The latest expert to wade into the Bank of Ghana (BoG) gold reserves offloading strategy controversy is financial analyst and banking consultant Dr. Richmond Atuahene, who has thrown his weight behind the decision of the Central Bank.
Dr. Richmond Atuahene does not only describes the move as both timely and economical, he also believes it is sensible in today’s uncertain global environment.
In an exclusive interaction with The High Street journal, the banking consultant argued that the decision reflects smart reserve management rather than weakness, especially for a developing economy that must make every cedi count.
Gold Is a Reserve Asset, Not One to Overhold
Dr. Atuahene agrees that gold has an important place in a country’s reserves, but he cautions against keeping too much of it.
In his view, holding excessive gold exposes the country to unnecessary risk, particularly because gold prices are heavily influenced by external forces Ghana cannot control.
While gold is often seen as safe, he noted that its value can swing sharply due to global developments, making it less reliable as a long-term anchor if overused.
Geopolitics Can Quickly Erode Gold Value
One of Dr. Atuahene’s key concerns is the impact of geopolitics on gold prices. Wars, political tensions, and global uncertainty can push gold prices up, but they can just as easily cause sharp corrections when conditions change.
For Ghana to hold large volumes of gold means that a sudden drop in prices could significantly reduce the value of its reserves. Offloading part of Ghana’s gold holdings now, when prices are high, helps reduce exposure to such shocks.
High Prices Make This the Right Time to Sell
Dr. Atuahene believes the timing of the Bank of Ghana’s decision is crucial. With gold prices currently elevated, selling part of the reserves allows Ghana to lock in strong gains rather than wait and risk a downturn.
He likens the development to selling an asset when its market value is high instead of holding on and hoping prices rise further. The move, he said, maximises value for the country today.
Diversification Strengthens Foreign Exchange Reserves
Another major justification for the offloading is diversification. Dr. Atuahene explained that foreign exchange reserves are strongest when spread across different currencies and assets, not concentrated in one commodity.
By converting some gold into other currencies, Ghana improves liquidity and flexibility, making it easier to respond to external shocks, support the cedi, and meet international obligations.
Global Best Practice Favors Diversification
Dr. Atuahene pointed out that most countries do not rely heavily on gold alone. Instead, they diversify their reserves across major currencies and financial instruments to reduce risk.
In that context, Ghana’s decision aligns with global best practice and reflects a more balanced approach to reserve management.
Supporting the Cedi and Paying Down Debt
Beyond reserve strategy, Dr. Atuahene noted that proceeds from gold sales can directly support the economy.
The foreign exchange earned can help stabilise the cedi and provide resources to service external loans, easing pressure on public finances.
He therefore agrees that gold should hedge risk, not dominate strategy. In a volatile world, he argues, the Bank of Ghana’s decision to offload part of its gold holdings is a prudent step toward stronger reserves, greater stability, and better economic management.
He further adds that the commitment to restock the reserves after the offloading is also a good move.
