Ghana’s Reserves Hit $10.7 Billion, Boosting Cedi and Investor Confidence
Ghana’s external position has seen a remarkable turnaround, with Gross International Reserves (GIR) rising to $10.672 billion by end-April 2025, according to the Bank of Ghana’s latest Summary of Economic and Financial Data. This marks a steady increase from $9.98 billion in December 2024 and provides cover for 4.7 months of imports—up from 4.0 months just four months ago.
The central bank attributes the improvement to solid export performance, prudent reserve management, and tempered import growth. “This level of reserves strengthens our external sector stability and reflects the impact of disciplined macroeconomic management and favorable commodity export performance,” the Bank of Ghana noted.
A key contributor to the strong reserve build-up is Ghana’s Heritage and Stabilization Fund, which reached $1.401 billion in April 2025. The fund’s growth underlines the country’s improved sovereign wealth position and its capacity to weather external shocks while supporting fiscal operations.
The gains in reserves have translated into significant benefits for the Ghanaian cedi. The local currency appreciated from GH₵15.53 per US dollar in March to GH₵14.15 in April, and further to GH₵11.85 in May—representing a 24.1% gain year-to-date. Analysts point to increased reserves, a strong trade surplus, and sustained international support as key drivers behind the cedi’s rally.
The trade balance as of April recorded a surplus of $4.14 billion, or 4.7% of GDP, fueled by strong gold and cocoa exports, which generated $5.24 billion and $1.84 billion respectively.
The central bank reiterated its commitment to a flexible exchange rate regime backed by strong economic fundamentals. “Continued reserve accumulation provides critical support for exchange rate stability and investor confidence,” it said, pledging to build further on current buffers through gold purchase programs and strategic asset diversification. The non-encumbered portion of reserves currently stands at $8.43 billion.
