Economist, Professor Godfred Bokpin has cautioned the Bank of Ghana to be measured in deploying the country’s gold reserves to support the economy and stabilise the Ghanaian cedi.
His comments come after the BoG Governor, Dr Johnson Asiama explained that gold holdings declined from about 37 tonnes in September to roughly 19 tonnes by the end of 2025.
Dr. Asiama had attributed the drop to the central bank’s portfolio rebalancing.
However, speaking to Citi News, Professor Bokpin, stressed the need for prudence to safeguard reserve buffers.
“It may be necessary at some point for the BoG to even hedge the gold because gold price may fall one day and all your gold holdings if you move it to market, may not amount to much. It is possible that they can rebalance their portfolio from gold to FX. We need to exercise caution.
“We must be moderate in how we use our reserves. The fact that we have reserves does not mean we should use it aggressively to prop up the value of the cedi.
“If the cedi became strong not as a result of transformation of the economy but simply because of intervention then sustaining it is going to be very difficult,” he said.
