Accra, March 30, – Ghana’s record foreign reserves have sparked debate over whether resources should focus on external buffers or domestic industrial investment.
At the Ghana Exim Fireside Chat in Accra, Dr. Johnson Asiama, Governor of the Bank of Ghana, reframed the discussion, emphasizing that reserve accumulation and domestic investment are complementary rather than competing goals.
Ghana ended 2025 with US$13.8 billion in gross international reserves, equivalent to about 5.7 months of import cover, up from US$8.9 billion the previous year. The increase was largely driven by the Domestic Gold Purchase Programme, which processed over 110 tonnes of gold valued at approximately US$11.4 billion in foreign exchange.
Dr. Asiama explained that reducing lending rates is the key mechanism for building domestic productive capacity. “The way you build industry is by making it affordable to invest,” he said, noting that industrial projects are often unviable when borrowing costs exceed 30 per cent.
He highlighted that in 2025, lending rates fell from above 30 per cent to below 20 per cent, creating more favourable conditions for investment.
The Governor also stressed that strong reserves support exchange rate stability, reduce risk premiums, and ultimately lower borrowing costs, which encourages investment. Over time, this helps expand domestic production and reduce import dependence.
Dr. Asiama noted that imports are a normal part of global trade but emphasized the importance of shifting towards capital goods and specialized inputs that strengthen industrial capacity. Weak reserves, by contrast, expose economies to external shocks and force higher interest rates, limiting investment.
“Our reserves levels are comfortable. The contingency measures are in place,” he said, reaffirming that reserves and affordable credit together form the infrastructure for sustained industrial development.
GHBUSS
March 30, 2026
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