Lawyer Noah Tietaah Yakubu

BANK OF GHANA TO INJECT USD 1.15BN INTO FOREX MARKET TO STABILISE THE CEDI

Institute of Political Studies, IPS-Ghana Perspective

The Bank of Ghana’s announcement to inject USD 1.15 billion for forex market intermediation sets it on a direct collision course with Ghana’s major Economic partners, the International Monetary Fund (IMF) and the World Bank, who have repeatedly urged the Bank of Ghana to avoid excessive foreign exchange (FX) interventions.

This latest announcement by the Bank of Ghana brings the Central Banks’s total direct foreign exchange intervention for the 2025 fiscal year to about USD 4.55 billion, following a USD 1.4 billion injection in Q1 2025 and over USD 2 billion in Q2 2025.

While aimed at stabilizing the domestic currency, this excessive forex market intervention flies in the face of explicit advice from the IMF and World Bank who advocate for a market led approach to allow for greater exchange rate flexibility through the forces of demand and supply.

The IMF and World Bank have consistently argued that large scale forex interventions are unsustainable and counter productive, as such actions could disrupt market balance and weaken economic resilience.

After Bank of Ghana made great progress between March 2024 and June 2025 on reserve accumulation, Ghana’s gross international reserves buffers plummeted the first time in fifteen (15) months decreasing from USD 11.1 billion in June 2025 to USD 10.7 in September 2025 with international reserve coverage ratio also decreasing from 4.8 months imports cover to 4.5 months imports cover.

The decline in Ghana’s Gross International Reserves from USD 11.1billion in June 2025 to USD 10.7 billion at the end of September 2025 is a clear indicator that the Bank of Ghana’s uncontrolled and excessive foreign exchange market intermediation is depleting the country’s already limited foreign exchange reserves which are crucial for covering essential imports and serving as a suffer against external shocks.

The continuous and excessive forex market intervention threatens to reverse the hard won gains in reserve accumulation, undermining investor confidence and weakening economic resilience.

Recommendation

1. Adequate international reserve buffers are especially important in the current global and domestic macroeconomic environment. A healthy reserve position can help an economy recover more quickly from an unexpected shock, and so boosts overall confidence. In addition, international reserves can be used to limit the impact of short-term exchange-rate volatility, which can be key in countries with shallow financial markets and less-well anchored inflation expectations.

2. The Bank of Ghana should prioritize reserve building measures, undertake structural reforms and ensure greater investment in real sector growth. These when implemented successfully will enhance Ghana's economic resilience, reduce external imbalances and ensure a sustained long-run foreign exchange stability, and lay a solid foundation for sustainable long-term growth and macroeconomic stability.

Conclusion

Going forward, the Bank of Ghana should maintain a clear transparent reserve accumulation strategy aligned with macroeconomic stability objectives, and complement this with sound monetary stabilization tools to reinforce the broader economic framework.

While the Big Push programme is a laudable policy which seeks to improve the infrastructure of our Country,the governments attempt to dedicate all oil revenues and mineral royalties to the Programme would spell doom for the country in the not too distant future.

Petroleum revenue from the Petroleum Holding Fund is saved in the Stabilization fund to cushion public expenditure in periods of unanticipated petroleum revenue shortfalls. And also in the heritage fund to support the development of future generations when our petroleum reserves have depleted.

Dedicating all oil revenues and mineral royalties to the Big Push Programme simply puts the country in a situation of spending all that’s left of our country’s future today. When we need Petroleum revenue to stabilize our economy,we will be found wanting as a country. Also,spending all extractive revenues today will deny future generations the benefit of these resources.

Government should thus find an alternative source of funding for the BigPush Programme such as Public-Private Partnerships(PPP) instead of relying on Petroleum Revenue which obviously has its designated purposes.

John Mahama in 2024 promised to complete the boisterous Agenda 111 hospitals started by the NPP Government. While the construction of CHPS Compounds is equally important, it brings to fore the question of whether his government still has plans to continue the Agenda 111 hospitals. Mind you,He has already called for PPP for the financing of the completion of these hospitals. If there’s money to construct 600 CHPS Compounds,why doesn’t this government put in such monies to the completion of the Agenda 111 hospitals?

It is in the best interest of the New Patriotic Party to choose a flagbearer who has the temperament that appeals to floating voters. Dr.Bawumia remains that leader.

Go for it and remember never to give up when the going gets tough. Have a blessed week.

Had the opportunity to share my thoughts on the effects of the 10% Tariff imposition on Ghana by the US and how Ghana can navigate its way through the situation.

|The effects of the US 10% Tariff imposition on Ghana cannot be overemphasized. The 10% tariff imposition on Ghana will cause a shortfall in demand for Ghanaian products in America. Ghanaian products in American markets will become expensive as compared to same products from countries that are not affected by the tariff imposition.

A drop in demand of Ghanaian products will affect our Forex earnings from these products. Ghana will lose a great deal of its Forex earnings due to the imposition.This means that our Forex earnings from America will drop.

This will definitely also result in a drop in jobs especially jobs that are dependent on exports from America.

Ghana can navigate its way through the situation by leveraging on the AfCFTA to promote trade among other African Countries. We haven’t had much of a benefit from AfCFTA. This therefore presents a golden opportunity for us.

Ghana can open up to exporting to other Countries where there are no tariff impositions like China,UK,etc.

Lastly, the government should as well pursue high level bilateral talks with the US government to grant us some exemption considering the long standing friendly relations the two countries have enjoyed in the past|

Alhassan S. Tampuli sets the records straight on Dumsor.

I think who becomes the next flagbearer of the NPP should be the least of our worries. The Spirit of the NPP ordinarily moves towards a certain direction through delegates irrespective of whether the electoral college is expanded or not. Those voting will definitely go a certain direction when that time comes.

What the focus of the party especially young people of the party is to be actively involved in holding the NDC Government accountable to the promises they gave the Ghanaian people.

In recent times,we have seen some people chide the NPP for not given opportunities to young people,which I disagree. But I want to say that, a cursory look at the young people who have been appointed in this government,most of them played active roles when the NDC lost power in 2016. They didn’t abandon the party. They stayed with the party and worked hard during those early times of the NDC in opposition ,coupled with their active involvement in the 2024 campaign. This is not to say the young people of the NPP did not work hard during the 2024 campaign. Far from that. But to say,this is even the time to make a case for young people in the next NPP Government.

Every political party has a generation which plays an active role in Government. I want to believe this is the time of the young people of the NDC and that is why we are seeing youthful appointments being made. As young people of the NPP, the next generation can be ours. Even if it is not ours,this is the time to seize that generation with our active involvement in these early days and beyond to hold the NDC government accountable.

Dr. Bawumia on recent mishappenings in Ghana 🇬🇭

The sun does not forget a village just because it is small. When it rises,it doesn't say I will only give light to good people and withhold it for bad people. It shines on everyone.