By Adnan Adams Mohammed
The Bank of Ghana (BoG), will forever remember the year 2025 as the moment it traded the “glitter” of gold for the “gears” of a diversified economy.
As global gold prices shattered records, climbing above US$5,200 per ounce, the central bank executed a bold maneuver: liquidating nearly 22 tonnes of its gold reserves to bolster its foreign exchange (FX) coffers. While the move sparked immediate public debate, the data tells a story of clinical precision rather than a crisis response.
The rationale behind the move is rooted in a fundamental rule of investing: Diversification. By late 2025, Ghana’s aggressive gold-buying program, combined with skyrocketing global prices, had pushed gold’s share of the nation’s Gross International Reserves (GIR) to over 40%. To put that in perspective, most peer central banks maintain a gold “weight” of just 20% to 25%.
“We observed that most of our peers were holding between 20–25% while we were over 40%,” explained Governor Dr. Johnson Asiama. “The decision was made to diversify.”
By reducing holdings from 38 tonnes to 18.6 tonnes, the BoG effectively “sold high,” locking in massive gains from the bullion market to strengthen the country’s liquidity position.
Liquidated, Not Lost
The most critical point of the BoG’s defense is the distinction between a write-down and liquidation.
A write-down occurs when an asset loses value and is removed from the books (a loss) whereas liquidation is the act of selling an asset to convert it into another form of value in this case, hard currency.
The BoG insists that every ounce of gold sold still exists within the national reserves, just in a different “wrapper.” The proceeds have been redeployed into high-quality liquid FX assets and fixed-income instruments. Unlike gold, which sits in a vault and pays no interest, these new assets are actively “gaining dividends” and contributing to the continuous accumulation of reserves.
Why Now? The “Yield” Factor
While gold is a “safe haven,” it is a non-yielding asset. It provides security during turmoil but offers no interest payments. By shifting roughly 50% of its gold exposure into FX assets, the BoG has turned a static pile of metal into an active engine of income.
This income acts as a buffer for the Cedi, supporting the country’s capacity to manage global economic shocks and maintain a stable exchange rate.
A New Era: “GoldBod”
The rebalancing act also signals a shift in institutional roles. From January 2026, the BoG is stepping back from the day-to-day “emergency” trading of small-scale gold. This responsibility moves to the Ghana Gold Board (GoldBod), a move designed to shield the central bank from the fiscal risks of commodity trading.
This allows the BoG to return to its core mandate: Reserve Management. By stripping away the operational “noise” of buying and assaying gold, the Bank can focus on the macro-strategy of keeping Ghana’s financial heart beating.
The Verdict: Prudence over Pressure
The numbers don’t lie. Ghana’s Gross International Reserves ended 2025 at US$13.8 billion (5.7 months of import cover), up significantly from US$9.1 billion a year earlier. This growth occurred because of the gold rebalancing, not in spite of it.
In the high-stakes game of central banking, the Bank of Ghana has chosen to “ride the wave” of record gold prices to build a more liquid, income-generating future. As Governor Asiama puts it, the action reflects “prudence, not pressure.” In a world of US$5,000 gold, sometimes the smartest move is knowing when to take your seat at the table and trade.
