Although the sharp drop in Ghana’s gold reserves in the last quarter of 2025 may have looked alarming on paper, the Governor of the Bank of Ghana, Dr. Johnson Asiama says there is no reason for panic.
The governor, in an attempt to clarify the development, explained that what the country has witnessed is not a loss of wealth, but a deliberate and strategic rebalancing of Ghana’s reserve portfolio.
The latest Summary of Economic and Financial Data published by the BoG revealed that Ghana’s gold holdings fell from 37.1 tonnes to 18.6 tonnes, raising eyebrows among analysts and the general public alike. This is because gold has traditionally been seen as a safe store of value, especially at a time when global prices are hitting record highs.
Addressing the media after the first MPC meeting in 2026, Dr. Asiama was emphatic that holding too much gold can also come with risks.
He explained that when the Bank reviewed Ghana’s reserve composition, it found the country was heavily overweight in gold, with more than 40 percent of reserves tied up in the metal. By comparison, many peer countries hold between 20 and 25 percent of their reserves in gold.
This imbalance, he said, informed the decision to diversify. For him, Ghana was putting too many eggs in one basket, and hence, there was a need to invest in other portfolios.
He therefore revealed that the gold was sold and converted into foreign exchange. The foreign exchange earnings have been reinvested and are now earning returns, contributing to overall reserve accumulation. The Governor stressed that reserves are still growing, not shrinking, and that the country’s external buffers remain intact.
“What we did was to look at our peers, our peer countries. We observed that most of them were holding between 20 and 25 percent of their portfolios, you know, as gold. At the time, we were holding a little over 40 percent, and so the decision was made to diversify, and that is what you see,” he clarified.
He added, “But the FX that was earned as a result is there. It is earning dividends, and so it is contributing to reserve accumulation. And so no worries at all.”
He also addressed concerns about timing, especially with gold prices currently above record levels. While the headline price may look attractive, the Governor cautioned against assuming those levels will last forever.
He stressed that some of the forces pushing gold prices up are temporary, driven by short-term global uncertainty. Others are long-term. Policymaking, he said, must be guided by the long-term picture, not short-term excitement.
“There are several factors that drive gold prices. Some of these factors are transitory. Some are structural. Now, what you see at 5,200 may be more of transitory factors. It may not be permanent. And so you have to be conservative in your assessments,” Dr. Asiama emphasized.
The Governor’s reassurance did not end there. He was quick to add that Ghana is already rebuilding its gold position. The Governor confirmed that reaccumulation will resume this year, after which the Bank will reassess what level of gold holdings makes the most sense for the country.
The goal is not to abandon gold, but to hold it at an optimal level that balances safety, liquidity and returns.
For the Governor, this was a calculated adjustment aimed at strengthening Ghana’s reserves, not weakening them. In short, nothing has been lost. Ghana simply changed how it holds its wealth, with an eye firmly on long-term stability rather than short-term headlines.
