Ghana’s external reserves have strengthened significantly, with the Bank of Ghana reporting an increase to approximately $14.5 billion, providing around 5.8 months of import cover.
This represents an improvement from just over $13 billion recorded at the previous Monetary Policy Committee (MPC) meeting in January 2026, signaling stronger external buffers for the economy.
Governor Dr. Johnson Pandit Asiama, speaking at the opening of the 129th MPC meeting on Monday, 16th March, noted that the latest data reflects a broader improvement in macroeconomic conditions, with the economy performing better than earlier anticipated.
He highlighted that headline inflation declined to 3.3 percent in February, marking the 14th consecutive monthly drop and falling below the central bank’s medium-term target band.
Fiscal performance also improved, with a primary surplus of 2.6 percent of GDP recorded at the end of 2025, while the real sector gained momentum, supported by rising business and consumer confidence and a gradual recovery in credit.
“Taken together, these indicators point to an economy stabilising more quickly than many had expected, emphasizing that disciplined policy measures have contributed to this progress,” he said.
He added that the improved reserves position is crucial for maintaining investor confidence and enhancing the country’s capacity to absorb potential global shocks.
Dr. Asiama further indicated that reserve accumulation will remain a key policy priority as the government rolls out initiatives aimed at significantly boosting Ghana’s external buffers.
“Since our last meeting, the government has announced the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), an ambitious initiative aimed at substantially increasing the country’s reserve position over the medium term.
“The programme targets raising international reserves to the equivalent of 50 months of import cover by 2028, compared with the current level of around 5.8 months.” he added.
However, the Governor cautioned that programmes of this scale require careful policy coordination.
“Strengthening external buffers is vital for macroeconomic resilience, but initiatives of this magnitude raise important considerations regarding liquidity conditions, the central bank’s balance sheet, and the interaction between reserve accumulation and monetary policy operations.”
Despite these gains, the MPC emphasized that its current meeting is not simply to affirm positive trends but to evaluate how to sustain them amid rising global uncertainty.
Dr. Asiama highlighted that escalating tensions in the Middle East have disrupted key energy and shipping routes, increasing volatility in global oil markets and posing risks of imported inflation for Ghana.
He noted that while higher gold prices may provide some support to the trade balance, the overall external risk environment remains skewed towards inflation. This, he said, will be a central consideration in the committee’s policy deliberations.
The MPC is also expected to review the Ghana Accelerated National Reserve Accumulation Programme (GANRAP) and assess the effectiveness of monetary policy transmission, particularly given subdued credit growth.
Dr. Asiama stressed the need to balance consolidating recent gains with responding to emerging risks.
“The question before the committee is not whether conditions have improved, but how we respond to that improvement when the factors that enabled it are now under pressure,” he said.
The outcome of the 129th MPC meeting is anticipated to provide key signals on the central bank’s policy direction as it navigates the intersection of domestic economic recovery and growing external uncertainties.
