Ghana recorded a slightly weakened external buffer in July 2025, as the country’s Gross International Reserves (GIR) dipped from US$11.23 billion in June to US$10.83 billion in July.
This was revealed by the Bank of Ghana’s latest Summary of Economic and Financial Data.
An analysis of the data reveals that between June and July 2025, the country’s Gross International Reserves decreased by $573 million.
Although there was a marginal increase in the gross reserves from US$10.55 billion in July to US$10.73 billion in August, the increase could not change the months of import cover, as it stayed the same at 4.5 months.
The drop in reserves translated into a fall in import cover, from 4.8 months in June to 4.5 months in July, raising concerns about Ghana’s ability to sustain external shocks such as commodity price swings or currency pressures.
Import cover measures how many months of imports a country can finance if foreign exchange inflows dry up, making it a key indicator of external stability.
The slip, although modest, underscores the tight balancing act the country faces as it tries to stabilize the cedi while meeting its external obligations. The fall in reserves often reflects higher foreign exchange outflows than inflows, possibly from debt servicing, import payments, or interventions by the central bank to support the cedi.
While Ghana’s reserves remain above the critical three-month threshold used by international benchmarks, the trend must be closely watched.
Sustained declines could weigh on investor confidence, limit the central bank’s ability to defend the currency, and increase inflationary pressures through a weaker cedi.
A weaker reserve position could translate into higher fuel and food prices, tighter access to foreign exchange for importers, and increased cost-of-living pressures for ordinary Ghanaians.
