The Bank of Ghana (BoG) has undertaken a portfolio rebalancing of its gold reserves as part of efforts to strengthen the country’s reserve management strategy and reduce exposure to concentration risks.
According to the central bank, the move involved converting a portion of its gold holdings into foreign exchange assets to ensure a more balanced composition of Ghana’s gross international reserves.
Through the Domestic Gold Purchase Programme, Ghana’s gold reserves have grown substantially in recent years.
Holdings increased from about 8.7 tonnes before 2021 to more than 40 tonnes by October 2025, reflecting the programme’s role in boosting the country’s reserve assets.
However, the rapid rise in global gold prices significantly increased the value of the reserves held in the precious metal.
Between January and October 2025, gold prices rose by about 62 percent, pushing the share of gold in Ghana’s gross international reserves to around 42 percent.
The Bank of Ghana explained that such a high concentration in a single asset class created potential portfolio risks, making it necessary to rebalance the reserve composition.
As a result, the central bank converted part of its gold holdings into foreign exchange assets to restore a more diversified reserve portfolio and enhance overall risk management.
Governor Dr Johnson Asiama stressed that the rebalancing should not be interpreted as a loss of national assets.
He explained that the converted funds remain within Ghana’s international reserves and continue to be invested as part of the country’s reserve portfolio.
The central bank maintains that the move is consistent with standard international reserve management practices aimed at preserving value, managing risk, and ensuring adequate liquidity to support the country’s external obligations.
Macroeconomic improvements
The central bank says the policy measures have produced clear improvements in the macroeconomic environment.
Inflation has dropped sharply from 23.8 percent in December 2024 to 5.4 percent by December 2025, and further to 3.3 percent in February 2026 — one of the lowest readings in recent years.
The exchange rate has also stabilised, with the Ghanaian cedi recording strong appreciation in 2025 as macroeconomic conditions improved.
Interest rates have begun to decline across the financial system as inflation expectations eased. During 2025, the Monetary Policy Rate was reduced by 900 basis points to 18 percent.
External reserves also strengthened significantly. Gross international reserves reached US$13.8 billion by the end of 2025, providing about 5.7 months of import cover.
Banking sector recovery
Speaking on the the banking sector, Dr Asiama said, the sector has also shown signs of recovery after the challenges created by the debt exchange programme.
Capital adequacy improved to 17.5 percent, well above the regulatory minimum of 13 percent. The non-performing loan ratio also declined from 21.8 percent to 18.9 percent.
Total banking sector assets increased from GH₵368 billion to GH₵447 billion, while deposits rose nearly 18 percent to GH₵325 billion.
Credit activity is also picking up. Gross loans increased from GH₵95 billion to GH₵111 billion, while new loan disbursements rose significantly toward the end of 2025.
According to him, these indicators showed that the banking system remains liquid, solvent and increasingly able to support economic growth.
