Ghana’s central bank governor has pushed back against the idea that the country must choose between protecting its foreign exchange reserves and channelling resources into domestic industrial growth, arguing instead that the two objectives depend on each other.
Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), made the case at the Ghana Export-Import Bank (GEXIM) Fireside Chat in Accra, framing record-level reserves not as idle buffers but as the foundation on which affordable credit and productive investment can be built.
Ghana closed 2025 with gross international reserves of US$13.8 billion, the highest figure in the country’s history, equivalent to approximately 5.7 months of import cover. The previous year’s figure stood at US$8.9 billion. The improvement was driven substantially by the Domestic Gold Purchase Programme (DGPP), which processed more than 110 tonnes of gold valued at roughly US$11.4 billion in foreign exchange earnings. The programme forms part of the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), which targets 15 months of import cover by 2028.
As the reserves figure drew attention, questions emerged about whether those resources could be better deployed to support local industry. Dr. Asiama rejected the premise.
“That is exactly why lending rates have to come down. Because the way you build industry is by making it affordable to invest,” he said.
His argument rests on the relationship between reserves, exchange rate stability, and the cost of borrowing. When reserves are strong, the cedi holds steady, risk premiums fall, and banks can price credit at lower rates. When reserves are thin, external shocks force tighter monetary policy, which raises borrowing costs and makes industrial projects unviable.
The Governor cited the decline in average lending rates, from above 30 percent to below 20 percent during 2025, as evidence that the strategy is working. He also disclosed that the BoG absorbed approximately GH¢17 billion in excess liquidity last year while simultaneously reducing the Monetary Policy Rate (MPR) from 15.5 percent to 14 percent, a dual approach aimed at stabilising conditions without undermining the easing cycle.
On the question of imports, Dr. Asiama took a nuanced position. He said imports are not inherently a sign of economic failure, and that the relevant question is whether their composition is shifting toward capital goods and specialised inputs that strengthen long-term production.
He offered reassurance on Ghana’s overall position. “Our reserves levels are comfortable. The contingency measures are in place,” he told the gathering.
The Governor’s remarks signal that the BoG sees its current strategy, accumulating external buffers while easing credit conditions, as a single, integrated policy direction rather than a set of competing priorities.
