Gold reserves converted into FX assets, not lost — Bank of Ghana clarifies

The Bank of Ghana (BoG) has dismissed claims that the country incurred losses after selling part of its gold reserves, stressing that the move involved converting gold holdings into foreign exchange assets rather than reducing national wealth.

In a response to growing public concern, the Central Bank explained that the transaction preserved the value of the reserves, with the proceeds remaining fully within Ghana’s international reserve pool and actively invested.

“The gold was exchanged for FX assets, not written off,” the Bank stated, noting that the funds continue to support the country’s external stability.

The clarification was contained in a document obtained by JOYBUSINESS, which emphasised that no national assets were lost in the process.

According to the BoG, the proceeds were reinvested into high-quality liquid foreign currency instruments and fixed-income securities, in line with international reserve management standards. Some of the funds are also being overseen by external professional managers to maximise returns while maintaining strict risk controls.

The Central Bank explained that the sale formed part of a broader strategy to diversify its reserve portfolio and reduce excessive concentration in gold.

As of December 2024, Ghana’s gold reserves stood at 30.53 tonnes, and an additional 10.32 tonnes were acquired during 2025, bringing holdings to about 38 tonnes by October of that year. However, with gold accounting for more than 40 per cent of the country’s Gross International Reserves, the Bank divested approximately 22.24 tonnes, reducing holdings to 18.61 tonnes by the end of 2025.

The BoG noted that the surge in global gold prices over the past two years had significantly increased gold’s share of reserve portfolios worldwide. In contrast, most central banks typically keep gold between 20 and 25 per cent of total reserves, making Ghana’s position unusually high.

To manage risk and improve liquidity, the Bank said rebalancing was necessary to align the country’s reserve composition with international best practices.

“High concentration in a single asset class exposes reserves to price volatility and weakens portfolio stability,” the Bank explained.

The Central Bank added that periodic portfolio adjustments are standard in reserve management, particularly following major price movements.

Looking ahead, the BoG indicated that further rebalancing may occur depending on market conditions, liquidity needs and risk considerations, always guided by the goal of protecting Ghana’s external financial position.

It stressed that the decision was strategic and precautionary, not driven by financial distress.

“Ghana’s reserves remain intact, diversified and strong,” the Bank concluded, describing the move as a prudent investment shift rather than a loss of assets.