Ghana’s gross international reserves have risen significantly, providing a solid cushion to support the country’s imports and strengthen economic resilience, Bank of Ghana Governor Dr. Johnson Pandit Asiama said.
As of August 2025, reserves stood at US$10.7 billion, enough to cover about 4½ months of imports, highlighting the country’s improved external position.
Speaking at the 126th Monetary Policy Committee (MPC) meeting, Asiama attributed the stronger reserves to a combination of trade gains and inflows from key export sectors. He noted that robust foreign exchange receipts from gold and cocoa have underpinned these improvements.
“External buffers have strengthened. For the first eight months of the year, Ghana recorded a trade surplus of US$6.2 billion, underpinned by robust gold exports and higher cocoa receipts,” he said, stressing that this surplus has enhanced Ghana’s ability to weather external shocks amid ongoing global uncertainties.
The Governor linked the stronger reserves to stability within the banking sector, highlighting that reforms and recapitalisation efforts have reinforced resilience. He pointed to higher capital adequacy ratios and improved loan provisioning as key indicators of stability.
“The banking sector remains stable and improving, with the capital adequacy ratio (without reliefs) rising to 19.5 percent in July; while NPLs remain elevated at 21.7 percent, they drop to 8.4 percent when fully provisioned losses are excluded, underscoring ongoing resilience as recapitalisation and strict underwriting continue,” Asiama said. He explained that stricter lending standards and recapitalisation have strengthened balance sheets, supporting credit growth and overall financial stability.
On fiscal matters, the Governor highlighted that disciplined budget execution has contributed to macroeconomic stability. He said the government’s low fiscal deficit and progress on external debt restructuring have reduced financial pressures and reinforced investor confidence.
“Execution in the first half of 2025 signalled consolidation, The deficit on commitment basis was contained at 0.7 percent of GDP, below target, contributing, together with cedi strength and external restructuring to a decline in the public debt ratio by mid-year,” he said.
Dr. Asiama explained that these combined measures, strong reserves, fiscal discipline, and a resilient banking sector, have helped anchor expectations and support the broader economic recovery.
He reaffirmed the Bank of Ghana’s commitment to maintaining stability and growth. “Our commitment remains firm: maintain price stability, safeguard financial stability, and create the conditions for inclusive, sustainable growth,” he said, stressing that the central bank is ready to adjust policy as necessary to support Ghana’s recovery.
