Forex reserves hit $11 bn
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has dismissed concerns that its aggressive Foreign Exchange (Forex) interventions in the first quarter of 2025 drained the country’s reserves, stating that its reserve buildup remains strong and on target.
According to the central bank, the BoG has added USD 1.6 billion to its gross reserves in the first half of 2025, more than triple the International Monetary Fund’s (IMF) target of USD 493 million for the same period.
The BoG’s total reserves now stand at USD 11 billion, equivalent to 4.8 months of import cover, signaling a healthy external position despite large-scale forex market activity.
In its Fourth Review Report on Ghana’s USD 3 billion Extended Credit Facility program, the IMF noted that the BoG sold USD 1.4 billion in the forex market in the first quarter of 2025, surpassing its entire 2023 interventions of USD 1 billion.
The IMF attributed the cedi’s 60 percent appreciation against the US dollar between November 2024 and May 2025 in part to these interventions. It also reported that forex interventions reached USD 3 billion in 2024, with USD 2 billion sold in the fourth quarter alone, raising concerns about reserve sustainability.
The Bank of Ghana maintains that the forex sold in the first quarter of 2025 came from proceeds of its Gold for Reserve Program, and therefore did not reduce its net reserve buildup.
BoG data confirms that USD 1.458 billion was earned through the program in the first quarter, of which USD 1.442 billion was sold to meet demand and stabilize the cedi.
Officials noted that while the IMF report accurately captured the scale of intervention, it did not account for the origin of the funds, which were clarified after the report’s submission.
The central bank insists that its actions have not undermined reserves but instead helped restore confidence in the forex market, supported the cedi, and ensured liquidity for imports and private sector demand.
“We are meeting and exceeding our reserve targets. Our forex strategy is deliberate and does not compromise macroeconomic stability,” a senior BoG official stated.
