Majority Defends BoG’s GH¢9.6bn Gain as Legitimate
The Majority in Parliament has rejected claims by the Minority that the Bank of Ghana (BoG) sold off a substantial portion of its gold reserves to mask financial difficulties, insisting that the reported GH¢9.57 billion gain from gold transactions in 2025 reflects standard reserve management practices.
The Minority had earlier argued that the central bank is “policy insolvent,” claiming it cannot sustain its core monetary operations without resorting to extraordinary interventions. It also alleged that the BoG disposed of up to 50 per cent of its gold holdings to strengthen its financial position artificially.
However, in a statement issued on Sunday, May 3, 2026, Atta Issah, Member of Parliament for Sagnarigu and a member of Parliament’s Finance Committee, dismissed the claims, accusing the Minority of misinterpreting technical financial data and drawing misleading conclusions.
“The characterisation of the GH¢9.6 billion as a falsehood simply because it arises from gold transactions is misleading,” the Majority stated.
According to the caucus, gold transactions are a routine component of central bank operations, as part of broader reserve management strategies. These typically involve adjusting asset holdings — including gold, foreign currencies, and other instruments — to optimise liquidity, safety, and returns.
“Gains from such portfolio management are legitimate income. They are not fake simply because they are not recurring. Non-recurring does not mean illegitimate,” the statement explained.
The Minority had maintained that excluding the one-off gold-related gain would leave the BoG with an operational deficit of about GH¢4 billion, which it cited as evidence of “policy insolvency.”
In response, the Majority argued that such an assessment overlooks how central banks operate, noting that their financial health cannot be judged solely on annual profit and loss figures.
“Central banks are not commercial institutions. Policy solvency is not determined by a single year’s operating income minus expenses. It depends on the overall balance sheet, including reserves, revaluation buffers, and sovereign backing,” the caucus said.
The Majority also rejected suggestions that the BoG had engaged in a forced liquidation of its gold reserves.
“The audited statements do not indicate any distress liquidation. What they show is a measured portfolio adjustment,” it stressed.
Additionally, the caucus pointed to Ghana’s recent policy direction of increasing gold reserves through domestic purchase programmes, arguing that this contradicts claims of depletion driven by financial strain.
It further contextualised the central bank’s actions within ongoing macroeconomic pressures, including debt restructuring, exchange rate volatility, and tightening global financial conditions.
According to the Majority, converting part of the Bank’s gold holdings into liquidity should be seen as a strategic response to these pressures rather than a sign of financial collapse.
“This is not evidence of collapse. It is evidence of management under pressure,” the statement concluded.
By: Janice Opoku-Agyemang
