While central banks across the globe are currently in a frantic race to stockpile more gold, the Bank of Ghana (BoG) has taken a different route, a move that has been described as a more strategic path.
To the casual observer, seeing Ghana sell off a portion of its gold while others are buying might seem like a cause for alarm.
However, according to insights from banking consultant Dr. Richmond Akwasi Atuahene, this is not a sign of economic distress, but a masterful execution of what can be described as “The Great Rebalancing.”
Selling at the Peak
For Dr. Atuahene, the most practical reason for Ghana’s move is to buy low, sell high. Between January and October 2025, global gold prices skyrocketed by approximately 62%, with some values surpassing a staggering $4,000 per ounce.
He notes that Ghana was uniquely positioned to capitalize on this surge because of its aggressive accumulation strategy. The BoG grew the nation’s gold reserves from a modest 8.78 tonnes in May 2023 to a massive 40+ tonnes by October 2025
By selling a portion of this gold at record-high prices, the BoG locked in significant gains for the country, turning physical bars into active and liquid cash.
“To align with peer standards of 20–25% and ensure liquidity, the BoG began ‘rebalancing’, converting a portion of gold into liquid foreign exchange assets. As of December 2025, the BoG maintained a substantial gold buffer of 18.6 tonnes after these strategic liquidations,” he noted.
Avoiding the “One-Basket” Trap: Concentration Risk
For the financial analysts, the situation is like putting all your life savings into a single stock; if that stock price drops, you lose everything. This is what central banks call “concentration risk.”
By late 2025, gold had grown to represent 42% of Ghana’s total reserves. Dr. Atuahene’s analysis highlights that peer central banks typically aim for gold to make up only 20–25% of their portfolio.
He argues that having 42% of wealth tied to one asset made Ghana vulnerable to sudden price swings. He therefore notes that the rebalancing allowed the BoG to bring these levels back to global standards, ensuring a healthier and more resilient mix of assets.
“Strategic rebalancing ensures a better mix between gold and liquid foreign currency assets,” he added.
Cash is King: Liquidity for the Cedi and Debt
Dr. Atuahene notes that gold is a fantastic store of wealth, but you cannot easily use a gold bar to intervene in the currency market or pay an immediate debt.
To keep the Cedi stable and protect it from speculative attacks, the BoG needs liquid foreign exchange (FX), actual cash that can be deployed instantly. The rebalancing provided exactly that.
The proceeds from these gold sales were redeployed into high-quality, liquid foreign exchange assets and fixed-income instruments. He notes that this liquidity was a game-changer for Ghana’s debt:
He cited the debt settlement in 2025, where Ghana used this liquidity to pay off over US$1.4 billion in Eurobond debt. He further mentioned the “surprise” payment of US$709 million on December 30, 2025, a move that stunned investors and signaled a return to fiscal discipline.
Moreover, he adds that the actions helped upgrade Ghana’s credit profile from “restrictive default” to B- with a stable outlook by June 2025.
The Result: A Thicker Buffer and a Stable Future
It is important to note that Ghana hasn’t emptied the vault. Even after this strategic rebalancing, the BoG maintains a substantial gold buffer of 18.6 tonnes as of December 2025.
Meanwhile, Ghana’s Gross International Reserves have increased to US$13.8 billion, providing a comfortable 5.7 months of import cover.
For Dr. Atuahene, while the rest of the world is buying gold to hide from uncertainty, Ghana is using its gold to build a future.
By rebalancing, the BoG has transformed static wealth into a dynamic “Golden Shield” that protects the Cedi, settles national debts, and restores global investor confidence.
