Audio By Carbonatix
Former Finance Minister, Dr Mohammed Amin Adam, has cautioned that the Bank of Ghana’s reported sale of a significant portion of the country’s gold reserves could be masking underlying financial challenges.
Reacting to developments in a Facebook post on Thursday, March 19, the Karaga MP expressed concern that the disposal of more than half of Ghana’s gold holdings—accumulated under the Domestic Gold Purchase Programme—may signal a shift away from reserve strengthening towards balance sheet repair.
According to the Ranking Member on Parliament’s Finance Committee, if the proceeds from the sale were used primarily to offset losses, it would raise questions about the sustainability of such an approach and the transparency of the central bank’s financial reporting.
“If these transactions were primarily undertaken to offset financial losses, then this represents a fundamental shift from reserve accumulation toward balance sheet repair,” he noted.
Dr Amin Adam also challenged claims that the move could be justified based on portfolio diversification or alignment with International Monetary Fund frameworks, stressing that such explanations must be backed by tangible improvements in Ghana’s reserve position.
“Explanations framed as portfolio diversification must be assessed against outcomes. If the proceeds did not materially strengthen net international reserves, the macroeconomic rationale remains unclear,” he stated.
He concluded by urging the central bank to provide clarity on how the transactions will be reflected in its 2025 accounts, particularly in relation to reported gains and losses, insisting that transparency remains essential to maintaining public trust in the country’s financial institutions.
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