Former Finance Minister Mohammed Amin Adam and GoldBod CEO Sammy Gyamfi have made divergent public remarks regarding Ghana’s gold reserve management in response to the Bank of Ghana’s decision to sell a sizable amount of the nation’s gold assets.
Dr. Amin Adam questioned the reasoning for the alleged sale of more than half of Ghana’s gold stockpiles in a Facebook post posted on Wednesday night, cautioning that the action would compromise the goal for which the reserves were amassed.
He recalled that in order to improve reserve buffers and lessen dependency on foreign currencies, the previous administration expanded the nation’s gold holdings from roughly 8.8 tonnes to over 30 tonnes between 2023 and 2024 under Mahamudu Bawumia’s Domestic Gold Purchase Programme.
“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 posted.
He argued that the supposed liquidation, which produced roughly $1.5 billion, brought up important issues regarding financial management and policy orientation.
“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 added that a change from reserve accumulation to balance sheet repair would occur if the transactions were made in order to offset financial losses.
“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 urged the central bank to show that its reporting is transparent.
Mr. Gyamfi, however, defended the central bank’s activities in a different Facebook post, characterising the action as a wise measure to shield the nation’s reserves from fluctuations in the price of gold globally.
“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?” Sammy Gyamfi wrote.
He highlighted that although gold is still a safe-haven investment, its price volatility might put nations with little reserves at serious risk.
“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 clarified that in order to increase liquidity and produce profits, the central bank turned some of the gold into foreign currency.
“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: newsthemegh.com