Portfolio rebalancing, not loss of national assets – BoG

Governor of the Bank of Ghana, Johnson Pandit Asiama, says converting part of Ghana’s gold reserves into foreign exchange was a diversification move, not a loss of national assets.

Dr. Asiama clarified that the transaction formed part of routine reserve management aimed at maintaining a balanced and resilient reserve portfolio capable of supporting the economy during external shocks.

Addressing members of Parliament’s Committee on Economy and Development, he explained that the gold involved in the transaction remains part of Ghana’s international reserves, only in a different form.

“Let me begin by making one point very clear: Ghana’s gold reserves remain part of our national reserves; what changed was the composition of those reserves,” he stated.

According to the governor, the decision followed a significant buildup of gold within the country’s reserves in recent years, largely through the central bank’s Domestic Gold Purchase Programme.

Before the programme began in 2021, the Bank held about 8.7 tonnes of gold. Continuous accumulation, however, pushed holdings to more than 40 tonnes by October 2025.

At the same time, global market developments significantly increased the value of the central bank’s gold portfolio.

“Between January and October 2025 alone, global gold prices rose by approximately 62 percent, significantly increasing the value of the Bank’s gold portfolio,” Dr. Asiama noted.

He said the sharp rise in both holdings and global prices pushed gold to account for about 42 percent of Ghana’s Gross International Reserves by October 2025.

The governor stressed that such concentration in a single asset class posed portfolio risks for a country like Ghana that depends heavily on its reserves to stabilise the currency and finance essential imports.

“International reserve management practices emphasise diversification,” he said, adding that countries at Ghana’s stage of development typically maintain roughly one-fifth of reserves in gold.

“In light of these considerations, the Bank undertook a measured portfolio rebalancing, converting a portion of its gold holdings into foreign exchange assets,” he explained.

Dr. Asiama rejected suggestions that the move amounted to a disposal of national wealth.

“First, this action did not represent a loss of Ghana’s national assets. The gold was converted into foreign exchange assets, which remain fully part of Ghana’s international reserves,” he said.

He further stressed that central banks do not manage reserves for short-term speculation.

“Central banks do not manage reserves with the objective of speculating on short-term price movements,” the governor said. “Reserve management focuses on maintaining liquidity, safety and diversification.”

Dr Asiama added that the foreign exchange obtained from the transaction remains invested within the central bank’s reserve portfolio to support Ghana’s external stability.