By Adnan Adams Mohammed
In a move that has sparked intense discussion within Ghana’s financial circles, the Bank of Ghana (BoG) has rebalanced a portion of its gold reserves into foreign exchange assets.
With some observers questioning the timing, prominent banking consultant Dr. Richmond Atuahene has come out in strong support of the central bank, describing the move as a “justified and necessary” strategy to protect the nation’s creditworthiness.
The clarification follows a recent briefing by BoG Governor Dr. Johnson Pandit Asiama to Parliament’s Economy and Development Committee regarding the central bank’s reserve management and the broader health of the banking sector.
Liquidity vs. long-term buffers
Dr. Atuahene explained that while gold is an excellent long-term hedge, it cannot always settle immediate “hard currency” bills. He noted that Ghana faced a significant external debt hurdle early this year including a critical Eurobond maturity at a time when fresh foreign currency inflows were limited.
“Just having the gold does not automatically boost your reserves if you cannot manage it well,” Dr. Atuahene argued. “When you have a liability to pay, you need to make sure you pay it. The government has not generated any foreign currency, so what you have to do is reduce your gold reserves and get money to pay the debt.”
He emphasized that under the Foreign Exchange Act, the BoG is mandated to manage reserves dynamically to ensure the cedi remains stable and that the state does not default on its international obligations.
The success of the Gold Purchase Programme
The decision to rebalance comes from a position of relative strength. Since the launch of the Domestic Gold Purchase Programme, Ghana’s gold holdings have seen an unprecedented surge:
2021 Holdings: ~8.7 tonnes
October 2025 Holdings: Over 40 tonnes
Reserve Share: Gold now constitutes roughly 42% of Ghana’s Gross International Reserves.
A standard central bank maneuver
Dr. Atuahene maintained that converting gold to liquid foreign exchange is a standard tool in a central bank’s arsenal. By rebalancing, the BoG was able to maintain adequate liquidity in its portfolio, ensuring that the “New Year” debt obligations were met without triggering a currency crisis or a dip in investor confidence.
“In foreign exchange management, you hedge in gold and other assets to make sure the cedi remains stable,” he added.
As Ghana continues to navigate its post-debt-restructuring landscape, the BoG’s ability to pivot between physical gold and liquid cash will likely remain a cornerstone of its strategy to keep the economy afloat amid global volatility.
