The Bank of Ghana has started a strategic adjustment of its foreign reserve portfolio that includes partial reduction of its gold holdings, the central bank announced Sunday, December 8, 2025.
The move forms part of the bank’s strategic asset allocation framework, which guides reserve composition to support long-term monetary and financial stability. The framework, outlined in the central bank’s Monetary Policy FAQs, establishes principles for determining the appropriate asset mix that safeguards external buffers.
Central bank officials explained that moderating gold exposure will help limit the impact of price volatility. The adjustment aims to reduce the need for active hedging while ensuring reserve management stays within approved risk parameters.
The decision follows Governor Johnson Asiama’s announcement in November that the bank plans to diversify reserve assets to reduce dependence on gold holdings. He made the statement during the 127th Monetary Policy Committee press briefing on November 26, 2025, identifying diversification as one of three priority areas.
Ghana’s gold reserves have grown substantially under the Domestic Gold Purchase Programme launched in June 2021. The reserves increased from 8.78 tonnes in May 2023 to 31.37 tonnes by April 2025, representing growth of approximately 264 percent over two years.
By August 2025, gold reserves had climbed to 36.02 tonnes, according to Bank of Ghana data. The rapid accumulation raised questions about concentration risk in the country’s reserve portfolio.
The central bank emphasized the adjustment is not driven by speculation despite monitoring global gold market developments. Officials described the action as a measured risk-management step focused on maintaining resilience and safeguarding reserve strength over time.
Ghana’s gross international reserves stood at 11.41 billion dollars as of November 2025, equivalent to 4.8 months of import cover. The strong reserve position has contributed to improved cedi performance in 2025, supported by operational reforms in the foreign exchange market.
The rebalancing coincides with ongoing concerns about gold sourcing. Parliamentary Minority statements have questioned whether the Bank of Ghana has been pre-financing Gold Board purchases, including gold from illegal mining operators, without proper budgetary allocation.
The 2025 Budget allocated 279 million dollars to Gold Board for gold purchases, but the Ministry of Finance had not disbursed these funds as of late October. Gold Board and its predecessor purchased approximately 81.719 tonnes of gold between January and October 2025, significantly exceeding the 19.6 tonnes average annual purchases under the previous Bank of Ghana programme.
Global central banks have been actively increasing gold holdings in recent years, purchasing a record 483 tonnes in the first half of 2024. Turkey acquired 45 tonnes and India 37 tonnes during that period, viewing gold as a hedge against economic uncertainty and geopolitical risks.
The Bank of Ghana has assured that the reserve rebalancing will enhance external reserve management efficiency and reinforce confidence in the monetary policy framework, particularly during unpredictable movements in global commodity markets.