The Chief Executive Officer of the Ghana Gold Board, Sammy Gyamfi, has defended the Bank of Ghana’s decision to sell portions of the country’s gold holdings, describing it as a prudent move in the face of declining global gold prices.
In a strongly worded statement, Gyamfi questioned critics of the policy, pointing to the recent drop in bullion prices from record highs.
“For those who have been unjustly attacking the Bank of Ghana… how do you feel about the free fall of gold prices we are currently witnessing?” he asked.
Falling Gold Prices Highlight Risks
According to him, gold, while widely regarded as a safe haven asset, is not immune to volatility. He noted that prices have dropped sharply in recent weeks, underscoring the risks of over-reliance on a single reserve asset.
“You see, gold is a proven safe haven asset. However, it is subject to significant price volatilities that pose considerable risk to reserve preservation.” - Sammy Gyamfi
The comments come amid growing debate over the central bank’s reserve management strategy, particularly its decision to convert part of its gold holdings into cash assets.
Gyamfi argued that Ghana, as a middle-income country with relatively modest reserve buffers, cannot afford to concentrate its holdings in gold alone. He stressed that diversification across asset classes is critical to maintaining financial stability.
“This is why a middle-income country like Ghana… ought not to over-concentrate its reserves in gold holdings but rather diversify same across different asset classes.” - Sammy Gyamfi
He further explained that the Bank of Ghana’s approach aligns with global best practices in reserve management, where safety and liquidity are prioritized.
BoG’s Strategic Move
Providing details of the transaction, Gyamfi revealed that the central bank converted 22 tonnes of gold into U.S. dollars, which were then added to reserves and invested to generate returns.
He added that the move has helped shield Ghana’s reserves from the impact of fluctuating gold prices while improving overall portfolio resilience.
Gyamfi concluded by commending the central bank’s leadership, stating that the decision has significantly minimized exposure to market shocks.
“Kudos Dr. Asiamah and your wonderful team at the BoG. Keep up the good work for mother Ghana,” he said.
The debate over Ghana’s reserve strategy continues, but the latest defense underscores the importance of balancing risk, liquidity, and long-term economic stability in managing national assets.
READ ALSO: Ghana Rejects One-Way Extradition at Global Fraud Summit
