Economist Professor Godfred Bokpin has urged the Bank of Ghana to carefully manage its foreign exchange interventions as the country’s international reserves come under renewed pressure.
He said the decline in Ghana’s reserves does not warrant immediate panic, but warned that the shrinking buffer exposes vulnerabilities in the country’s external position, particularly given the economy’s heavy reliance on gold for foreign exchange earnings.
Latest Bank of Ghana data show that gross international reserves fell from US$12.94 billion in June to US$11.07 billion at the end of August 2026, reducing import cover to about 4.2 months.
Speaking to Citi Business, Professor Bokpin said the country still had sufficient reserves to withstand immediate pressure, but cautioned against excessive use of the reserves to stabilise the foreign exchange market.
“There should not be any panic necessarily, because we still have considerable level of reserves to be able to fight the pressure,” he said.
His comments come amid concerns over the sustainability of Ghana’s reserve position, despite strong export performance in the first half of the year. The Bank of Ghana has previously reported that the country’s strong external performance was largely supported by gold and cocoa export receipts.
Professor Bokpin said Ghana’s dependence on gold as a major source of foreign exchange creates an additional vulnerability, particularly when geopolitical developments affect gold shipments, prices or international trade.
He cited the conflict in the Middle East as one of the developments that could affect Ghana’s external position.
Pressure could intensify in final quarter
The economist also expects demand for foreign exchange to rise in the final quarter of the year as businesses and government increase spending.
He warned that expectations of weaker gold export receipts could prompt market participants to demand more foreign exchange, potentially placing additional pressure on the Bank of Ghana’s reserves.
“And they know that we have limited reserves. So it’s just about managing it,” he said.
Professor Bokpin also linked possible currency pressures to increased liquidity in the economy as government spending accelerates towards the end of the year.
The Bank of Ghana has itself identified declining reserves, external payments and developments in the Middle East among the risks to Ghana’s external position.
However, recent data indicate that the reserve position subsequently improved to US$12.05 billion by September 22, equivalent to about 4.5 months of import cover.
The latest developments have therefore placed renewed attention on how the central bank manages its foreign exchange interventions while preserving sufficient reserves to cushion the economy against external shocks.
