The Governor of the Bank of Ghana, Johnson Pandit Asiama, has defended the central bank’s decision to rebalance a portion of Ghana’s gold reserves, explaining that the move was a strategic step aimed at diversifying the country’s international reserves and strengthening its external financial buffers.
Addressing the Parliamentary Committee on Economy and Development, Dr. Asiama clarified that Ghana’s gold remains fully part of the nation’s reserves and that the measure only involved adjusting the composition of assets rather than reducing national wealth.
“Ghana’s gold reserves remain part of our national reserves; what changed was the composition of those reserves,” the Governor told Members of Parliament.
Dr. Asiama explained that the Bank significantly strengthened Ghana’s gold position through the Domestic Gold Purchase Programme, which was launched in 2021 to build stronger external buffers.
Prior to the programme, the central bank held about 8.7 tonnes of gold, but sustained purchases increased total holdings to over 40 tonnes by October 2025.
However, developments in the global market dramatically altered the structure of Ghana’s reserve portfolio. Between January and October 2025, global gold prices rose by approximately 62 percent, significantly increasing the value of the Bank’s gold holdings.
As a result of both increased accumulation and rising prices, gold came to represent about 42 percent of Ghana’s Gross International Reserves by October 2025.
While describing gold as a critical reserve asset, the Governor cautioned that such a high concentration in a single asset class creates portfolio concentration risk.
“International reserve management practices emphasize diversification,” he explained, noting that data from the World Gold Council and reserve management frameworks referenced by the International Monetary Fund suggest that countries at Ghana’s level of development typically maintain around one-fifth of their reserves in gold as part of a diversified portfolio.
Dr. Asiama also pointed out that Ghana’s broader economy is already significantly exposed to gold price movements as one of the world’s leading gold producers, making reserve diversification even more important for economic stability.
He further explained that unlike advanced economies whose currencies serve as global reserve assets and whose financial markets are deep and highly liquid, countries like Ghana rely more directly on their international reserves to stabilise the foreign exchange market, finance essential imports and respond to external shocks.
“For that reason, reserves must not only be valuable; they must also be liquid, diversified and readily usable when needed,” he stated.
To address the imbalance created by rising gold prices, the Bank undertook what the Governor described as a measured portfolio rebalancing, converting a portion of its gold holdings into foreign exchange assets in order to restore a more balanced reserve composition.
Dr. Asiama emphasised that the move did not result in any loss of national assets, as the gold was converted into foreign exchange which remains fully part of Ghana’s international reserves.
He also stressed that central banks do not manage reserves with the objective of speculating on short-term price movements.
“Central banks do not manage reserve portfolios based on short-term price forecasts. Reserve management focuses on maintaining an appropriate balance between liquidity, safety and diversification,” he explained.
According to the Governor, portfolio rebalancing is a standard practice in central bank reserve management, undertaken periodically to maintain diversification, liquidity and risk control.
The foreign exchange proceeds from the transaction, he added, continue to be actively invested as part of the Bank’s reserve portfolio, generating returns while preserving Ghana’s external buffers.
“In short, this was a strategic diversification measure designed to strengthen the resilience and usability of Ghana’s international reserves, not a depletion of national assets,” Dr. Asiama stated.
