MPC Member Backs Gold Programme, Warns Against Asset Concentration

Mon Apr 27 2026

A member of the Bank of Ghana’s Monetary Policy Committee (MPC) has endorsed the continuation of Ghana’s gold reserve accumulation drive while cautioning against overexposure to a single commodity, as the central bank faces the financial consequences of its own stabilisation success.Ghana economic insights

Professor Festus Ebo Turkson, an Associate Professor of Economics at the University of Ghana and external MPC member, made the remarks on TV3’s Key Points programme on Saturday, April 25, as he weighed in on the policy trade-offs underpinning Ghana’s recent economic recovery.

He framed his comments around a broader principle: that no economic gain comes without cost. “Every economic policy comes with a cost. Price stability comes at a cost,” he said, urging policymakers and the public to engage in balanced discussions that weigh benefits against the burdens of intervention.

On inflation, Prof. Turkson explained that the recent disinflation had been driven by the central bank’s decision to absorb excess liquidity from the market. The policy measures delivered concrete results, with inflation declining to 3.2 percent in March 2026, marking a sustained downward trend from over 23 percent at the start of 2025.

On gold, he urged the Bank of Ghana to sustain its accumulation efforts under the Ghana Accelerated National Reserve Accumulation Policy (GANRAP) while exercising caution. GANRAP, approved by Parliament in February 2026, targets an increase in Ghana’s reserves to the equivalent of 15 months of import cover by 2028, with a planned purchase of approximately three tonnes of gold per week across the Ghana Gold Board and the central bank. “If gold is doing well, why shouldn’t Ghana take advantage of it. We should just take care we don’t put too much of our assets in gold so that when the gold prices go down, we don’t suffer,” he said.

His caution reflects a concern that has already registered at the Bank of Ghana. The Bank has acknowledged that gold came to represent over 42 percent of its total reserve portfolio as of October 2025, prompting steps to rebalance the portfolio by reducing the Bank’s allocation to gold in line with its strategic asset allocation framework.

His remarks followed a Council of State briefing on April 23 by Bank of Ghana Governor Dr. Johnson Pandit Asiama, who disclosed that the Bank’s 2025 financial results would reflect costs associated with stabilisation measures. These included reduced income from government securities following the Domestic Debt Exchange Programme (DDEP), elevated interest expenses from open market operations to curb inflation, and structural costs from the gold purchase programme, which the Governor said had been significantly reduced over time.

Dr. Asiama said Ghana is entering 2026 with stronger economic buffers than at any recent point in its history, with reserves at a record US$14.5 billion and the cedi having appreciated by 41 percent in 2025. His stated priorities for the year are credit quality, banking governance, export finance, and sustaining the gains of stabilisation.

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