Ghana’s External Reserves Rise to $14.5bn as Inflation Eases, Central Bank Reports

Ghana’s external reserves have increased to about $14.5 billion, according to the Bank of Ghana, offering approximately 5.8 months of import cover and reinforcing the country’s external stability.

The latest figure represents an improvement from just over $13 billion recorded during the previous Monetary Policy Committee meeting in January 2026, indicating a continued build-up of buffers to cushion the economy against external shocks.

Speaking at the opening of the 129th Monetary Policy Committee meeting on Monday, March 16, Governor Johnson Pandit Asiama said the increase reflects broader gains in macroeconomic performance, with the economy showing stronger-than-expected resilience.

Inflation, he noted, has continued on a downward trend, falling to 3.3 percent in February and marking 14 consecutive months of decline. The rate now sits below the central bank’s medium-term target band, presenting new considerations for policymakers.

On the fiscal front, Ghana recorded a primary surplus of 2.6 percent of GDP at the end of 2025. The Governor also indicated that economic activity in the real sector is gradually strengthening, supported by improving business and consumer confidence, alongside a modest recovery in credit growth.

He said the combined indicators point to a faster pace of economic stabilisation than previously anticipated, reflecting the impact of sustained policy measures.

The stronger reserve position, he added, is critical for maintaining investor confidence and improving Ghana’s capacity to absorb global economic shocks.

Reserve accumulation is expected to remain a key focus under the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), which aims to significantly expand the country’s external buffers over the medium term. The programme targets reserves equivalent to 50 months of import cover by 2028, up from the current level of about 5.8 months.

However, the Governor cautioned that such targets require careful policy coordination, noting potential implications for liquidity conditions, the central bank’s balance sheet and overall monetary policy management.

Despite the positive outlook, he stressed that policymakers must focus not only on recent gains but also on sustaining them in a challenging global environment. Rising tensions in the Middle East, he warned, are already affecting global energy markets and shipping routes, increasing the risk of imported inflation and presenting new uncertainties for the economy.