Bank of Ghana connects strong reserves to lower lending rates, supports investment

Ghana's Bank of Ghana Governor, Dr. Johnson Asiama, explained that building strong foreign reserves and lowering the cost of borrowing for businesses are connected. He spoke at a Ghana Exim event in March 2026.

Ghana ended 2025 with US$13.8 billion in foreign currency reserves. This is the highest level ever. It covers about 5.7 months of imports. This is more than the US$8.9 billion from the year before. The Domestic Gold Purchase Programme helped greatly, adding about US$11.4 billion in foreign money from more than 110 tonnes of gold.

Asiama said the main goal is not just to choose between saving money or investing. It is about creating conditions that make investment possible. He stressed that lending interest rates must fall. He noted that when rates are above 30%, most business investments are not profitable. He said that rates dropping from over 30% to below 20% in 2025 was important.

The Governor said that high reserves help keep the Ghana Cedi stable against other currencies. This makes it less risky to invest and lowers borrowing costs. These lower costs then lead to more investment. More investment helps Ghana make more goods locally and rely less on imports in the long run. He warned that low reserves make an economy weak against outside problems, often forcing higher interest rates.

Asiama believes that reserves are part of the basic structure needed to support steady industrial growth. He described both building reserves and cutting lending rates in 2025 as important goals for Ghana’s economy.