The Chief Executive Officer of GoldBod, Sammy Gyamfi, has defended the Bank of Ghana (BoG) over its decision to sell portions of the country’s gold reserves, describing the move as a prudent strategy to safeguard Ghana’s economy.

His remarks come amid a sharp decline in global gold prices, with bullion reportedly dropping from about $5,500 per ounce to around $4,680 per ounce in recent weeks.

Mr Gyamfi dismissed criticisms of the central bank’s decision, stating that gold, although widely regarded as a safe-haven asset, is subject to significant price volatility that can pose risks to reserve preservation.

According to him, Ghana, as a middle-income country with gross international reserves covering approximately 5.7 months of imports, cannot afford to overly concentrate its reserves in a single asset class.

He explained that the BoG’s decision to convert part of its gold holdings into cash aligns with global best practices in reserve portfolio management, where safety and liquidity are key considerations.

The central bank, he said, converted about 22 tonnes of gold into US dollars, which were added to the country’s reserves and subsequently invested to generate returns.

“Our reserves remained intact. No national asset was lost,” Mr Gyamfi stressed, adding that the move has helped cushion Ghana against the impact of the recent drop in gold prices.

Mr Gyamfi commended the Governor of the Bank of Ghana, Johnson Asiama, and his team for what he described as a “safe and sensible” decision that has protected the country’s reserve position.