Ghana’s foreign exchange reserves have seen a significant resurgence, with the country’s import cover reaching 4.8 months by June 2025, the highest level recorded in recent years.
The Bank of Ghana disclosed the data, highlighting the strengthening of the country’s external position amid ongoing economic reforms.
Import cover measures how long a country’s foreign reserves can sustain its import needs without fresh currency inflows, serving as a key indicator of economic resilience for trade-dependent nations.
Analysts view the recent improvement as a positive development for Ghana’s macroeconomic stability.
Gross International Reserves climbed to $11.12 billion by mid-2025, up sharply from $6.86 billion a year earlier. When adjusted for funds allocated to debt servicing, usable reserves stood at $8.86 billion — equivalent to 3.8 months of effective import cover.
This compares favorably to 2.6 months in June 2024 and 4.3 months by the end of that year, signaling steady improvement in the country’s reserve position.
“The increase in reserves enhances Ghana’s ability to finance essential imports such as petroleum, food supplies, and pharmaceuticals,” noted the Bank of Ghana in its latest monetary policy report.
Economists have long warned that falling below safe import cover thresholds tends to trigger adverse outcomes, including rapid cedi depreciation, inflation surges, and disruptions in the supply of essential goods.
Ghana faced such challenges during the 2022–2023 reserve crisis, which saw severe pressure on its local currency and soaring inflation.
The current buffer helps shield the economy from global shocks, such as oil price volatility and delays in external financing. However, experts caution that maintaining this position will require strategic economic management, as reserve accumulation remains heavily reliant on gold exports, favorable trade balances, and inflows from debt restructuring arrangements.
Although the rebound provides Ghana with valuable breathing space, sustained stability will depend on preserving export competitiveness and enforcing disciplined fiscal measures under President John Mahama’s administration.
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