BoG Defends Gold Sales, Says Reserves Remain Strong
The Bank of Ghana (BoG) is making headlines after an adjustment in the composition of the country’s international reserves, specifically through the liquidation of a portion of its gold holdings.
The gold holdings dropped from 37.1 tonnes to 18.6 tonnes between September and December 2025, about a 50% decline as a result.
For many observers, this raises questions about stability of the economy. However, the decision by the Central Bank was a deliberate rebalancing exercise to modernise the portfolio and reducing risk.
In giving you the background, Ghana held 30.53 tonnes of gold at the end of December 2024. In 2025, the Bank purchased an additional 10.32 tonnes. However, to reach the strategic target of reducing gold’s share of the GIR to 20%, the Bank divested approximately 22.24 tonnes on the international market.
This scale of rebalancing brought the total gold holdings from a peak of 38 tonnes in October 2025 to 18.61 tonnes by the end of the year. The Bank maintains that, this is strategic diversification, not a crisis response.
What exactly did the Bank of Ghana do?
The Bank converted part of its gold portfolio into foreign exchange (FX) assets. It is important to note that this was not a write-down or a loss of national asset. Rather, the gold was sold on the international market to acquire other liquid assets.
This process is known as a reallocation – meaning the value remains within Ghana’s international reserves and is being actively reinvested into other instruments. Simply, a reallocation within reserves, not a drawdown of reserves.
Why was the decision taken?
The rationale was the sharp rise in global gold prices over the past two years. As gold prices surged, the value of gold as a percentage of Ghana’s Gross International Reserves (GIR) also increased significantly.
Before the rebalancing, gold accounted for over 40 per cent of Ghana’s total reserves.
In contrast, many peer central banks typically maintain gold holdings at approximately 20 to 25 per cent of their total reserves. This high concentration in a single asset class created two main issues.
One, heavy reliance on one asset increases exposure to potential price swings and two, any reduced balance hindered the overall liquidity and balance of the national portfolio. So divesting a portion of gold means the Bank was aligning the reserve composition more closely with international peer benchmarks for better liquidity.
Where did the money go?
The proceeds from the gold sales were not spent. Rather, it was redeployed into high-quality, liquid foreign exchange assets and fixed-income instruments. The Bank also employed a two-pronged management approach to ensure these funds continue to grow while maintaining safety.
The approaches were by reinvesting in instruments consistent with central bank reserve guidelines. In addition, a portion of the funds is being managed by professional external fund managers, a standard practice among central banks to enhance returns while maintaining strict risk controls.
Was it in line with best practices?
Globally, Central bank reserve management is generally guided by three core principles. Safety (capital preservation), liquidity and return. The Bank of Ghana’s actions are therefore consistent with these principles and international norms.
Periodically rebalancing a portfolio especially after significant movements in asset prices is considered prudent portfolio management. This ensures that the reserves remain diversified across different asset classes and avoiding excessive risk in any one area.
The Bank of Ghana has assured to closely monitor global market conditions and risk exposures. Further adjustments may be made in the future to safeguard the country’s external position. In summary, part of Ghana’s gold holdings was converted into FX to ensure the reserves remain intact, liquid and strong. It is only a stance of financial prudence rather than economic pressure.
