Governor of the Bank of Ghana, Dr Johnson Asiama Pandit, has dismissed claims that the central bank is depleting the country’s foreign reserves through market interventions.
Speaking in an interview with the IMF at the ongoing IMF/World Bank Spring Meetings in Washington DC on October 16, he insisted that the Bank of Ghana is rebuilding its reserves, not burning them.
“Yes, there were allegations about whether we’re intervening in the market. But that was not exactly the case,” he said.
He explained that what appeared to be heavy central bank activity between the second and third quarters of 2025 was mainly due to “lumpy payments” that had to be cleared during that period.
“Between the second and the third quarter, we had to do a number of lumpy payments. There were all these large arrears in payments to some of the IPPs. These were billions of US dollars,” Dr Pandit explained.
He added that the Bank of Ghana also had to meet obligations to some domestic debt exchange bondholders who opted to exit their investments when the cedi appreciated.
“Some bondholders felt that, because the currency had appreciated, it was the right time to take up their investment. We had to allow them to go,” he said. “So we did a lot of lumpy payments between July and August.”
According to him, those payments temporarily created the impression that the Bank was aggressively intervening in the market, but that was not the case.
He explained that the central bank had to step in to stabilise the market during a period when remittance inflows — which usually inject over US$6 billion annually into the economy — declined.
“Immediately after the currency appreciated, we saw a decline in remittance inflows,” he noted. “So, in the mix of that, the central bank needed to step in to meet all those lumpy payments. The interbank FX market had dried up during that time, and so the central bank needed to provide that support.”
Dr. Pandit said the situation has now improved significantly.
“The Interbank FX market has come back,” he said. “We have written to the mining firms, for example, to take all their inflows through the commercial banks. So we are beginning to see some pickup in activity in the interbank FX market.”
He clarified that with increased inflows through the commercial banks, the central bank’s role in the market will reduce while reserves are rebuilt.
“To give you an example, as of yesterday, we had committed to make available $150 million. This morning, when I checked, the market had picked up only $90 million — so $60 million automatically goes into our reserves,” he said.
“Same thing Tuesday — we made available $150 million, the market picked up less than half that. So automatically it goes into our reserves,” Dr Pandit explained.
He stressed that the Bank of Ghana’s interventions are carefully calibrated to smooth out volatility, not to deplete reserves.
“We do not over-support the markets at all. All we seek to do is to limit the volatilities in the markets, to ensure that we have that smooth dynamics in the market,” he said.
Dr. Pandit concluded that the central bank remains committed to a stable and transparent foreign exchange framework that balances market needs with reserve accumulation.
About the Author
