Dr. Frank Bannor Demands Explanation from BoG Over Sharp Drop in Ghana’s Gold Reserves

Dr. Frank Bannor, a Development Economist and Senior Research Fellow at the Institute of Economic Research and Public Policy (IERPP), has called on the governor of the Bank of Ghana (BoG) to publicly account for a dramatic and unexplained decline in the country’s gold reserves.

His call follows the release of the central bank’s latest External Sector Developments data, which show that Ghana’s gold holdings fell sharply from 37.1 tonnes in September 2025 to 18.6 tonnes by December 2025—a reduction of 18.5 tonnes within just three months.

Describing the development as “deeply concerning,” Dr. Bannor questioned both the scale and the speed of the drawdown.

“Can the Governor of the Bank of Ghana explain why Ghana’s gold holdings have fallen from 37.1 tonnes in September 2025 to 18.6 tonnes in December 2025?” he asked.
“It is important to note that the New Patriotic Party (NPP) administration left Ghana’s gold reserves at 30.5 tonnes in December 2024.”

Sudden and Unprecedented Depletion

Official BoG figures indicate that Ghana ended December 2024 with 30.5 tonnes of gold reserves. Throughout most of 2025, the reserves showed steady growth, rising to 31.0 tonnes in March, 33.0 tonnes in June, and peaking at 37.1 tonnes in September 2025.

However, this upward trend reversed abruptly in the final quarter of the year. By December 2025, gold holdings had plunged to 18.6 tonnes, erasing all gains made earlier in the year and leaving reserves significantly below the level inherited from the previous administration.

Contradictions in External Sector Performance

Dr. Bannor noted that the sharp fall in gold holdings appears inconsistent with Ghana’s otherwise improving external sector performance during the same period.

According to Bank of Ghana data, Gross International Reserves (GIR) increased substantially, rising from US$9.11 billion in December 2024 to US$13.83 billion by December 2025.

“This makes the depletion of gold reserves even more puzzling,” he observed, questioning why such a significant drawdown would occur at a time when overall reserve buffers were strengthening.

Dr. Frank Bannor: Call for Transparency and Accountability

Emphasising the strategic importance of gold to a gold-producing country like Ghana, Dr. Bannor argued that such a move cannot go unexplained.

“Gold is not just another reserve asset. It is a strategic store of value, especially in times of global uncertainty. A near 50 per cent reduction in physical gold holdings within three months cannot pass without explanation,” he stressed.

He further questioned the nature of the transaction, asking whether the gold was sold outright, pledged as collateral, swapped for liquidity, or used under an off-market arrangement.

Risk to Public Confidence

Dr. Bannor warned that the absence of a clear explanation from the central bank could undermine public confidence in reserve management and broader monetary governance particularly at a time when transparency is critical to Ghana’s ongoing economic recovery.

He urged the Bank of Ghana to provide a comprehensive public account of the decision, including the volume of gold involved, the purpose of the transaction, and the financial benefits derived.

“The public deserves to know what happened to nearly 19 tonnes of Ghana’s gold in just one quarter,” he concluded.

Source: 3news.com

Also read: Bank of Ghana Seeks Reimbursement for Gold for Reserves Programme, Calls for Burden Sharing