Ghana boosted its gold reserves by 2 tonnes in August as part of a broader global trend seeing central banks accelerate purchases despite record high prices, positioning the precious metal as strategic hedge against currency risks and geopolitical uncertainty affecting developing economies.
The Bank of Ghana’s August addition lifted year to date purchases to 5 tonnes, bringing total gold reserves to 36 tonnes, according to World Gold Council data. The accumulation continued in September, with reserves climbing to 37.06 tonnes by month end, representing 21.3 percent increase from 30.53 tonnes held in January before the Ghana Gold Board commenced operations.
Central banks worldwide added 19 tonnes to global reserves in August based on reported data, broadly in line with monthly net purchases between March and June. Through August, central banks bought 444 metric tonnes in 2025, maintaining gold’s position as key reserve asset amid elevated economic uncertainty and geopolitical tensions.
Ghana joined seven other central banks that boosted reserves in August. Kazakhstan led with 8 tonnes, extending its year to date increase to 32 tonnes. Turkey, Bulgaria, China, Uzbekistan, Indonesia, and the Czech Republic each added 2 tonnes alongside Ghana. The Czech National Bank’s purchase marked its 30th consecutive month of steady accumulation as it targets 100 tonnes by 2028.
The National Bank of Poland remains the top purchaser in 2025 despite pausing since May, having added 67 tonnes year to date. Polish gold holdings totaled 515 tonnes by August end, accounting for 22 percent of total reserves, after the bank raised its target gold share from 20 percent to 30 percent of international reserves.
Central bank gold purchases have dramatically accelerated over recent years. From 2022 through 2024, central banks purchased 3,220.2 tonnes, more than doubling the 1,575.7 tonnes acquired from 2014 through 2016. The surge reflects strategic reassessment by reserve managers responding to economic instability, inflation pressures, and geopolitical fracturing that elevates risks associated with holding reserves primarily in major currencies.
The World Gold Council’s 2025 Central Bank Gold Reserves Survey showed record levels of interest, with 73 central banks participating, the highest since the survey commenced eight years ago. Respondents overwhelmingly, at 95 percent, expect global central bank gold reserves to increase over the next 12 months. A record 43 percent indicated their own reserves would rise, up from 29 percent in 2024, with none anticipating declines.
Gold’s performance during times of crisis, portfolio diversification benefits, and inflation hedging capabilities drove plans to accumulate more gold. Survey respondents cited the metal’s unique characteristics and role as strategic asset, including its ability to act as store of value and effective diversifier, as key reasons for allocations.
The accelerated buying occurred despite gold prices surging nearly 50 percent year to date, breaking through USD 4,000 per troy ounce in October for the first time. The price rally, supported by central bank demand alongside geopolitical tensions and uncertainty from trade and tariff policies, has reached multiple all time highs throughout 2025.
Ghana’s reserve accumulation coincides with the Ghana Gold Board’s establishment in early 2025 under Act 1140 to centralize the country’s gold trade, particularly from the artisanal and small scale mining sector. GoldBod’s mandate encompasses buying, assaying, grading, exporting, licensing, and enforcing traceability across Ghana’s gold supply chain.
The agency generated over USD 8 billion in foreign exchange between January and October 2025, exporting 81,719.23 kilograms of gold. This marks sharp increase from USD 4.61 billion recorded in 2024 and nearly quadrupled the USD 2.19 billion achieved in 2023, though critics question whether dramatic growth stems partly from previously illicit gold entering formal channels.
For Ghana specifically, increasing gold reserves provides multiple strategic benefits. As Africa’s largest gold producer and sixth largest globally, the country can leverage domestic production to build reserves without foreign exchange expenditure. Higher reserves strengthen the central bank’s capacity to stabilize the cedi, which appreciated 30 percent since President John Mahama took office, partly supported by improved gold reserve positions.
