Dr. Mohammed Amin Adam, the former Minister of Finance and the member of parliament for Karaga , has issued a stern demand for the Bank of Ghana (BoG) to provide a transparent account regarding the liquidation of over 50 percent of the nation’s gold reserves during the 2025 fiscal year.
The senior policy maker expressed deep concern over the sudden offloading of these strategic assets, which reportedly generated approximately US$1.5 billion in financial gains.
“The Bank of Ghana must come clear on the sale of over 50 percent of Ghana’s gold reserves in 2025. The central question is not whether reserves can be reallocated, but why such a substantial share was sold, and how the proceeds were used.”
Dr. Mohammed Amin Adam, the former Minister of Finance
This sharp reduction in bullion holdings follows a period of aggressive accumulation between 2023 and 2024, where the previous administration utilized the Domestic Gold Purchase Programme (DGPP) to bolster reserves from 8.8 tonnes to more than 30 tonnes.
Dr. Amin Adam argued that the decision to sell more than half of these holdings contradicts the original policy intent of strengthening reserve buffers and reducing reliance on foreign exchange.
He pointedly questioned whether the proceeds were utilized for genuine macroeconomic stabilization or as a convenient mechanism to offset significant operational losses recorded by the central bank in 2025.
“The central bank must prove that it did not sell the gold to cover huge losses recorded in 2025. How will the Bank report its 2025 losses vis-a-vis the gains from the sale of gold reserves? How sustainable is this practice where operational losses can easily be offset by the sale of our gold reserves?”
Dr. Mohammed Amin Adam, the former Minister of Finance
Erosion of Policy Consistency and Reserve Strategy
The former Minister highlighted a “fundamental shift” from the strategic reserve accumulation phase championed under the Vice Presidency of Dr. Mahamudu Bawumia.
While the DGPP was “explicitly designed to strengthen reserve buffers,” the 2025 sell-off raises alarms about balance sheet management.
Dr. Amin Adam warned that if the transactions were primarily “undertaken to offset financial losses,” the central bank risks overstating its underlying performance.
He insisted that one-off gains from gold sales must be clearly separated from core operational results to prevent “headline financial outcomes” from masking fiscal mismanagement.
Transparency vs. Portfolio Diversification
While the Bank of Ghana has previously framed such movements as “portfolio diversification” to achieve a balance between gold and foreign currency, Dr. Amin Adam remains skeptical.
He noted that such explanations must be “assessed against outcomes,” emphasizing that if the proceeds did not “materially strengthen net international reserves,” the macroeconomic rationale remains murky.
The former Finance Minister also urged caution regarding references to International Monetary Fund (IMF) alignment, noting that “IMF-supported frameworks emphasize transparency, accountability, and the preservation of central bank balance sheet integrity.”
Risks to Macroeconomic Stability and Credibility
The implications of this sell-off extend beyond simple accounting; they touch on the core of Ghana’s economic credibility.
Dr. Amin Adam argued that the real motivation may have been to “cover losses occasioned by poor management of the Bank” rather than strategic asset allocation.
At a time when “policy credibility is critical,” he maintained that the Ghanaian public is owed a “full and transparent account” of these decisions.
Without such clarity, the sustainability of using the nation’s “precious mineral heritage” to plug holes in the central bank’s balance sheet remains a looming threat to long-term financial stability.
READ ALSO: Torrential Rains and Flooding Claim 13 Lives in Malawi
