Audio By Carbonatix
The Chief Executive Officer of GoldBod, Sammy Gyamfi, has mounted a spirited defence of the Bank of Ghana’s (BoG) controversial decision to liquidate portions of the nation’s gold holdings, as the global bullion market faces a sharp downturn.
In a Facebook post on Thursday, March 19, Mr Gyamfi took aim at critics of the central bank, pointing to the current "free fall" of gold prices as vindication for the BoG's strategic portfolio rebalancing. The market has reportedly seen bullion prices slide from a record high of approximately $5,500/oz to around $4,680/oz in just a few weeks.
Mr Gyamfi argued that while gold is traditionally viewed as a "safe haven", it remains susceptible to significant price volatilities that can threaten reserve preservation. He maintained that for a middle-income country like Ghana, over-concentration in a single asset class is a high-risk strategy.
Ghana currently maintains Gross International Reserves of barely 5.7 months, necessitating a diverse asset base.
In managing national reserves, the GoldBod CEO emphasised that safety and liquidity must remain the paramount considerations.
Converting gold into cash to generate investment returns was described by Mr Gyamfi as a "SAFE and sensible" move by the BoG leadership.
Addressing concerns regarding the loss of national assets, the GoldBod CEO clarified the mechanics of the Central Bank's operation. He revealed that the BoG converted approximately 22 tons of gold into U.S. dollars.
According to Mr Gyamfi, these funds were added to the national reserves and invested to generate active returns for the country. He insisted that "no national asset was lost" during the process, as the value simply shifted from physical bullion to liquid currency and interest-bearing investments.
Minimising the impact of the market crash
The CEO credited the BoG team, led by Dr Asiamah, for foresight in executing the sale before the current market slump. By offloading the gold at higher prices, the Central Bank has significantly cushioned Ghana’s reserve position against the recent collapse in global gold prices.
“Kudos Dr Asiamah and your wonderful team at the BoG. Keep up the good work for mother Ghana,” Gyamfi concluded, calling for an end to what he described as "unjust" attacks on the institution’s professional judgment.
As the global commodity market continues to show instability, the BoG’s move is being framed by supporters not as a loss of wealth, but as a tactical shift to ensure the nation's financial buffers remain resilient.
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