Bank of Ghana Cuts Gold Holdings by Half to Boost Reserves and Liquidity

The Bank of Ghana has reduced its gold holdings by approximately 51 percent, shifting its focus toward foreign-currency assets to improve liquidity and generate higher investment returns.

Governor Dr. Johnson P. Asiama said the move came after gold made up more than 40 percent of the country’s total reserves, a concentration the central bank deemed too high.

“At the time, we were holding a little over 40 percent, so the decision was made to diversify, and that is what you see today,” Dr. Asiama explained during the 128th Monetary Policy Committee press briefing in Accra.

As part of the strategy, the Bank sold a portion of its gold holdings and reinvested the proceeds into income-generating foreign assets. Dr. Asiama noted that the approach has strengthened, rather than weakened, Ghana’s reserve accumulation.

“The effects we aimed for are already visible. The assets are earning dividends and contributing to reserve growth,” he said.

The reduction in gold exposure comes amid a global rally, with spot gold prices rising above US$5,200 an ounce in late January. However, Dr. Asiama cautioned that the surge may be temporary.

“It is true gold prices have reached record levels, but what you see now may be transitory and may not be permanent,” he said.

Despite the lower share of bullion, Ghana’s gross international reserves grew to US$13.8 billion at the end of December 2025, covering 5.7 months of imports, up from US$9.1 billion a year earlier.

Dr. Asiama emphasized that the adjustment reflects portfolio management rather than a retreat from gold. Future decisions will continue to focus on what is structurally optimal for Ghana’s reserves.