Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has dismissed reports suggesting that the central bank is depleting the country’s foreign reserves through market interventions.
Speaking in an interview with the IMF on the sidelines of the IMF/World Bank Spring Meetings in Washington, D.C., on October 16, Dr. Asiama insisted that the Bank of Ghana is rebuilding reserves, not burning them.
“Yes, there were allegations about whether we’re intervening in the market. But that was not exactly the case,” he stated.
Clarifying “Lumpy Payments” and Market Activity
Dr. Asiama explained that what appeared to be heavy central bank activity between the second and third quarters of 2025 was largely due to “lumpy payments”, large, one-off financial obligations that needed to be cleared.
“Between the second and the third quarter, we had to do a number of lumpy payments. There were large arrears in payments to some of the IPPs. These were billions of US dollars,” he said.
He added that the BoG also had to meet obligations to domestic debt exchange bondholders who opted to exit their investments following the appreciation of the cedi.
“Some bondholders felt that, because the currency had appreciated, it was the right time to take up their investment. We had to allow them to go,” he said.
FX Market Stabilisation and Reserve Rebuilding
Dr. Asiama noted that during this period, remittance inflows, which usually inject over US$6 billion annually into the economy, declined temporarily, creating a liquidity gap in the interbank foreign exchange (FX) market.
“Immediately after the currency appreciated, we saw a decline in remittance inflows,” he explained. “The interbank FX market had dried up during that time, and so the central bank needed to provide that support.”
However, he assured that the FX market has now stabilised, with increased inflows through commercial banks and improved market confidence.
“The interbank FX market has come back,” Dr. Asiama confirmed. “We have written to the mining firms to take all their inflows through the commercial banks. So we are beginning to see some pickup in activity.”
He revealed that with this improvement, the BoG’s direct market interventions are reducing, enabling faster reserve accumulation.
“For instance, we made available $150 million, but the market picked up only $90 million, so $60 million automatically goes into our reserves,” he said.
Maintaining Market Stability and Transparency
Dr. Asiama emphasized that the central bank’s interventions are measured and strategic, designed to smooth out market volatility, not to drain reserves.
“We do not over-support the markets at all. All we seek to do is to limit volatilities and ensure smooth market dynamics,” he said.
He concluded by reaffirming the Bank of Ghana’s commitment to a stable and transparent foreign exchange framework, balancing market support with long-term reserve accumulation.
