Ghana’s foreign reserves have surpassed expectations, reaching $10.672 billion by end-April 2025, far exceeding the targets set under the IMF’s Extended Credit Facility (ECF) programme, according to the Fund’s Executive Board. This is contained in a statement following the completion of the fourth review of Ghana’s 36-month Extended Credit Facility Arrangement, allowing the immediate disbursement of about US$367 million (SDR 267.5 million).
The surge in reserves marks a steady climb from $9.98 billion in December 2024 and reflects strong external sector performance, with exports particularly gold, and to a lesser extent oil—as well as rising remittances fueling the build-up.
“This level of reserves strengthens our external sector stability and reflects the impact of disciplined macroeconomic management and favorable commodity export performance,” the Bank of Ghana noted in an earlier statement.
Ghana’s Gross International Reserves (GIR) now provide 4.7 months of import cover, up from 4.0 months at the end of 2024, underscoring growing resilience against external shocks.
Cedi Appreciation Signals Market Confidence
The improved reserve position translated into significant gains for the Ghanaian cedi, which appreciated from GH₵15.53 per dollar in March to GH₵14.15 in April, and further to GH₵11.85 in May and currently hovering around GH₵10.35.
Currency analysts attributed the cedi’s rally to the strong reserve buffer, improved investor sentiment, and lower foreign exchange demand due to moderate import growth and better trade balances.
Sovereign Wealth Fund Builds Cushion
Contributing to Ghana’s stronger external position is the continued buildup of the Heritage and Stabilization Fund, which reached $1.401 billion by April 2025. This growth in sovereign wealth assets is seen as a key strategic buffer, supporting fiscal stability and enabling the government to better absorb future external shocks.
The central bank credits the progress to resilient export earnings, prudent reserve management, and a macroeconomic policy framework focused on stability and sustainability.
The IMF has also recognized Ghana’s outperformance in reserve accumulation, citing it as a crucial indicator of Ghana’s commitment to reform and macroeconomic recovery under the ongoing $3 billion IMF programme.
