Ghana’s economy saw a sharp increase in the amount of money circulating within the financial system in June 2026, supported by stronger foreign assets held by the banking sector and the central bank, the Bank of Ghana (BoG) has said.
The increase means more funds were available within the financial system to support lending and economic activity, although the central bank continues to monitor the impact of rising money growth on inflation.
According to the BoG’s latest Monetary Policy Committee (MPC) report, reserve money grew by 31.7% year-on-year in June 2026, compared with just 2.0% during the same period in 2025.
Reserve money refers to the money created directly by the central bank, including cash in circulation and funds commercial banks hold with the BoG.
The Bank attributed the increase mainly to a rise in its net foreign assets, alongside changes in reserve requirements affecting banks’ balances at the central bank.
Broad money supply, which captures a wider measure of money available in the economy, also expanded significantly.
The BoG reported that M2+ grew by 28.5% in June 2026, up from 15.6% a year earlier, driven mainly by an increase in the net foreign assets of the banking system.
In simple terms, the growth reflects an improvement in the foreign currency position of Ghana’s financial system, meaning banks and the central bank held more foreign assets compared with the previous year.
The development comes as Ghana’s external sector has recorded stronger performance, supported by improved export earnings.
In the first half of 2026, Ghana’s trade surplus increased to US$8.8 billion, from US$5.8 billion during the same period in 2025, helped by strong earnings from key exports such as gold and cocoa.
The stronger external position has also supported Ghana’s foreign reserves, which stood at US$12.9 billion at the end of June 2026, enough to cover about five months of imports.
However, the increase in money circulating in the economy comes with both opportunities and risks.
On the positive side, increased money availability has supported stronger lending to businesses and households. Private sector credit grew by 41.2% in June 2026, compared with 8.6% a year earlier, as lower interest rates encouraged more borrowing.
Average lending rates declined to 15.6% from 27.0% over the same period, making credit cheaper for businesses seeking funds to expand operations.
But rapid growth in money supply can also create inflation pressures if the amount of money increases faster than the economy’s ability to produce goods and services.
The BoG said inflation remains within its target range but noted that recent price developments, including higher oil prices and exchange rate pressures, require continued monitoring.
The central bank said the economy remains resilient, with real GDP growth reaching 6.4% in the first quarter of 2026, supported by services and industry.
