Economist Professor Godfred Bokpin has urged the Bank of Ghana (BoG) to exercise extreme caution in its reserve management. The warning follows a sharp 50% decline in the nation's
gold holdings over the final quarter of 2025.
Official data reveals that gold reserves plummeted from a peak of 37 tonnes in September to roughly 19 tonnes by December 2025. This rapid drawdown has sparked concerns among financial analysts and lawmakers alike.
Dr. Johnson Pandit Asiama, the Governor of the Bank of Ghana, defended the move as a strategic "portfolio rebalancing." He stated that the bank liquidated the gold to accumulate higher-yielding foreign exchange (FX) assets.
The Prudence Argument
Hedging Risks: Bokpin suggests the BoG should consider hedging gold prices rather than aggressive selling to protect against market volatility.
Artificial Stability: He warned that propping up the Cedi through interventions alone, rather than structural economic shifts, is unsustainable.
Buffer Security: Prudence is required to ensure Ghana maintains enough hard asset buffers to withstand global financial shocks.
A Shifting Gold Strategy
The decline marks a historic reversal from earlier in 2025, when reserves hit record highs under the Domestic Gold Purchase Programme. Critics, including MP Patrick Boamah, are now demanding full transparency regarding the disposal of nearly 18 tonnes of gold in a single quarter.
Despite the drop in bullion, Dr. Asiama maintains that Ghana’s Gross International Reserves (GIR) actually grew to $13.8 billion by year-end. He argues the shift into liquid FX assets has earned "dividends" and strengthened the overall reserve position.
As the Ghana Gold Board (GoldBod) prepares to take full control of domestic gold trade in 2026, the BoG faces increasing pressure to justify its asset allocation. The goal is to ensure the Cedi's 2025 performance—the best in Africa—is not compromised.
The Bottom Line
Professor Godfred Bokpin is calling for "measured" reserve management, warning that aggressively selling gold to stabilize the Cedi is a temporary fix that risks depleting Ghana's long-term strategic buffers.
