The Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, has strongly defended the Bank of Ghana (BoG) over its controversial decision to sell portions of the country’s gold reserves, pushing back against claims that the move was intended to conceal financial losses in 2025.

His response comes in the wake of allegations by former Finance Minister Dr. Mohammed Amin Adam, who questioned the rationale behind the reported liquidation of a significant share of the gold holdings.

The debate has unfolded against the backdrop of the recent economic history, particularly the Gold for Reserves Policy introduced under the previous New Patriotic Party (NPP) administration.

That policy saw the gold reserves increase significantly from about 8.8 tonnes to over 30 tonnes, as part of efforts to strengthen the country’s financial buffers, reduce reliance on foreign currencies and stabilize the cedi.

The accumulation of gold reserves was widely promoted as a strategic hedge against external shocks and currency volatility.

However, the current controversy was triggered after Dr. Amin Adam alleged that the Bank of Ghana had sold more than half of these reserves—reportedly generating about US$1.5 billion—and suggested that the proceeds may have been used to offset losses recorded by the central bank in 2025.

He warned that such a move, if true, could signal a shift from prudent reserve accumulation to short-term balance sheet management, raising concerns about transparency and policy consistency.

Responding to these claims, Sammy Gyamfi, who heads GoldBod, dismissed the allegations and defended the central bank’s actions as a strategic and well-calculated reserve diversification decision.

In a detailed statement, he argued that critics of the Bank of Ghana had failed to appreciate the risks associated with over-concentration in gold as a reserve asset.

According to Gyamfi, while gold is widely regarded as a safe-haven asset, it is also subject to significant price volatility on the global market.

He pointed to recent fluctuations in gold prices, noting that the price of bullion had dropped sharply in recent weeks from about $5,500 per ounce to approximately $4,500 per ounce.

This, he said, underscores the importance of managing reserves in a way that minimizes exposure to market swings.

“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 stated.

He explained that Ghana, as a middle-income country with gross international reserves covering about 5.7 months of imports, cannot afford to concentrate too heavily on a single asset class such as gold.

Instead, he emphasized that prudent reserve management requires diversification across different financial instruments to ensure safety, liquidity and optimal returns.

Providing further details, Sammy Gyamfi disclosed that the Bank of Ghana converted approximately 22 tonnes of gold into U.S. dollars, which were subsequently added to the country’s reserves and invested to generate returns.

He stressed that this move did not amount to a loss of national assets but rather a reallocation of reserves into more liquid and income-generating forms.

“Simply put, the BoG converted about 22 tonnes 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,” he explained.

He further argued that the timing of the decision has proven beneficial, as it has helped cushion the reserves against the recent downturn in gold prices.

According to him, maintaining a large concentration in gold would have exposed the country to significant valuation losses as prices declined.

Sammy Gyamfi also commended the leadership of the Bank of Ghana, particularly Dr. Johnson Asiama and his team, for what he described as prudent and forward-looking economic management.