Gold reserves also provide insurance against external shocks affecting developing economies more severely than advanced nations. When global financial crises emerge, commodity prices collapse, or trade relationships deteriorate, central banks with substantial gold reserves possess liquid assets that maintain value and can be sold or pledged as collateral for emergency financing.
The shift toward gold reflects broader dedollarization trends, with 73 percent of Central Bank Gold Reserves Survey respondents expecting reduced share of US dollar reserves over the next five years. While the dollar remains dominant in international reserves, reserve managers increasingly recognize concentration risks from holding assets primarily denominated in single currency subject to policies set by foreign governments prioritizing domestic considerations.
Major emerging market central banks including China, India, Turkey, Kazakhstan, and Azerbaijan have led the buying wave. China’s People’s Bank continued modest additions in recent quarters after more aggressive purchases earlier. Turkey’s official gold reserves, including both central bank and Treasury holdings, reached 635 tonnes after adding 17 tonnes year to date through mid 2025.
Azerbaijan’s State Oil Fund increased holdings to 181 tonnes by mid year, with gold now accounting for almost 29 percent of its investment portfolio. Kazakhstan’s National Bank accelerated buying in second quarter, adding 16 tonnes compared to 6 tonnes in first quarter, lifting total reserves to 306 tonnes.
Advanced economy central banks have generally maintained stable gold holdings rather than actively accumulating, though there are exceptions. The Czech National Bank’s sustained buying program demonstrates that gold accumulation isn’t exclusive to emerging markets concerned about currency stability and geopolitical risks.
The World Gold Council noted that while recent gold price rallies likely remain constraint on buying levels by some central banks, the recent moderation doesn’t signal overall loss of interest. Recent developments show central banks remain keen to continue increasing exposure, with strategic considerations outweighing tactical concerns about purchasing at elevated prices.
Unreported buying remained elevated, estimated around 90 tonnes in second quarter, representing 54 percent of total quarterly demand. The gap between estimated total purchases and reported official data suggests some central banks prefer not disclosing gold acquisition activities, possibly to avoid signaling lack of confidence in reserve currency arrangements or triggering market reactions.
Looking ahead, the World Gold Council maintains that central banks will continue adding gold to reserves. Major emerging market countries’ foreign exchange reserves growth is forecast to pick up in fourth quarter. Demand has broadened, with previously dormant banks becoming active. The 2025 survey showed strongest intention to continue buying since the survey initiated in 2019.
For individual investors, central bank behavior provides signal worth heeding. When institutions managing hundreds of billions in reserves systematically shift toward gold despite prices at all time highs, it suggests strategic conviction that gold’s role as wealth preserver and crisis hedge remains relevant despite decades since the gold standard ended.
Yet challenges persist for Ghana’s gold sector. Environmental activists question whether GoldBod adequately prevents illegally mined gold from entering formal channels, given galamsey’s widespread impact affecting over 60 percent of water bodies. The agency’s dual mandate as both regulator and commercial trader creates structural conflicts, according to critics including Bright Simons of IMANI Centre for Policy and Education.
Dr. Steve Manteaw, Co Chair of Ghana Extractive Industries Transparency Initiative, defends GoldBod’s approach, noting that infiltration of illegal gold predates the entity and that planned traceability systems represent forward looking reform. “Credit should rather be given to the GoldBod for its commitment to introduce a gold traceability system to encourage responsible mineral sourcing,” he stated.
Whether Ghana successfully balances revenue generation through GoldBod with environmental protection and supply chain integrity will determine if the model becomes template for other producing nations or cautionary tale about unintended consequences of aggressive gold sector formalization. The dramatic reserve growth provides fiscal benefits through foreign exchange generation and currency stability, but long term sustainability requires ensuring gold entering formal channels originates from responsible mining operations.
Ghana’s gold reserve trajectory over coming years will test whether the country can leverage domestic production to build substantial holdings rivaling larger economies while addressing governance challenges that have historically plagued the sector. Success would position Ghana as model for resource rich developing nations seeking to convert mineral endowments into durable reserves supporting monetary stability and economic resilience.
