Banking Consultant Backs Gold Reserves Sale Strategy

Fri Jan 30 2026

Financial analyst and banking consultant Dr. Richmond Atuahene has endorsed Bank of Ghana’s (BoG) decision to reduce its gold holdings, describing the strategy as both timely and economically sound for the West African nation’s reserve management. Dr. Atuahene told The High Street Journal in an exclusive interaction that the move reflects smart reserve management rather than financial weakness, particularly for a developing economy where every cedi must deliver maximum value. His support adds to growing debate over BoG’s reduction of gold reserves from 37.1 tonnes in September 2025 to 18.6 tonnes by December 2025.

The banking consultant cautioned against excessive gold accumulation despite its traditional status as a reserve asset. Holding too much gold exposes Ghana to unnecessary risk because prices respond heavily to external forces beyond national control, he argued.

While gold provides stability, Dr. Atuahene noted its value can swing sharply due to global developments. Overreliance makes it less dependable as a long term anchor for developing economies needing flexible reserve management.

Geopolitical events present particular concern for the analyst. Wars, political tensions and global uncertainty can push gold prices upward, but conditions can shift quickly and trigger sharp corrections. Ghana holding large volumes means sudden price drops could significantly reduce reserve values, he explained.

Selling part of Ghana’s gold when prices remain elevated reduces exposure to such shocks. Dr. Atuahene characterised current timing as crucial for locking in strong gains rather than risking future downturns.

He compared the approach to selling any asset when market value peaks instead of hoping prices rise further. The strategy maximises value for the country today rather than gambling on tomorrow’s market conditions.

Diversification strengthens foreign exchange reserves more effectively than commodity concentration, according to Dr. Atuahene. Converting some gold into other currencies improves liquidity and flexibility for Ghana.

This enhanced position makes responding to external shocks easier while supporting the cedi and meeting international obligations. Most countries avoid heavy reliance on gold alone, instead spreading reserves across major currencies and financial instruments to reduce risk, the consultant observed.

Ghana’s decision aligns with global best practice and reflects more balanced reserve management. Peer nations maintain diversified positions rather than concentrating holdings in single commodities.

Proceeds from gold sales can directly support the economy beyond reserve strategy considerations. Foreign exchange earned helps stabilise the cedi and provides resources for servicing external loans, easing pressure on public finances.

Dr. Atuahene emphasised that gold should hedge risk without dominating strategy. In today’s volatile environment, BoG’s decision represents a prudent step toward stronger reserves, greater stability and improved economic management overall.

The banking consultant also welcomed BoG’s commitment to restock reserves after completing the offloading process. This ensures Ghana maintains adequate gold holdings while benefiting from current favourable market conditions.

Ghana’s gold reserve reduction follows a pattern among African central banks seeking to optimise reserve composition. Nigeria, Kenya and South Africa have similarly adjusted holdings to balance precious metals against currency assets.

BoG Governor Dr. Johnson Asiama previously defended the reduction as necessary for supporting foreign exchange liquidity during Ghana’s economic recovery phase. The central bank maintains reserves serve multiple purposes including import financing and debt servicing.

Critics including economist Dr. Bannor have questioned the sharp reduction’s timing and transparency. They argue Ghana should maintain higher gold percentages given the metal’s inflation hedge properties.

Dr. Atuahene’s endorsement carries weight given his background advising financial institutions across West Africa. His firm Universal Capital Management Limited specialises in reserve management and monetary policy consultation.

The analyst has previously commented on related BoG policies including digital lending regulation and foreign exchange controls. He consistently advocates for data driven approaches to central banking challenges.

Ghana’s total international reserves reached 13.8 billion US dollars in December 2025 according to BoG figures, up from 9.3 billion US dollars twelve months earlier. The increase occurred despite reduced gold holdings.

Source: https://www.newsghana.com.gh/