Ghana's gross international reserves have declined to approximately $11.1 billion as of August 2026, resulting in a foreign-exchange buffer of 4.2 months of import cover. This represents a significant decrease from the $14.16 billion recorded in March 2026. The Bank of Ghana reported that the country's reserves have been declining, with a further drop of $1.87 billion from June to August.
The decline in reserves has occurred despite strong export performance, particularly from gold. The Bank of Ghana reported a trade surplus of $8.8 billion in the first half of 2026, driven by strong gold and cocoa export earnings. The current account surplus also reached $5.1 billion during the same period. However, the country's gross international reserves stood at $12.9 billion at the end of June 2026, indicating a considerable reduction in the country's cushion to meet external payment obligations.
The latest reserve position means Ghana has lost roughly 1.5 months of import cover since the beginning of the year, falling from 5.7 months at the end of 2025 to 4.2 months currently. This shrinking buffer could become more significant if demand for foreign exchange rises during the traditionally stronger fourth-quarter period. The Bank of Ghana has flagged renewed risks to the external position, citing the declining reserves and a projected current account deficit.
Bank of Ghana Governor, Dr. Johnson Pandit Asiama, identified the declining reserves, a projected current account deficit, and a pause in gold exports by the Ghana Gold Board since mid-August as key risks that require close monitoring. He emphasized that rebuilding reserves will be a key priority for the Bank in the coming months. The pause in gold exports introduces additional uncertainty, as gold has been a major source of Ghana's export earnings and foreign-exchange accumulation.
The Bank of Ghana's concern comes against a broader effort to strengthen the external position, following the substantial improvement recorded in the first half of the year before the recent drawdown. The immediate challenge for policymakers is to maintain the recent gains in macroeconomic stability and rebuild the foreign-exchange reserves needed to provide protection against external shocks.
With the fourth quarter approaching, the trajectory of reserves, gold exports, and foreign-exchange demand is likely to remain an important consideration for monetary policy. The Bank of Ghana's Monetary Policy Committee will assess the balance between inflation, exchange-rate stability, and economic activity, taking into account the developments in the external sector.
The reduction in Ghana's reserve buffer highlights the need for the country to rebuild its foreign-exchange reserves and maintain macroeconomic stability. The Bank of Ghana's efforts to strengthen the external position will be crucial in providing protection against external shocks and supporting economic growth.
Key points
- Ghana's gross international reserves have declined to $11.1 billion, reducing the country's foreign-exchange buffer to 4.2 months of import cover.
- The decline in reserves has occurred despite strong export performance, particularly from gold.
- Rebuilding reserves will be a key priority for the Bank of Ghana in the coming months.
