In a significant and somewhat surprising move, the Bank of Ghana (BoG) has dramatically cut its gold reserves, reducing its holdings by almost half in late 2025. This isn’t just a minor adjustment; it represents a major strategic shift in how the nation manages its crucial financial assets.
Official figures reveal that the BoG sold a substantial 19.44 metric tonnes of gold towards the end of 2025. This significant transaction saw the country’s total gold reserves decrease sharply from a peak of 38.04 tonnes in October down to just 18.6 tonnes by December of the same year.
Such a drastic reduction in gold holdings signals a clear departure from previous reserve management strategies and has naturally drawn attention to the central bank’s underlying motivations. However, officials from the Bank of Ghana have been proactive in clarifying their stance.
The move has been publicly defended not as a distressed sale or a reaction to immediate economic pressures, but rather as a “deliberate portfolio diversification” strategy. This explanation suggests a proactive approach to rebalancing the nation’s financial assets, aiming to move away from a heavy concentration in gold.
Portfolio diversification is a common strategy employed by central banks and institutional investors alike, designed to spread risk and potentially enhance overall returns across various asset classes, which can include foreign currencies, bonds, and other commodities. While gold has long been considered a traditional safe-haven asset, an excessive concentration can limit flexibility and expose reserves to significant price volatility. This strategic move by the BoG could imply a decision to invest in assets perceived to offer more stable returns or greater strategic advantages in the current global economic environment.
This bold step by the Bank of Ghana will undoubtedly be scrutinized by financial analysts and observed by other central banks globally. It highlights a potential trend among central banks to re-evaluate long-standing reserve management tenets in an increasingly dynamic and complex global financial landscape. Only time will tell the full impact of this significant diversification strategy on Ghana’s financial stability and economic outlook.
Source: Original Article
