Ghana: BoG Surpasses IMF Gir Target As Reserves Hit $11.4 Billion

The Bank of Ghana (BoG) has exceeded the International Monetary Fund (IMF) end-of-year Gross International Reserve (GIR) benchmark for 2025, Governor Dr. Pandit Johnson Asiama has announced. The IMF had set the country's GIR target at $8.366 billion, equivalent to 3.3 months of imports, but Ghana's current reserves now stand at $11.4 billion, covering more than 4.8 months of imports.

Dr. Asiama disclosed the figures during a press briefing following the 127th regular meeting of BoG's Monetary Policy Committee (MPC). "We have already achieved what under the Fund programme we should have by the end of December 2025. We are ahead of the curve," he stated.

The Governor highlighted that cocoa inflows had played a significant role in boosting the reserves, with cocoa exports generating about $2.7 billion. Strong remittances have further supported currency stability and economic gains. "Reserve accumulation remains central to the stability programme," Dr. Asiama emphasised.

Regarding monetary policy, the Governor noted that the MPC's recent 350-basis-point policy rate cut aligns with ongoing disinflation efforts. He acknowledged commodity price risks but pointed out that BoG's deliberate reserve-building strategy helps cushion the economy.

Dr. Asiama expressed his goal of reducing lending rates to about 10% by the end of his tenure. Current average lending rates are at 21%, a marked improvement from previous levels of around 32%. As Treasury bill rates continue to fall, banks are expected to offer more competitive credit.

The Governor also stressed the importance of structural reforms to reduce Ghana's vulnerability to external shocks due to reliance on primary commodity exports like oil, gold, and cocoa. He encouraged value addition in sectors such as gold refining and cocoa processing to enhance economic stability.

On the Gold Purchase Programme, Dr. Asiama clarified that it serves as a reserve management tool rather than a financing initiative. Regarding the recapitalisation of universal banks, he assured that BoG would continue monitoring banks to ensure they meet capital requirements by the December deadline.

Read the original article on Ghanaian Times.