The Ghana Reference Rate (GRR), the benchmark used by commercial banks to price loans, declined marginally to 14.58 percent in February 2026, down from 15.68 percent in January.

The reduction reflects improvements in key variables used to compute the rate, including the Monetary Policy Rate, Treasury bill yields, and interbank market rates.

According to market data, the 91-day Treasury bill rate stood at 11.19 percent at the end of January, while the interbank rate averaged 14.91 percent over the same period. The Bank of Ghana’s recent cut in the Monetary Policy Rate to 15.5 percent was a major contributor to the February decline in the GRR.

The GRR was last reviewed downward on January 7, 2026, when it fell from 15.9 percent in December 2025 to 15.68 percent. In December, the rate had declined following a 350-basis-point cut in the Monetary Policy Rate to 18 percent, alongside a modest drop in Treasury bill rates.

Earlier, in November 2025, the GRR edged up slightly to 17.96 percent from 17.86 percent, driven by rising Treasury bill and interbank rates.

Overall, the benchmark rate trended downward through much of 2025, falling sharply from 29.72 percent in January to 19.67 percent by August.

Background to the GRR

The Ghana Reference Rate was introduced in 2017 by the Bank of Ghana in collaboration with the Ghana Association of Banks to serve as a transparent and consistent benchmark for loan pricing.

It replaced the previous base-rate system following extensive consultations, with the aim of promoting fairness and clarity in lending. The maiden GRR, announced in April 2017, stood at 16.82 percent.

Implications for Borrowers

The latest decline in the GRR could ease borrowing costs marginally in the coming month, particularly for customers on variable-rate loans contracted in February 2026.

While borrowers on fixed-rate loans will not benefit from the adjustment, those on variable rates may see slight reductions depending on individual bank pricing models.

Commercial bank lending rates, which averaged around 22 percent in January 2026, could be adjusted downward in line with the new benchmark.

However, the relief comes amid continued tight credit conditions, as liquidity constraints persist due to measures aimed at controlling inflation and stabilising the economy.

President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, noted that businesses are grappling not only with high borrowing costs but also limited access to credit from commercial banks, a situation he warned has contributed to the collapse of some firms.

The Bank of Ghana has reduced its gold holdings by approximately 51 percent, shifting its focus toward foreign-currency assets to improve liquidity and generate higher investment returns.

Governor Dr. Johnson P. Asiama said the move came after gold made up more than 40 percent of the country’s total reserves, a concentration the central bank deemed too high.

“At the time, we were holding a little over 40 percent, so the decision was made to diversify, and that is what you see today,” Dr. Asiama explained during the 128th Monetary Policy Committee press briefing in Accra.

As part of the strategy, the Bank sold a portion of its gold holdings and reinvested the proceeds into income-generating foreign assets. Dr. Asiama noted that the approach has strengthened, rather than weakened, Ghana’s reserve accumulation.

“The effects we aimed for are already visible. The assets are earning dividends and contributing to reserve growth,” he said.

The reduction in gold exposure comes amid a global rally, with spot gold prices rising above US$5,200 an ounce in late January. However, Dr. Asiama cautioned that the surge may be temporary.

“It is true gold prices have reached record levels, but what you see now may be transitory and may not be permanent,” he said.

Despite the lower share of bullion, Ghana’s gross international reserves grew to US$13.8 billion at the end of December 2025, covering 5.7 months of imports, up from US$9.1 billion a year earlier.

Dr. Asiama emphasized that the adjustment reflects portfolio management rather than a retreat from gold. Future decisions will continue to focus on what is structurally optimal for Ghana’s reserves.

President John Dramani Mahama has urged African countries to bring an end to the export of raw materials, warning that the continent will continue to lose jobs, revenue and industrial capacity if it fails to add value to its natural resources.

Speaking at the Africa Trade Summit on Wednesday, President Mahama said Africa’s long-standing dependence on primary commodity exports had entrenched economic vulnerability and stunted industrial development.

“Africa cannot continue to export raw materials and re-import finished goods at many times their original value,” he said, describing the model as one that “exports wealth and imports unemployment.”

The President cited cocoa as a clear example of the structural imbalance facing African economies, noting that while Africa produces the majority of the world’s cocoa, it earns only a small share of the value generated by the global chocolate industry.

“This situation is not unique to cocoa,” he said. “We see the same pattern in oil, textiles, timber and mineral resources, where Africa remains at the bottom of the value chain.”

President Mahama stressed that industrialization on the continent must be anchored in value addition and beneficiation, arguing that processing Africa’s resources locally would create jobs, support technology transfer and expand domestic revenue.

Turning to Ghana’s experience, he said the country was deliberately shifting away from a commodity-export model towards a value-added economy. According to him, this strategy prioritizes agro-processing, manufacturing and industrial clusters aligned with Ghana’s natural endowments.

“Our focus is to add value to what we produce—cocoa, cashew, oil palm, cassava, petroleum, gold, manganese and bauxite—so that these resources can drive real economic transformation,” President Mahama said.

He added that value addition was also critical to the success of the African Continental Free Trade Area (AfCFTA), noting that meaningful intra-African trade would only be achieved if countries traded finished and semi-finished goods rather than raw materials.

“Beneficiation is not optional; it is essential if Africa is to industrialize, compete globally and secure prosperity for its people,” he said.

The Africa Trade Summit brings together heads of state, policymakers, business leaders and development partners to discuss strategies for boosting industrialization, strengthening regional value chains and expanding intra-African trade.