Although the country is divided over the Bank of Ghana’s decision to offload part of its gold reserves, economist Dr. Theo Acheampong says the decision is neither strange nor out of the ordinary.
The economist maintains that the move is a calm and deliberate strategy rather than a risky gamble, as speculated by critics.
In a detailed explanation, Dr. Acheampong argues that even after offloading nearly 50% of the gold reserves, Ghana’s current reserve position remains fully consistent with how most central banks around the world manage their reserves.
The Liquidation: From Locked Gold to Usable Dollars
At the heart of the Bank of Ghana’s move, the economist says, is liquidity. Dr. Acheampong, the argues that the central bank took advantage of favourable gold prices to convert part of its gold stock into foreign exchange.
This did not reduce Ghana’s reserves, which are varied across different portfolios or assets. Instead, total reserves actually rose, but their composition changed. Ghana now holds more liquid foreign currency and less physical gold.
This shift improves the country’s ability to pay for imports, respond quickly to shocks, and meet immediate foreign currency needs. This means that the gold liquidation does not necessarily mean Ghana lost value. Instead, it changed form.
“The drop in gold tonnes alongside the large increases in gross and net reserves is 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 𝘄𝗶𝘁𝗵 𝗺𝗼𝗻𝗲𝘁𝗶𝘀𝗮𝘁𝗶𝗼𝗻/𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗼𝗳 𝗴𝗼𝗹𝗱 𝗶𝗻𝘁𝗼 𝗺𝗼𝗿𝗲 𝗹𝗶𝗾𝘂𝗶𝗱 𝗙𝗫 𝗿𝗲𝘀𝗲𝗿𝘃𝗲 𝗮𝘀𝘀𝗲𝘁𝘀 (improving immediate liquidity/import cover), rather than building reserves by simply holding more physical gold,” he noted.
Why Liquidity Matters More Than Hoarding Gold
There is no argument about the value of gold, but it is not always useful in a crisis. You cannot easily deploy gold to settle imports, stabilize the currency, or meet urgent external payments.
Dr. Acheampong explains that by converting gold into foreign exchange, the central bank strengthened Ghana’s short-term financial flexibility. This approach prioritises what can be used immediately, rather than what merely sits in storage.
“The reserve build-up in 2025 was tilted to having more liquid dollars and less physical gold,” he explained.
Ghana’s Gold Share Is Not Unusual
One of the biggest fears among observers is that Ghana may now be “underexposed” to gold. Dr. Acheampong dismisses this concern with global data.
Internationally, gold typically makes up about a fifth of total reserves held by central banks. In Sub-Saharan Africa, the average is even lower. After the conversion, Ghana’s gold share now sits comfortably within this global range.
This means that even after a whopping 50% liquidation, Ghana is still not an outlier. It is still within the global norm among Central Banks.
The economist explained that, “Gold as a share of our net international reserves fell from about 41% (Dec-2024) to 23% (Dec-2025), and from about 29% to 19% as a share of gross international reserves. It is important to note that the 𝘀𝗵𝗮𝗿𝗲 𝗼𝗳 𝗴𝗼𝗹𝗱 𝗶𝗻 𝘁𝗼𝘁𝗮𝗹 𝗳𝗼𝗿𝗲𝗶𝗴𝗻 𝗿𝗲𝘀𝗲𝗿𝘃𝗲 𝗵𝗼𝗹𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝗺𝗼𝘀𝘁 𝗰𝗲𝗻𝘁𝗿𝗮𝗹 𝗯𝗮𝗻𝗸𝘀 𝗶𝘀 𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝗹𝘆 𝟭𝟴–𝟮𝟬% 𝗼𝗳 𝗴𝗹𝗼𝗯𝗮𝗹 𝗿𝗲𝘀𝗲𝗿𝘃𝗲𝘀 (valuation at market prices; 𝘁𝗵𝗲 𝗦𝘂𝗯-𝗦𝗮𝗵𝗮𝗿𝗮𝗻 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗮𝘃𝗲𝗿𝗮𝗴𝗲 𝘄𝗮𝘀 𝟭𝟯% 𝗶𝗻 𝟮𝟬𝟮𝟰.”
Advanced Economies Do It Too
While a few countries like the United States hold unusually large gold stocks, Dr. Acheampong notes that most advanced and emerging economies keep gold shares moderate. The reason is that modern reserve management is about liquidity, flexibility, and speed.
Countries need assets that can be deployed instantly, not just stored as long-term insurance.
He said, “A few of the advanced economies like the United States have more gold as a share of their reserves, but for most others it is typically in the 20%-30% range due to the need for liquidity.”
The Bottomline
Dr. Acheampong stresses that what happened was not reckless selling, but strategic monetisation. Ghana’s reserve build-up in 2025 was driven by holding more liquid dollars rather than piling up physical gold.
For households, businesses, and investors watching, he believes that the move is reassuring. Ghana’s reserves are stronger, more usable, and still aligned with international best practice.
