GoldGhana’s gross international reserves surpassed 11 billion dollars by mid 2025 and reached 11.4 billion dollars by October, providing nearly five months of import cover and reinforcing confidence in the country’s trade and financial systems as businesses benefit from improved currency stability and predictable foreign exchange rates.
The Bank of Ghana (BoG) announced in late November 2025 that the reserves had exceeded the International Monetary Fund’s (IMF) end of year benchmark of 8.366 billion dollars, equivalent to 3.3 months of import cover. Governor Dr. Johnson Pandit Asiama stated that Ghana achieved what the IMF programme expected by the end of December 2025 months ahead of schedule.
The substantial reserve levels are widely regarded as a key buffer for the local currency, signaling stability to traders, importers, and investors while helping to mitigate risks associated with foreign exchange volatility. According to the Importers and Exporters Association of Ghana (IEAG), these reserve levels represent more than just numbers on a balance sheet; they translate into tangible confidence for businesses operating across the supply chain.
The Association acknowledged that adequate reserves reduce the uncertainty importers often face when sourcing goods and managing dollar denominated obligations, ultimately lowering operational costs and enabling smoother trade flows. This tangible buffer provides confidence to traders and investors alike, contributing to both currency stability and predictable import costs.
The reserves build up reflects several converging factors. Dr. Asiama highlighted that cocoa inflows played a significant role, with cocoa exports generating about 2.7 billion dollars. Strong remittance inflows have also supported currency stability and broader economic gains. The current account surplus, together with favourable balances in the capital and financial accounts, translated into an overall balance of payment surplus of 1.8 billion dollars.
Ghana’s international reserves stood at 7.4 billion dollars in October 2024, meaning the country added approximately 4 billion dollars to its reserves during 2025, marking a record achievement in the country’s reserves accumulation. The BoG stated on December 25 that tentative data as of mid December 2025 suggested international reserves could exceed 13 billion dollars by the end of 2025, further contributing to rising confidence in the economy.
The impact of strengthened reserves was evident across Ghana’s ports and trading ecosystem in 2025. Businesses benefited from more predictable foreign exchange rates, which reduced the cost of clearing imported goods and improved liquidity for companies reliant on working capital denominated in foreign currencies. These developments contributed to faster cargo movement, higher throughput at ports, and overall improved efficiency for the logistics and trade sectors.
The cedi appreciated approximately 41 percent against the US dollar in 2025, making it the best performing currency globally after the Russian ruble and marking the first annual gain in over 30 years. The currency traded near 10.50 cedis to the dollar by year end, compared to approximately 14.70 cedis in January 2025.
However, the BoG’s exchange rate management strategy has drawn scrutiny from international observers. An IMF report released in July 2025 revealed that the central bank injected 1.4 billion dollars into the foreign exchange market in the first quarter of 2025 alone as part of efforts to stabilize the cedi. The scale of intervention exceeded the entire 2023 total of 1 billion dollars.
In 2024, the BoG sold a total of 3 billion dollars in the market, with 2 billion dollars coming in the final quarter ahead of general elections. The IMF noted that large scale foreign exchange intervention continued in 2025, with the strong external sector along with repeated intervention contributing to the cedi’s 60 percent nominal exchange rate appreciation between November 2024 and May 2025.
While acknowledging the central bank’s success in stabilizing the cedi, the IMF urged a shift towards a more rules based approach. The Washington based lender recommended that the BoG scale back its involvement in the foreign exchange market and allow greater exchange rate flexibility, calling for adoption of a formal internal intervention framework to enhance transparency and predictability.
Ghana’s external position has been bolstered by higher gold prices, stronger cocoa earnings, robust remittance inflows, and domestic gold purchases under the central bank’s Gold for Reserves programme managed by GoldBod. These buffers allowed the BoG to intervene without significantly drawing down international reserves.
By October 2025, gold holdings at the Bank of Ghana reached 38.04 tonnes, up from 8.78 tonnes in May 2023. The Gold for Reserves programme has been credited with providing the central bank with a hard asset buffer that reduces reliance on the US dollar, though questions persist about costs associated with the initiative.
Dr. Asiama clarified that the Gold Purchase Programme serves as a reserve management tool rather than a financing arrangement. He also stressed the importance of structural reforms to reduce Ghana’s vulnerability to external shocks due to reliance on primary commodity exports like oil, gold, and cocoa. The Governor encouraged greater value addition in sectors such as gold refining and cocoa processing to strengthen economic resilience.
Analysts warn that much of the recent strength in the cedi is tied to commodity windfalls, particularly gold. A fall in gold or cocoa prices could expose the currency to renewed pressure. At the current pace of foreign exchange interventions, forex sales could reach 5.6 billion dollars by year end, nearly double the 2024 figure, raising questions about the sustainability of Ghana’s currency support strategy.
The banking sector has remained strong, with improvements recorded in solvency, asset quality and profitability. The Non Performing Loans ratio dropped from 22.7 percent in October 2024 to 19.5 percent in October 2025, according to BoG data. Governor Asiama noted that recapitalization of a few undercapitalized banks and the full rollout of new regulatory guidelines would further strengthen the sector.
On monetary policy, the BoG cut its Monetary Policy Rate by 350 basis points to 18 percent in November 2025, aligning with ongoing efforts to drive down inflation. Headline inflation fell from 23.5 percent in January to 8.0 percent in October, the first time both food and non food inflation hit single digits since July 2021.
Dr. Asiama expressed his goal of reducing lending rates to about 10 percent by the end of his tenure. Current average lending rates stand at 21 percent, a significant improvement from previous levels of around 32 percent. As Treasury bill rates continue to decline, banks are expected to offer more competitive credit to businesses and households.
The Governor projected continued stable inflation around the target and well into the first half of 2026, with risks to inflation having moderated significantly. This creates scope to ease policy without undermining price stability, according to the central bank’s assessment.