Ghana’s gross international reserves fell to US$10.7 billion at the end of August 2025, equivalent to 4.5 months of import cover, down from US$11.12 billion (4.8 months) in June.
The decline of more than US$400 million highlights renewed pressure on the country’s external buffers.
The reserves drawdown coincided with fresh volatility in the currency market. After holding firm through much of the first half of the year, the Ghana cedi has depreciated by about 15% since the end of June, though it remains 21% stronger year-to-date.
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Market participants cite reduced central bank intervention and steady import demand as key drivers of the recent weakness.
Bank of Ghana Governor Dr. Johnson Asiama has meanwhile directed mining firms to channel their foreign exchange inflows through commercial banks rather than the central bank. The decision, which reverses a 2022 directive, is aimed at improving transparency and deepening liquidity on the interbank market. Analysts say the measure could ease some of the burden on reserves by increasing supply in the formal market and reducing reliance on direct central bank interventions.
The erosion of reserves is nevertheless likely to sharpen investor focus on Ghana’s external financing outlook. While reserves remain relatively comfortable by historic standards, the pace of decline raises questions about how much room the Bank of Ghana has to counter exchange-rate pressures. The trajectory of the cedi and the scale of import cover losses in the next quarter will be closely watched as signals of whether the August dip proves temporary or marks the start of a more persistent trend.
Ceditalk