Forex market intervention for 2025 Q1 has not depleted our reserves – BoG

BoG Affirms Q1 Forex Market Intervention Has Not Depleted Reserves
By Top Knowledge Media – July 15, 2025

The Bank of Ghana (BoG) has assured the public that its substantial intervention in the foreign exchange market during the first quarter of 2025 has not eroded the country’s international reserves. Instead, the central bank's reserves have risen.

According to BoG statements, the bank added US$1.6 billion to its gross reserves during the first half of 2025—far exceeding the US$493 million mid-year target set by the IMF. This brings total reserves to approximately US$11 billion, equivalent to 4.8 months of import cover 

???? Q1 2025 Forex Intervention Breakdown

• The IMF Staff Report indicates BoG sold US$1.4 billion in the Q1 FX market to stabilize the cedi 

• This level of intervention marks a sharp increase compared to just US$1 billion for the entirety of 2023, and follows US$3 billion in sales in 2024 (including US$2 billion in Q4 ahead of elections)

• The BoG attributed these FX sales to the redistribution of forex received under its Gold-for-Reserve Programme—a mechanism that centralizes gold-purchase proceeds, bolstering market liquidity.

???? Why This Matters

• Despite heavy interventions, the BoG emphasizes that these are recycled inflows from its gold initiative—not losses—ensuring that reserves remain strong

• The cedi has appreciated significantly—around 60% from November 2024 to May 2025—suggesting that the interventions are contributing to currency stability 

• IMF analysts commend Ghana for disciplined fiscal and monetary policy but recommend a formal intervention framework and greater exchange rate flexibility to enhance transparency and readiness 

???? Outlook and Risks

• The BoG warns that sustained reserves depend on continued inflows—primarily from gold exports, cocoa earnings, and diaspora remittances 

• The IMF cautions against overreliance on commodity windfalls, noting that any drop in gold or cocoa prices could heighten vulnerability

In Summary:
The Bank of Ghana’s aggressive FX interventions in early 2025 have successfully supported the cedi and fortified reserves. With reserves now at a healthy US$11 billion, BoG emphasizes that its actions are sustainable—so long as capital inflows hold steady. Still, experts urge for clearer frameworks and adaptability to maintain stability.

Stay tuned to Top Knowledge Media for ongoing updates on Ghana’s macroeconomic policies and financial sector performance.