BoG Governor Hails 2025 as ‘Year of Restoration’ as Inflation Falls to 5.4% and Reserves Hit Record $13.8bn
The Bank of Ghana (BoG) has described 2025 as a landmark “year of recovery,” citing a sharp deceleration in inflation and an unprecedented accumulation of foreign exchange reserves as proof that its tight policy stance has delivered macroeconomic stability.
At his maiden New Year press engagement on Friday, Governor Dr Johnson Asiama disclosed that inflation fell steeply from 23.8 percent in December 2024 to 5.4 percent at the close of December 2025. He attributed the turnaround to firm monetary tightening, prudent liquidity control and consistent policy signalling.
A key highlight of the briefing was the significant improvement in the country’s external buffers. Through the Bank’s domestic gold purchasing initiative, gross international reserves were lifted to more than $13.8 billion, providing import cover of about 5.7 months.
Describing the outcome as unprecedented, Dr Asiama stressed that the reserve position was unlike anything he had witnessed in his long career at the Central Bank.
“I have not experienced reserves at this level since I joined the Bank in 1995,” he noted.
The development signals a sharp reversal from the economic pressures that characterised recent years and, according to the Governor, affirms the impact of a demanding adjustment phase that required tough policy choices and sustained discipline.
He explained that the recovery was driven by a coordinated, evidence-based strategy anchored in strict monetary control, the deployment of gold holdings to support the currency, reforms aimed at improving transparency in the foreign exchange market, and enhanced regulatory supervision of the banking system.
Despite the progress, the Governor cautioned that the achievements should be seen as a platform for consolidation rather than an end point.
He underscored the need to safeguard the stability achieved and warned against any sense of self-satisfaction.
“The progress we have made through discipline, restraint and institutional resolve places a duty on us to proceed with caution and humility,” he said.
