The Bank of Ghana (BoG) has raised concerns about Ghana’s external position, saying declining foreign exchange reserves and a weaker current account could limit the room available for monetary policy in the months ahead.
The country’s gross international reserves had fallen to US$11.07 billion, equivalent to 4.2 months of import cover from US$11.43 billion at the end of July 2026..
Speaking at the opening of the 132nd Monetary Policy Committee meeting in Accra on Wednesday, September 23, 2026, Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, said said the situation required the Bank to prioritise rebuilding its foreign exchange reserves as Ghana approaches the final quarter of the year, when demand for foreign currency typically increases.
Rebuilding net foreign assets must therefore remain the priority heading into the fourth quarter,” Dr. Asiama emphazied.
Current account under pressure
The Governor said Ghana’s external position had weakened partly because gold shipments slowed while payments for services increased. He said the current account was expected to record a deficit in the third quarter.
The weaker current account, the decline in reserves and the pause in gold exports by GoldBod since mid-August call for a careful look at our buffers ahead of the usual rise in foreign exchange demand in the fourth quarter,” he said.
To be sure, the current account measures the flow of goods, services, income and transfers between Ghana and the rest of the world, therefore a deficit implies the country is spending more foreign exchange abroad than it is earning through these external transactions over the period.
Cedi and import costs
The development could have implications for the stability of the cedi, particularly if demand for foreign exchange rises faster than the supply available in the market.
A weaker cedi would make imported goods, fuel, machinery, raw materials and other inputs more expensive, potentially increasing costs for businesses and households.
Dr. Asiama said the domestic economy currently provides some room for policy action, but warned that the country’s external position would determine how much of that room could safely be used.
The domestic position affords policy space; the external position determines how much of it can safely be used,” he said.
The Governor’s comments highlight the importance of maintaining sufficient foreign exchange buffers to help manage external shocks and support confidence in the local currency.
Economy remains resilient
Despite the external pressures, the Governor said Ghana’s broader economic conditions remained stable.
Real Gross Domestic Product (GDP) grew by 6.0 percent in the second quarter of 2026, supported mainly by the services and Information and Communication Technology (ICT) sectors.
Domestic macroeconomic conditions remain stable and broadly positive,” Dr. Asiama said.
He also noted that the fiscal position was stronger than programmed, public debt had fallen to 45 percent of GDP, and all three major credit rating agencies had upgraded Ghana.
The risk of debt distress had also been reassessed from high to moderate, while the banking sector remained sound, liquid and profitable, according to the Governor. However, he said the rapid increase in private-sector credit would require close monitoring.
Fiscal policy also a concern
The Bank is also watching developments in government spending and borrowing during the remainder of the year.
Dr. Asiama said government spending was expected to increase, while the share of short-term domestic debt was also rising.
He said the completion of Ghana’s external debt restructuring would increase debt service obligations, with possible implications for liquidity and the exchange rate.
Spending is set to rise, the share of short-term domestic debt is rising, and completion of the external debt restructuring will raise debt service obligations, each with implications for liquidity and the exchange rate,” he said.
What it means for the economy
For businesses, the Bank’s focus on rebuilding reserves could help strengthen confidence in the foreign exchange market and support exchange rate stability if reserves improve.
For households, a more stable cedi would help contain the cost of imported goods and reduce the risk of imported inflation.
However, weaker reserves combined with higher foreign exchange demand could put pressure on the cedi and increase the cost of imports if the situation persists.
The MPC is therefore weighing the need to support economic activity against the need to protect inflation gains, maintain exchange rate stability and rebuild the country’s external buffers.
The current Monetary Policy Rate stands at 14 percent, following the Committee’s decision in July to maintain the rate.
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