We’re Covered, Reserves Enough to Handle External Pressures — BoG

Ghana‘s international reserves remain strong and are well-positioned to cushion the economy against external shocks, according to Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama.

Speaking after the recent Monetary Policy Committee (MPC) meeting, Dr. Asiama revealed that Ghana’s reserves currently stand at $10.6 billion, covering roughly 4.7 months of imports. While the central bank doesn’t have a fixed upper target for reserves, it maintains a firm minimum threshold to ensure economic stability.

He explained that although no upper limit is set, the Bank of Ghana insists on a minimum reserve level equivalent to three months of import cover to safeguard against external risks. “There is no upper limit target for now, but we do have what you can call a lower limit of three months of import cover,” he said. “What we have now is adequate and ensures our external resilience.”

When asked if the reserves are enough to meet future debt obligations, Dr. Asiama confidently assured that the Bank has planned accordingly. “We have everything programmed. What we have now is pretty adequate,” he stated.

Addressing widespread speculation that the cedi’s recent strength was being artificially supported by the depletion of reserves, the Governor dismissed such claims. He attributed the currency’s sustained appreciation to a combination of solid reserves, effective monetary policies, and growing market confidence shaped by coordinated fiscal and monetary efforts.

He noted, “What we are witnessing with the Ghana cedi is influenced by strong reserves, robust monetary policy measures, and favourable market sentiments based on actions taken on both the monetary and fiscal fronts.” Market sentiment, he added, is playing an increasingly important role in the currency’s performance. “We believe that market sentiments are now playing a significant role in the cedi’s sustained appreciation.”

Despite the cedi’s 24.1% gain against the US dollar this year, some have questioned why consumer prices have yet to drop correspondingly. Dr. Asiama urged patience, explaining that competitive market forces are expected to gradually bring prices down in the coming weeks. “It’s just a matter of time. Competition may play a significant role in forcing traders to respond to current market developments,” he said.

On inflation, the Bank of Ghana aims to bring the rate down to 12% by the end of 2025. The Governor expressed confidence that this target is achievable despite ongoing external challenges.

“I don’t think the end-of-year target is ambitious, looking at the policy measures we have undertaken,” he said. Dr. Asiama is optimistic that inflation will return to single digits by the first quarter of 2026. “Looking at current developments and the policy measures in place, we should be able to manage any external developments that could reverse the current disinflation trend,” he added.