BoG Governor says building buffers and lowering credit costs go together
Dr. Johnson Asiama, Governor of the Bank of Ghana, addressed the issue of prioritizing external buffers versus domestic production at the Ghana Exim Fireside Chat in Accra in March 2026, offering a perspective that reframes the debate. He stated, "That is exactly why lending rates have to come down. Because the way you build industry is by making it affordable to invest." He noted that in 2025, lending rates reduced from above 30% to below 20%.
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 improvement was largely driven by the Domestic Gold Purchase Programme, which processed more than 110 tonnes of gold, valued at approximately US$11.4 billion in foreign exchange, over the period. The Ghana Accelerated National Reserve Accumulation Policy targets 15 months of import cover by 2028. Dr. Asiama said the debate on reserves and industrial development should be seen as interconnected. He stressed that reserves should be viewed as part of the infrastructure that supports sustained industrial development rather than as an alternative to it.
Dr. Asiama said that in 2025, the Bank focused on both building reserves and reducing lending rates, describing them as complementary goals essential to long-term economic transformation. He said, "Our reserve levels are comfortable. The contingency measures are in place."
Quick Summary
BoG Governor Dr. Asiama engaged stakeholders at an Exim Fireside Chat in Accra to discuss Ghana's record foreign reserves. He addressed the debate on prioritizing external buffers versus investing in domestic production - hinting at how the two might be linked.
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