Ghana’s gross international reserves have fallen to about US$11.1 billion at the end of August 2026, reducing the country’s foreign-exchange buffer to 4.2 months of import cover.
The latest decline has prompted the Bank of Ghana to flag renewed risks to the country’s external position, with reserves recording a significant drop from the US$14.16 billion recorded in March.
Reserves stood at US$12.94 billion at the end of June and have since declined by about US$1.87 billion, leaving Ghana with a smaller cushion to meet external payment obligations and respond to pressures in the foreign-exchange market.
The decline comes despite strong export performance, particularly from gold.
The Bank of Ghana previously reported that Ghana recorded a US$8.8 billion trade surplus in the first half of 2026, supported by strong earnings from gold and cocoa exports. The current account also recorded a US$5.1 billion surplus during the period.
Despite these gains, gross international reserves stood at US$12.9 billion at the end of June before falling further in July and August.
The latest position means Ghana has lost approximately 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.
The shrinking reserve buffer could become more significant if foreign-exchange demand increases during the traditionally stronger fourth-quarter period.
Bank of Ghana flags external risks
Bank of Ghana Governor, Dr Johnson Asiama, identified the declining reserves, a projected current account deficit and a pause in gold exports by the Ghana Gold Board (GoldBod) since mid-August as key developments requiring close monitoring.
He said these factors would be important considerations for the Monetary Policy Committee as it assesses the balance between inflation, exchange-rate stability and economic activity.
“Rebuilding reserves will be a key priority for the Bank in the coming months,” Dr Asiama said.
The pause in GoldBod’s gold exports introduces an additional uncertainty for the external sector, given the importance of gold to Ghana’s export earnings and foreign-exchange accumulation.
Focus shifts to rebuilding reserves
The latest decline comes after a significant improvement in Ghana’s external position during the first half of 2026.
The immediate policy challenge is therefore to sustain the gains recorded in macroeconomic stability while rebuilding the foreign-exchange reserves needed to provide a buffer against external shocks.
With the fourth quarter approaching, developments in international reserves, gold exports and foreign-exchange demand are expected to remain important factors for monetary policy and the management of Ghana’s external position.
