Ghana must build ‘reserves upon reserves’ amid gold gains – Economist

Market analysts are urging managers of the economy to leverage favourable gold prices to build stronger foreign reserve buffers, despite Ghana’s external position showing improvement.

The country’s gross international reserves currently stand at $12 billion, up from $10.7 billion in August 2025, providing 6.5 months of import cover.

Analysts say while this marks a positive step, continued accumulation is crucial to sustaining currency stability in the face of global market uncertainties.

Economist Professor Patrick Asuming, speaking to Citi Business News on the sidelines of the 14th Ghana Economic Forum, cautioned against assuming gold prices will remain at record highs indefinitely.

“I don’t think what we’ve seen over the last week is enough trend for us to say that the gold has peaked and that the price is going to come down,” he said.

He explained that Ghana must take advantage of the current favourable conditions to build a stronger external cushion. “We know that gold is not going to stay at this record high for the foreseeable future. At some point, the rally will stop. And I think that’s why it’s important that we take advantage by building reserves upon reserves upon reserves, so that when the hard times come, you have enough reserve to support the currency and keep it stable,” he added.

Professor Asuming asserted that while Ghana’s reserves have reached historic levels, efforts to strengthen them must continue. “Yes, our reserves are historic high, but it doesn’t stop us from keeping more of the reserves,” he noted.

The gold market’s downturn may be far from over. After plunging 6% on October 21—its sharpest single-day fall in over a decade—the precious metal saw a mild rebound later in the week, briefly reviving investor optimism. But that optimism appears short-lived.

As of October 28, gold traded at $3,931.80 per ounce, down from $4,356.21 on October 20, according to American Hartford Gold. While prices remain elevated compared to recent years, the decline marks a significant pullback for a commodity that had enjoyed a sustained rally for much of 2025.

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