Bank of Ghana’s $1.3bn profit from gold sale could help narrow 2025 losses

BoG Gold Sale Generates $1.3 Billion Profit, Eases 2025 Loss Pressure

The Bank of Ghana (BoG)’s decision to sell more than half of its gold reserves in November and December 2025 may have delivered a significant accounting advantage beyond its stated reserve management objectives.

The transaction, which reportedly generated a profit of about $1.3 billion—equivalent to roughly GH¢13 billion—could substantially reduce the central bank’s loss position for the 2025 financial year, offering temporary financial relief amid ongoing balance sheet challenges.

Speaking at the 129th Monetary Policy Committee press briefing held on March 19, 2026, Governor Johnson Asiama confirmed that the sale of over 19 tonnes of gold resulted in a major profit.
“The transaction made a profit of over $1.3 billion, and it is all within our international reserves,” he stated.

Profit Driven by Surge in Global Gold Prices

The realised profit largely reflected the difference between the price at which the gold had been accumulated and the significantly higher prices at which it was sold, as global gold prices surged throughout 2025.

The primary motivation for selling approximately 51% of Ghana’s gold holdings was to rebalance the country’s international reserves. Over time, gold had grown into a disproportionately large component of the reserve portfolio, increasing the Bank’s exposure to fluctuations in global gold prices.

By reducing this exposure, the central bank aimed to stabilise its reserve composition and improve liquidity within its asset base. However, beyond reserve diversification, the transaction also carried important financial reporting implications.

Background: Financial Strain Since 2022

The Bank of Ghana has been operating under significant financial strain since 2022, when it intervened to support the central government during Ghana’s economic crisis. That intervention resulted in unprecedented losses and pushed the central bank into negative equity.

Efforts are currently underway to recapitalise the Bank’s balance sheet. These include the issuance of government bonds, the transfer of certain state-owned enterprise liabilities—particularly those linked to the Ghana Gold Board and the Ghana Cocoa Board—from the Bank’s books to the central government, as well as other restructuring measures expected to be completed by 2032.

In 2022, the central bank recorded a historic loss of approximately GH¢60 billion. By 2024, this loss had narrowed significantly to GH¢9.3 billion, reflecting gradual recovery efforts.

Rising Costs and Currency Pressures in 2025

Despite this progress, the scale and intensity of the Bank’s operations in 2025 suggest that it was likely facing another substantial loss for the year.

Aggressive open market operations alone cost the Bank about GH¢17 billion in 2025, a sharp increase from GH¢8.6 billion recorded in 2024.

Additionally, the Bank incurred more than GH¢2 billion in losses from its domestic gold operations conducted in partnership with the Ghana Gold Board.

At the same time, macroeconomic developments added further pressure. The sharp appreciation of the Ghanaian cedi—by more than 40% in 2025—created valuation challenges for the central bank.

When the cedi strengthens, the local currency value of foreign-denominated assets declines. As a result, the Bank would have recorded notable valuation losses on its dollar-denominated reserves.

Furthermore, income generated from these foreign assets translated into fewer cedis when converted into local currency, further weakening the Bank’s overall profit position.

Together, these factors point to a sizeable loss outlook for the central bank in 2025 prior to the gold sale.

Timing and Accounting Impact of Gold Sale

The sale of approximately 19 tonnes of gold took place in November and December 2025, the final months of the Bank’s accounting year. This timing is particularly significant from an accounting perspective.

Because the transaction generated a realised profit of about $1.3 billion (GH¢13 billion), the gain could be recognised in the Bank’s 2025 profit and loss statement, subject to its accounting policies and final determination by auditors.

If fully recognised, this profit could materially offset the Bank’s losses for the year, improving its reported financial position.

Under the Bank’s revised accounting framework, only realised gains from transactions can be recorded in the income statement. In contrast, valuation gains—such as those resulting from rising gold prices—are recorded in other comprehensive income and do not directly impact profit.

This means that for the central bank to benefit from higher gold prices in its income statement, it must convert those gains into realised profits through actual sales.

Had the gold sale occurred in January 2026 instead, the gains would have been recorded in the 2026 financial year and would not have contributed to offsetting 2025 losses.

Global Comparison: Banque de France Example

Similar balance sheet management strategies have been observed internationally. France’s central bank, the Banque de France, recently reported a capital gain of €12.8 billion from gold-related transactions.

According to Reuters, this gain enabled the Banque de France to return to profitability, posting a net profit of €8.1 billion in 2025 after recording a €7.7 billion loss in 2024.

Policy Outcomes Beyond Accounting Gains

Beyond its accounting benefits, the Bank of Ghana’s decision to sell roughly half of its gold reserves achieved several key policy objectives.

The move helped rebalance the reserve portfolio, reduced exposure to gold price volatility, improved liquidity within reserve assets, and strengthened the Bank’s ability to intervene in foreign exchange markets when necessary.

These outcomes align with broader monetary and financial stability goals, particularly in a period of macroeconomic adjustment.

Awaiting Final Auditor Determination

Whether the profit from the gold sale will ultimately be recognised in the Bank’s income statement remains subject to audit review.

The Bank of Ghana’s audited financial statements for the 2025 financial year are expected to be released at the end of April 2026. The final treatment of the gold sale profit will play a crucial role in determining the central bank’s reported financial performance for the year.