By Ayomide Otitoju
Sub-Saharan African central banks could face reserve and liquidity risks if gold prices drop sharply, Fitch unit BMI warned on Wednesday.
Countries including Nigeria, Ghana, and Tanzania have ramped up domestic gold purchases to diversify reserves amid global volatility. Others like Kenya, Uganda, Rwanda, Namibia, and Zimbabwe are either exploring or have begun similar accumulation.
“Gold is increasingly being used by sub-Saharan African markets as a strategic store of value,” said BMI analyst Orson Gard at an investor briefing, citing Ghana, where gold now makes up about one-third of reserves.
But Gard cautioned that a sharp price decline could severely impact reserve adequacy and export competitiveness, especially for economies reliant on gold exports.
BMI noted that gold prices, which hit record highs earlier in 2025, could now face downward pressure due to shifts in U.S. monetary policy.
The Bank of Ghana, already exposed to commodity swings, has launched a hedging programme to limit shocks. “Any sharp price drop would have an impact on international reserves,” said Governor Johnson Asiama.
BMI warned that some countries could face liquidity issues similar to India and Argentina’s crises in the past, struggling to convert gold holdings into hard currency during economic distress.
