These briefing notes provide additional context to support accurate reporting on the Bank of Ghana’s recent gold liquidation and the rationale for the adjustment in the composition of Ghana’s international reserves.
What did the Bank of Ghana do?
The Bank of Ghana liquidated a portion of its gold holdings on the international market as part of a deliberate reserve portfolio diversification strategy.
The transaction involved converting part of the gold portfolio into foreign exchange (FX) assets.
Importantly, the gold was liquidated into FX and not written down.
In addition, the FX remains fully part of Ghana’s international reserves and is being actively invested.
This was a reallocation within reserves, not a drawdown of reserves.
Why was the decision taken?
Over the past two years, global gold prices rose sharply, resulting in gold making up a significantly larger share of reserve portfolios worldwide.
In Ghana’s case, gold’s share increased over time and made up a larger share of reserves due to rising prices and gold accumulation over time – gold’s share of Gross International Reserves (GIR) rose to over 40%.
By comparison, many peer central banks typically hold around 20–25 per cent of reserves.
This made it necessary to rebalance the reserves to reduce risk.
While gold remains an important reserve asset, such a high concentration in a single asset class increases exposure to price swings and reduces portfolio balance.
The decision to rebalance was therefore taken to reduce concentration risk, improve liquidity, and align Ghana’s reserve composition more closely with peer benchmarks.
Does this mean Ghana lost gold or reserves?
No. There was no loss of national assets.
The value realised from the gold liquidation was preserved and reinvested, and overall reserves remain strong and continue to support external stability.
The change observed in gold holdings reflects a shift in the composition of reserves, not a depletion.
What was done with the proceeds?
The proceeds from the gold liquidation were redeployed into high-quality, liquid foreign exchange assets and fixed-income instruments consistent with central bank reserve guidelines.
A portion of the funds is also managed through external professional fund managers, in line with standard central bank practice, to enhance returns while maintaining strong risk controls.
How does this align with international best practice?
Central bank reserve management is guided by three core principles:
- Safety (capital preservation)
- Liquidity
- Return
Best practice requires reserves to be diversified across asset classes to avoid excessive concentration.
Periodic rebalancing, particularly after large asset price movements, is standard among central banks.
The Bank’s actions are consistent with:
- International best practice of reserve management principles
- Practices observed among peer central banks
- Prudent portfolio management norms
Will the Bank continue to adjust its reserve portfolio?
Yes. The Bank of Ghana continuously monitors:
- Global financial market conditions
- Asset price movements
- Liquidity needs
- Risk exposures
Further adjustments may be made over time as conditions evolve, always guided by best practice in reserve management and the objective of safeguarding Ghana’s external position.
What was Ghana’s gold reserve holdings at the end of December 2025?
At the end of December 2024, Ghana’s gold reserves stood at 30.53 tonnes.
During 2025, the Bank purchased a total of 10.32 tonnes.
In line with its strategic objective of reducing gold’s share of the GIR to 20%, and under the authorisation of Management and the Board, the Bank divested approximately 22.24 tonnes on the international market.
This action brought gold holdings down from a peak of 38 tonnes in October 2025 to 18.61 tonnes at the end of 2025.
Key takeaway for reporting
- This was a strategic diversification, not a crisis response.
- Gold was converted into FX, not lost.
- Reserves remain intact, invested, and strong.
- The action reflects prudence, not pressure.
Source: Bank of Ghana
