The Bank of Ghana’s (BoG) aggressive gold accumulation agenda is not in a vacuum or for nothing, but a signal of a change in strategy to what the experts call “non-debt buffer management.” This is the observation of Professor of Finance at Andrews University in the United States, Prof. William Kwasi Peprah.
Ghana’s gold reserves have significantly increased by about 21% since January 2025. Latest data from the BoG reveals that its gold reserves have soared to hit 37 tonnes.
For Prof. William Kwasi Peprah, this is no ordinary move but a shift in strategy. The non-debt buffer management, in simple terms, means the Bank of Ghana (BoG) is building a safety cushion made of gold instead of relying solely on borrowed money or foreign loans whenever external shocks hit the economy.
In essence, the Bank is positioning itself to have something valuable to fall back on in tough times. Instead of always borrowing when the economy faces pressure, Ghana can turn to its gold reserves to calm the storm.
According to Prof. Peprah, traditionally, many central banks across the world keep reserves in foreign currencies like the US dollar. However, the downside is that it can quickly lose value when global markets fluctuate.
This approach of the BoG, of adding more gold to its reserves, aims to reduce Ghana’s foreign exchange vulnerabilities, particularly the cedi’s frequent depreciation.
Prof. Peprah further noted that this is part of a diversified reserve management strategy, where the central bank doesn’t keep all its wealth in just one form, such as cash. Instead, it spreads its risk across multiple assets, including commodities like gold, which hold intrinsic value over time.
He says this strategy is not new, as countries like China, Russia, and Turkey have used similar gold-backed reserve systems to withstand financial shocks. Ghana has the gold, and it’s smart that we’re now leveraging it to build resilience.
“What the Bank of Ghana is trying to do is trying to position itself to build a non-debt buffer management strategy so that any time there are these external shocks that normally affect us, Ghana will be able to find some commodities to meet that,” he said in an interview monitored by The High Street Journal.
With the price of gold soaring globally and Ghana’s reserves reaching 37 tonnes, the BoG’s gold-backed approach could help the country stabilize its currency, reduce debt dependence, and boost investor confidence.
But experts such as Prof. William Peprah warn that the strategy will only pay off if managed transparently and integrated into the central government’s fiscal policy.
