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Bank of Ghana’s Sale of Gold Reserves to Cover 2025 Losses – Dr. Amin Adam
Former Finance Minister, Dr. Mohammed Amin Adam, has raised alarms over the government’s decision to sell half of Ghana’s gold reserves last year, claiming it has severely depleted the country’s reserves. In a detailed post on his Facebook page shared Wednesday night, Dr. Adam questioned the rationale behind the sale, pointing out that it undermines the original purpose of accumulating these reserves.
Dr. Adam outlined how the previous administration built Ghana’s gold reserves from a modest 8.8 tonnes to over 30 tonnes through the “Gold for Reserves Policy.” However, he accused the current government of liquidating more than half of these reserves to cover anticipated losses for 2025.
He expressed concern that the sale of over 50% of the gold reserves, generating around US$1.5 billion in proceeds, could raise doubts about the government’s policy consistency and effective balance sheet management.
“The central issue is not whether reserves can be reallocated, but why such a large portion was sold and how the proceeds were utilized,” Dr. Adam wrote. “If these sales were primarily aimed at covering financial losses, it signals a major shift in strategy, from accumulating reserves to simply patching up the balance sheet. In that case, financial results could mislead unless gains from gold sales are clearly distinguished from ongoing operations.”
Dr. Adam’s comments underscore the potential long-term implications of such a drastic move and its impact on the country’s fiscal integrity.
Story:Efua Nessa
Source :Loco tv