GHANA LOSES $1.9BN IN RESERVES IN TWO MONTHS

Ghana’s gross international reserves slipped by about US$1.9 billion between June and August 2026, highlighting renewed pressure on the country’s external buffers despite strong export earnings. The latest Bank of Ghana data show that gross international reserves declined from US$12.94 billion in June to US$11.07 billion in August. Cumulatively, the country has lost US$3.09 billion in reserves since the first quarter of 2026 after ending 2025 with US$13.83 billion in reserves. By March 2026, reserves had risen to US$14.16 billion. However, this declined to US$13.95 billion in April, before falling further to US$12.94 billion in June, marking the end of the first half of the year. With the latest end-August figure standing at US$11.07 billion, the country has in essence also lost about 1.5 months of import cover since the beginning of the year, as its reserve buffer has declined from 5.7 months of import cover to the current 4.2 months. This leaves the country with a smaller foreign-exchange cushion to meet external payment obligations. The development is particularly significant because Ghana’s export earnings have remained relatively strong, supported largely by gold exports. However, the improvement in export receipts has not been sufficient to prevent a drawdown in reserves. Speaking at the opening of the Bank of Ghana’s 132nd Monetary Policy Committee meeting, Governor Dr. Johnson Asiama identified a projected current account deficit, declining reserves and a pause in gold exports by the Ghana Gold Board since mid-August as key risks to the country’s external position. He said the developments require close monitoring, particularly ahead of the traditionally stronger demand for foreign exchange in the fourth quarter. “Rebuilding reserves will be a key priority for the Bank in the coming months.” The reserve position is now emerging as an important consideration for the MPC as it assesses the balance between inflation, exchange-rate stability and economic growth. A sustained decline in reserves could limit the Bank’s capacity to respond to foreign-exchange market pressures, particularly if demand for dollars rises in the coming months. The pause in gold exports by GoldBod also adds another layer of uncertainty, given the importance of gold to Ghana’s export receipts and foreign-exchange accumulation. The immediate intervention is therefore not only to maintain macroeconomic stability, but also to rebuild the external buffers needed to cushion the economy against future shocks.