Ghana’s Reserves Surge to $1.1 bn
The nation’s external sector received a major boost in April 2025 as the Bank of Ghana’s (BoG) net reserve assets surged by an impressive USD708.9 million, rising from USD391.1 million in April 2024 to USD1.1 billion, driven primarily by the central bank’s enhanced gold purchase program.
This dramatic growth in reserves has played a pivotal role in stabilizing the Ghana cedi, which has appreciated significantly against the U.S. dollar since the beginning of the year.
According to the BoG’s latest Monetary Policy Report, the central bank’s active acquisition of gold under its domestic gold purchase initiative not only bolstered gross international reserves but also reduced the demand for foreign exchange on the open market, thereby supporting the cedi’s appreciation.
Ghana Now a Net Lender to the World
The report revealed that combined surpluses in the current and capital accounts amounted to USD2.2 billion in the first quarter of 2025. This surplus position has placed Ghana as a net lender to the rest of the world, a major turnaround in the country’s external dynamics.
In parallel, the financial account recorded net acquisition of financial assets amounting to USD2.1 billion during the first quarter of 2025, a sharp increase compared to USD357.7 million recorded in the same period last year.
Much of this increase was reflected in “other investment,” which reached USD1.4 billion, largely attributed to rising currency and deposits in the nostro accounts of commercial banks, further improving liquidity in the financial system.
Strong International Reserves Position
As of the end of April 2025, Ghana’s Gross International Reserves (GIR) stood at USD10.7 billion, representing 4.7 months of import cover. This marks a notable improvement from USD9.0 billion in December 2024, which provided 4.0 months of import cover.
The strengthening of reserves and external accounts signals a resilient macroeconomic environment, contributing to declining inflation, improved investor sentiment, and a stronger currency.
Positive Outlook for External Sector
Looking ahead, the BoG has described the external sector outlook as positive, even as Ghana resumes external debt servicing under its newly restructured obligations.
“Increased production volumes of Ghana’s key export commodities, high commodity prices, and improved remittance flows will drive the strong external sector performance,” the report stated.
The central bank also noted that the operationalization of GoldBod, Ghana’s new gold trading and enforcement agency, will complement the Gold for Reserves program and enhance the bank’s ability to shore up reserves without putting pressure on the cedi.
With sustained reforms under the IMF supported program, the BoG believes investor confidence will remain strong, allowing for greater capital inflows and economic stability. This robust external performance places the nation in a stronger position as the IMF Board prepares to review the country’s program on July 7, 2025, with an expected USD 370 million disbursement pending.
