Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama Pandit, has refuted claims that the central bank is depleting the country’s foreign reserves through excessive market interventions. Speaking in an interview with the IMF at the ongoing IMF/World Bank Spring Meetings in Washington, D.C., on October 16, Dr. Pandit maintained that the Bank is actively rebuilding its reserves, not “burning” them.
“Yes, there were concerns about whether we were intervening in the market — but that was not exactly the case,” he clarified.
He explained that what seemed like heavy central bank activity between the second and third quarters of 2025 was mainly the result of “lumpy payments” — large, one-off transactions that needed to be settled during that period.
“Between the second and third quarters, we had to clear a number of big payments, including arrears owed to some Independent Power Producers (IPPs) running into billions of U.S. dollars,” Dr. Pandit said. “We also had to meet obligations to certain domestic debt exchange bondholders who chose to exit their investments after the cedi appreciated.”
He noted that these transactions created the impression that the central bank was aggressively intervening in the foreign exchange market, even though the actions were necessary to meet genuine payment obligations.
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Dr. Pandit further revealed that the Bank had to step in at a time when remittance inflows — which typically contribute more than US$6 billion annually — had declined following the cedi’s appreciation. “Immediately after the currency strengthened, we saw a drop in remittance inflows,” he said. “The interbank FX market also dried up during that period, so the Bank had to provide liquidity support.”
According to him, the situation has since improved. “The interbank FX market has bounced back,” he said. “We’ve directed mining firms to channel all their foreign inflows through commercial banks, and that has helped boost market activity.”
Dr. Pandit added that with more inflows going through commercial banks, the BoG’s direct market participation will continue to decline, allowing reserves to grow.
“To give you an example,” he noted, “as of yesterday, we committed to make available $150 million — but the market took up only $90 million. The remaining $60 million automatically adds to our reserves. The same thing happened on Tuesday, when less than half of the $150 million offered was taken up.”
He emphasised that the BoG’s market operations are carefully managed to maintain stability rather than exhaust reserves.
“We don’t oversupport the market,” Dr. Pandit stressed. “Our goal is to smooth out volatility and maintain orderly market conditions.”
He concluded that the central bank remains focused on a stable and transparent foreign exchange framework that balances market liquidity with the long-term objective of rebuilding Ghana’s reserves.
Story By: Afia Ohenewaa Akyerem