The Bank of Ghana (BoG) has clarified that the sharp decline in the country’s gold reserves from a peak of 38 tonnes in October 2025 to 18.6 tonnes by December 2025 represents a deliberate portfolio rebalancing strategy aimed at reducing concentration risk, not a loss of national assets.
Governor Johnson Asiama explained on Monday, February 9, 2026, that at a point, gold accounted for more than 40 percent of Ghana’s total international reserves, significantly higher than the 20 to 25 percent benchmark observed among many peer economies. To reduce concentration risk and strengthen overall reserve resilience, the central bank took a decision to rebalance the portfolio by converting part of the gold holdings into foreign exchange (FX).
The proceeds from the conversion remain fully within Ghana’s international reserves and are being actively invested to support reserve accumulation and generate returns, Asiama stated.
According to BoG data published in the Summary of Economic and Financial Data for December 2025, Ghana’s gold holdings stood at 30.53 tonnes at the end of December 2024. During 2025, the bank purchased a total of 10.32 tonnes through its domestic buying program operated by the Ghana Gold Board (GoldBod).
However, under authorization from management and the board, approximately 22.24 tonnes were divested on the international market, bringing holdings down from a peak of 38 tonnes in October to 18.61 tonnes by year end.
The decision followed extensive assessments of concentration risk arising from sharp increases in global gold prices over the past two years. While gold remains an important reserve asset, central bank officials argued that excessive concentration in a single asset class increases exposure to price swings and reduces portfolio balance.
In December 2025, the Bank of Ghana, in a Monetary Policy Frequently Asked Questions document, announced that it was undertaking a strategic rebalancing of its total foreign reserves, which includes a partial divestment of its gold holdings as part of the bank’s broader strategic asset allocation framework aimed at aligning the composition of reserves with long term objectives.
By adjusting its exposure, the bank sought to reduce vulnerability to gold price volatility, thereby minimizing the need for active hedging within its defined risk parameters. While the bank maintained an informed view of global gold price trends, it stressed that its approach is not speculative so that decisions on reserve composition are guided by long term stability and financial resilience rather than short term market fluctuations.
The rebalancing was designed to improve Ghana’s external reserve management efficiency while maintaining confidence in the country’s monetary framework amid global commodity price uncertainties.
Financial analyst Richmond Eduku defended the decision, describing it as strategic for stabilizing the economy and easing pressure on ordinary Ghanaians. He argued that holding over 40 percent of reserves in gold at a time when the country grappled with soaring inflation of 23.8 percent amounted to leaving a critical resource idle while citizens suffered.
Between December 2024 and December 2025, total international reserves increased from $9.3 billion to $13.8 billion. Inflation declined from 23.8 percent to 5.4 percent, while the Monetary Policy Rate (MPR) fell from 26 percent to 18 percent. These measures helped ease economic pressure, reduce costs for fuel and goods, and create a more stable business environment.
In December 2024, Ghana faced substantial arrears across critical sectors. Government arrears were estimated at GH₵67.5 billion, excluding GH₵68 billion owed by the Electricity Company of Ghana (ECG), GH₵32 billion owed by the Ghana Cocoa Board (COCOBOD), and $1.73 billion owed to international creditors.
The government prioritized external debt servicing, making approximately $1.17 billion in Eurobond payments during 2025. These payments reduced Ghana’s overall debt burden, lowered the debt to Gross Domestic Product (GDP) ratio, and strengthened the country’s credibility with international investors.
In the energy sector, the government cleared $1.47 billion in legacy debts, including $597 million to restore World Bank guarantees, $480 million in outstanding gas invoices, and $393 million owed to Independent Power Producers (IPPs). These interventions helped stabilize energy supply, critical for both households and businesses.
Eduku noted Ghana’s approach aligns with global best practices. While Ghana previously held over 40 percent of reserves in gold, peer countries such as Chile and Brazil maintain only 20 to 25 percent, diversifying the remainder into foreign currency assets.
However, the move has drawn criticism from economists and opposition voices. Dr Frank Bannor, a Development Economist and Senior Research Fellow at the Institute of Economic Research and Public Policy (IERPP), called on the governor to publicly explain the sharp decline in Ghana’s gold holdings.
Bannor described the development as deeply concerning, particularly given the speed and scale of the drawdown. He noted that in the course of 2025, Ghana’s gold reserves initially followed an upward trajectory, rising to 31.0 tonnes in March 2025, increasing further to 33.0 tonnes in June 2025, and peaking at 37.1 tonnes in September 2025.
However, the trend reversed sharply in the final quarter of the year, with holdings plunging to 18.6 tonnes by December 2025, wiping out all the gains made earlier in the year and pushing reserves well below the level inherited from the previous administration, Bannor stated.
He argued that gold reserves, unlike other reserve assets, carry strategic importance for a gold producing country like Ghana and should not be drawn down without clear public justification. Gold is not just another reserve asset. It is a strategic store of value, especially in times of global uncertainty, he stated.
Ghana’s drawdown contrasts sharply with broader global trends. Data from the World Gold Council show that central banks worldwide remain aggressively bullish on gold, continuing a buying spree that began in earnest in 2022. As of the end of the third quarter of 2025, total central bank gold accumulation for the year had reached 634 tonnes.
This follows a historic surge in demand over the previous three years. Between 2010 and 2021, central banks purchased an average of 473 tonnes annually. That trend was shattered in 2022, when net purchases hit 1,136 tonnes, followed by 1,051 tonnes in 2023 and 1,045 tonnes in 2024.
Central banks began 2025 with continued enthusiasm for bullion, recording 18 tonnes of net purchases in January alone. Uzbekistan topped the list with 8 tonnes, bringing total holdings to 391 tonnes, equivalent to 82 percent of its total reserves. China’s central bank added 5 tonnes, lifting holdings to 2,285 tonnes, marking its third consecutive month of net purchases.
Within Africa, Ghana’s 18.6 tonnes places it behind several peers. Libya holds 146.65 tonnes, Egypt 128.82 tonnes, and South Africa 125.47 tonnes. Nigeria, Africa’s largest economy, holds 21.44 tonnes, only slightly above Ghana, while Mauritius holds 12.42 tonnes.
