Reserves Will Not Be Depleted Despite Heavy Forex Interventions – BoG Clarifies IMF Report

The Bank of Ghana (BoG) has affirmed that its active participation in the foreign exchange (forex) market during the first quarter of 2025 has not weakened its international reserves, despite concerns raised in the latest International Monetary Fund (IMF) Staff Report.

The central bank added US$1.6 billion to its reserves during the first six months of the year, comfortably surpassing the IMF’s reserve build-up target of US$493 million for the period. This brings the BoG’s gross international reserves to US$11 billion, equivalent to 4.8 months of import cover — a development the Bank considers a strong signal of macroeconomic stability.

The IMF, in its Staff Report submitted to its Board as part of the fourth review under Ghana’s programme, had noted that the BoG’s footprint in the FX market was increasing significantly. The Fund reported that the BoG sold US$1.4 billion in foreign exchange during the first quarter of 2025 alone, an amount that exceeded the central bank’s entire 2023 forex sales, which stood at US$1 billion.

“In 2024, interventions rose further to $3 billion with $2 billion sold in the fourth quarter alone, ahead of the general election,” the IMF report stated. The Fund also linked BoG’s forex interventions to the cedi’s sharp rally — the Ghana cedi appreciated by about 60 percent against the US dollar between November 2024 and May 2025.

Despite the figures presented in the report, the Bank of Ghana has clarified that the IMF Staff Report did not fully reflect the recycled nature of the resources it used in these transactions. According to the BoG, the forex sold on the market came primarily from the Gold-for-Reserve Programme, under which the central bank earned US$1.458 billion in the first quarter of 2025 and subsequently recycled US$1.442 billion back into the market.

“The Bank wishes to emphasize that the resources utilized were not drawn down from existing reserves but were generated through the Gold-for-Reserve initiative,” a BoG source noted. “Thus, the reserve accumulation target was not compromised.”

While the BoG does not dispute the data presented in the IMF Staff Report, it maintains that the characterization of the FX interventions did not capture the full context behind the transactions. Officials argue that the interventions were strategic, well-managed, and non-depletive, given that the funds were internally recycled and not sourced from core reserves.

The central bank’s statement is seen as part of efforts to reassure the public, investors, and development partners of its commitment to prudent reserve management, especially at a time when Ghana is navigating key benchmarks under the IMF-supported programme.