Concerns have emerged over Ghana’s gold reserve management following contrasting public statements by former Finance Minister Mohammed Amin Adam and the Chief Executive Officer of GoldBod, Sammy Gyamfi, over the Bank of Ghana’s decision to sell a significant portion of the country’s gold holdings.
In a Facebook post shared on Wednesday night, Dr Amin Adam questioned the rationale behind the reported sale of more than half of Ghana’s gold reserves, warning that the move could undermine the purpose for which the reserves were accumulated.
He recalled that between 2023 and 2024, the previous administration increased the country’s gold holdings from about 8.8 tonnes to over 30 tonnes under the Domestic Gold Purchase Programme introduced by Mahamudu Bawumia to strengthen reserve buffers and reduce reliance on foreign exchange.
“The Bank of Ghana must come clear on the sale of over 50 percent of Ghana’s gold reserves in 2025. Between 2023 and 2024, the NPP government worked to increase Ghana’s gold holdings significantly, from about 8.8 tonnes to over 30 tonnes, under the Domestic Gold Purchase Programme (DGPP) introduced by Dr. Mahamudu Bawumia, then Vice President of the Republic. This policy was explicitly designed to strengthen reserve buffers, support macroeconomic stability, and reduce dependence on foreign exchange,” he wrote.
He argued that the reported liquidation, which he said generated about $1.5 billion, raised fundamental questions about policy direction and financial management.
“Against this backdrop, the liquidation of more than half (+50%) of these reserves—generating approximately US$1.5 billion in financial gains—raises serious concerns about policy consistency and balance sheet management.
“The central question is not whether reserves can be reallocated, but why such a substantial share was sold, and how the proceeds were used.”
Dr Amin Adam further suggested that if the sales were undertaken to offset financial losses, it would mark a shift away from reserve accumulation towards balance sheet repair.
“If these transactions were primarily undertaken to offset financial losses, then this represents a fundamental shift from reserve accumulation toward balance sheet repair. In that case, headline financial outcomes risk overstating underlying performance, unless one-off gains from gold sales are clearly separated from core operational results.”
He challenged the central bank to demonstrate transparency in its reporting.
“The central bank must prove that it did not sell the gold to cover huge losses recorded in 2025. How will the Bank report its 2025 losses vis-avis the gains from the sale of gold reserves? How sustainable is this practice where operational losses can easily be offset by the sale of our gold reserves?
“The Bank of Ghana is yet to tell Ghanaians that the real reason behind the sale was not to achieve the right proportions of assets between foreign currency and gold, but simply to cover losses occasioned by its poor management of the Bank.”
Dr Amin Adam also questioned the justification of portfolio diversification, arguing that such explanations must be assessed against actual outcomes and their impact on net international reserves, while cautioning against loosely linking the decision to International Monetary Fund frameworks.
However, in a separate Facebook post, Mr Gyamfi defended the central bank’s actions, describing the move as a prudent strategy to protect the country’s reserves from volatility in global gold prices.
“For those who have been unjustly attacking the Bank of Ghana for their decision to sell portions of the country’s gold holdings, as a deliberate reserve portfolio diversification measure, how do you feel about the free fall of gold prices we are currently witnessing, where the price of bullion in the last few weeks has dropped from a record-high of about $5,500/oz to about $4,500?” he wrote.
He emphasised that while gold remains a safe-haven asset, it is subject to price fluctuations that could expose countries with limited reserves to significant risks.
“You see, gold is a proven safe-haven asset. However, it is subject to significant price volatilities that pose considerable risk to reserve preservation.
“This is why a middle-income country like Ghana with Gross International Reserves of barely 5.7 months, ought not to over-concentrate its reserves in gold holdings but rather, diversify same across different asset classes.”
Mr Gyamfi explained that the central bank converted a portion of the gold into foreign currency to strengthen liquidity and generate returns.
“In reserve portfolio management, safety and liquidity considerations are paramount. Converting portions of our gold holdings into cash and investing same to generate returns for the country, was therefore a SAFE and sensible decision by the BoG.
“Simply put, the BoG converted about 22 tons of the country’s gold holdings into U.S dollars, added it to our reserves and invested it to generate returns for the country. Our reserves remained intact. No national asset was lost. And this decision has significantly minimized the impact of the recent collapse in gold prices on Ghana’s reserve position.
“Kudos Dr. Asiamah and your wonderful team at the BoG. Keep up the good work for mother Ghana.”
Source: www.kumasimail.com
