Ghana’s banking system recorded a fresh liquidity boost in April 2026 after reserve money rose by 9 billion cedis month-on-month, according to Bank of Ghana data, signalling an expansion in base money that underpins banking operations and short-term financial activity.
Reserve money increased from 141.1 billion cedis in March 2026 to 150.1 billion cedis in April, reflecting a higher level of cash in circulation and increased commercial bank reserves held at the central bank.
Reserve money, which forms the foundation of liquidity in the financial system, indicates the amount of central bank money available to support settlement between banks and broader financial transactions. Its rise is often interpreted as a signal of easing liquidity conditions within the banking sector.
The increase in April suggests that banks had more funds available to support day-to-day transactions, interbank settlements, and short-term financing needs, even as broader credit growth remained relatively contained.
Broader monetary aggregates also strengthened over the period. Narrow money (M1), which captures cash in circulation and demand deposits, rose from 222.6 billion cedis in March to 228.8 billion cedis in April, while broad money (M2) increased from 329.5 billion cedis to 338.5 billion cedis.
Total liquidity (M2+), which includes foreign currency deposits, also expanded from 406.1 billion cedis to 417.4 billion cedis, pointing to a general increase in money holdings within the financial system.
Despite the liquidity gains, growth in private sector credit remained modest, rising only slightly from 109.4 billion cedis in March to 110.9 billion cedis in April. This suggests that while banks are holding more liquidity, lending to businesses and households has not accelerated at the same pace.
Net domestic assets increased significantly over the period, driven in part by higher claims on government, indicating continued reliance on the domestic banking system for financing needs.
However, net foreign assets declined from 122.7 billion cedis in March to 116.7 billion cedis in April, pointing to some easing in external buffers even as domestic liquidity conditions improved.
Overall, the data points to a banking system with rising liquidity but cautious credit expansion, reflecting a financial environment where funds are available but lending appetite remains measured.
