A financial analyst, Joe Jackson has argued that although Ghana’s gold reserves have declined, this has not resulted in a corresponding depreciation of the local currency.
Speaking on TV3’s Business Focus on Monday, 2 February 2026, he explained that reserves are typically seen as a measure of a country’s economic strength, but recent developments suggest other factors are also supporting the cedi.
“Look at it this way: reserves show value. If my reserves drop by 50%, then it means I am not getting value for that 50% I had. But in this case, the currency has not reacted in the same way,” he said.
The CEO also noted that liquidity conditions in the economy have so far prevented significant pressure on the currency.
He further added ,“For now, we are okay because liquidity management has been reasonable,” suggesting that global economic uncertainty may explain recent movements in pricing and market behaviour.
“One of the reasons the Bank of Ghana is talking about the speculative and transitory nature of pricing could be the instability in the global environment,” he said.
His comments follow remarks by the Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, who recently justified the decision to significantly reduce the country’s gold reserves from over 30 tonnes to about 20 tonnes, citing broader macroeconomic considerations.
Meanwhile, Gold reserves form part of a country’s foreign exchange assets and are often used to support currency stability and investor confidence. Ghana, Africa’s largest gold producer, has in recent years relied on gold as a key buffer against external shocks.
However, central banks may adjust reserve levels to meet liquidity needs, manage debt obligations or respond to global financial pressures. Analysts say movements in exchange rates are influenced not only by reserves, but also by inflation, interest rates, capital flows and global market conditions.
