Fresh data from the Bank of Ghana (BoG) has revealed a sharp decline in the country’s external buffers, with gross international reserves falling by roughly $1.9 billion between June and August 2026.
The figures show that foreign exchange reserves tumbled from $12.94 billion in June to $11.07 billion by the end of August, pointing to mounting pressure on Ghana’s foreign exchange position despite solid export revenues.
The recent drop extends a downward path that began earlier in the year. After closing 2025 at $13.83 billion, reserves peaked at $14.16 billion in March 2026 before steadily weakening to $13.95 billion in April and $12.94 billion at the close of the first half in June. In total, the central bank has seen $3.09 billion wiped off its reserve stock since the end of the first quarter.
The erosion has squeezed the nation’s import safety net, reducing import cover from 5.7 months at the start of the year to 4.2 months at the end of August—a loss of about 1.5 months of protection.
Opening the 132nd Monetary Policy Committee (MPC) meeting, BoG Governor Dr Johnson Asiama pointed to a projected current account deficit, shrinking reserves, and a freeze on gold exports by the Ghana Gold Board (GoldBod) since mid-August as primary threats to external stability.
He warned that these factors demand heightened vigilance ahead of the fourth quarter, a period notorious for heavy commercial dollar demand.
“Rebuilding reserves will be a key priority for the Bank in the coming months,” Dr Asiama emphasized.
The narrowing buffer poses a central challenge for the MPC as it attempts to manage inflation, steady the cedi, and sustain economic growth. A prolonged drain on reserves leaves the central bank with limited ammunition to intervene in the currency market if dollar demand escalates later in the year.
Complicating matters further is the temporary halt in gold shipments by GoldBod, which temporarily halts a crucial stream of foreign exchange inflows and export receipts. Central bank officials are expected to prioritize short-term stabilization measures to rebuild these critical safety reserves against future economic shocks.
By: Rainbowradioonline.com/Ghana
