdings were reduced after assessments showed the central bank was over-exposed compared to its peers.
According to him, while most comparable central banks held between 20 and 25 percent of their reserves in gold, the Bank of Ghana’s exposure had risen to over 40 percent.
“We observed that most of our peers were holding between 20–25% of their portfolios as gold at the time we were holding over 40%. So, a decision was made to diversify our portfolio,” Dr. Asiama said.
He explained that the decision to rebalance the reserves was aimed at strengthening returns and improving overall reserve management.
Dr. Asiama noted that proceeds from the diversification exercise have been redirected into foreign exchange assets, which are already yielding positive results.
“The FX [foreign exchange] is gaining dividends and contributing to reserve accumulation,” the Governor added.
The comments follow reports showing a decline in Ghana’s gold holdings to 18.6 tonnes, sparking public discussion about the country’s external reserves position.
However, the Governor assured that the move does not signal weakness, but rather reflects a more balanced and prudent reserve management strategy.
The Bank of Ghana maintains that the diversification will enhance liquidity, support external buffers, and reinforce the country’s capacity to manage shocks in the global economy.
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