Accra: The Bank of Ghana (BoG) has made a strategic decision to reduce its gold reserves by 51 percent, reallocating the proceeds into foreign-currency assets. This move is aimed at enhancing yield and liquidity, despite the fact that gold prices are at an all-time high, according to Governor Dr. Johnson Asiama.
According to Ghana Web, the central bank has clarified that this action is a strategic rebalancing rather than a withdrawal from gold investments. The central bank's reserve accumulation has increased, even after reducing its gold holdings to approximately 18.6 tonnes from the previous 38.04 percent recorded at the end of October 2025.
This decision emerges amidst a global surge in gold prices, driven by geopolitical risks, central bank purchases, and financial market uncertainties. As of January 28, 2026, the gold price reached a record high of US$5,289.38 per ounce.
Governor Asiama explained that the bank's previous gold holdings exceeded 40 percent of its reserves, which prompted a review of concentration risks and returns. The diversification strategy involved selling gold for foreign exchange and investing the proceeds in income-generating reserve assets. This approach has led to an increase in gross international reserves to US$13.8 billion by the end of December 2025, equating to 5.7 months of import cover, up from US$9.1 billion, or 4.1 months, a year earlier.
Dr. Asiama cautioned against overinterpreting the current gold price rally, noting that several factors influencing gold prices may be temporary. Future decisions on gold holdings will be based on structural considerations and an assessment of optimal reserve levels for Ghana.
Gold's role in improving Ghana's external position was significant, with a provisional current account surplus of US$9.1 billion in 2025, largely supported by strong gold export earnings. The export receipts from gold in 2025 were estimated at US$20.97 billion, helping to produce a balance of payments surplus of US$3.98 billion and stabilizing the cedi. The currency appreciated by 40.7 percent against the US dollar in 2025.
The central bank's monetary policy has also seen changes, with the Monetary Policy Committee cutting its benchmark rate by 250 basis points to 15.5 percent in January 2026, as inflation fell to 5.4 percent in December 2025. Despite rate cuts, the central bank maintained control over liquidity through sterilization measures.
Governor Asiama addressed concerns about the costs associated with gold-related operations, emphasizing that they are necessary for maintaining price and financial stability. He also mentioned that the government is committed to recapitalizing the Bank of Ghana to strengthen its balance sheet.
The BoG's gold rebalancing comes as the Ghana Gold Board, known as GoldBod, prepares to take full control of the domestic gold trade in 2026. The agency reported over US$10 billion in revenue from artisanal and small-scale mining in 2025. However, the IMF flagged quasi-fiscal losses associated with trading margins and operating fees under the gold programmes. The gold-for-oil programme remains suspended pending an external audit.
The Bank of Ghana will continue to monitor gold market developments and adjust its reserve management and monetary policy accordingly in 2026.