The volume of Cedi circulating outside Ghana’s banking sector surged to GH₵ 64.1 billion by the end of December 2024, marking a sharp 77.07% increase from GH₵ 36.2 billion in January 2024, according to the Bank of Ghana’s (BoG) January 2025 Summary of Economic and Financial Data.
Alongside the surge in currency circulation, demand deposits held by banks also experienced significant growth, rising from GH₵ 80.8 billion at the start of 2024 to GH₵ 104.1 billion by year-end. Combined, currency in circulation and demand deposits, classified as narrow money (M1) totaled GH₵ 168 billion at the close of 2024.
Broad money (M2), which includes savings and time deposits, also expanded significantly, reaching GH₵ 247.8 billion—a 36.4% jump from GH₵ 181.6 billion in January 2024.
Total liquidity in the economy, measured by M2+, climbed to GH₵329.7 billion by the end of 2024, reflecting an increase of GH₵ 83.5 billion compared to the GH₵ 246.2 billion recorded at the beginning of the year.
The sharp rise in money supply suggests increased liquidity in the economy, which could have far-reaching implications for inflation, interest rates, and overall economic activity. Analysts will be closely monitoring how this surge impacts consumer spending, business investment, and monetary policy decisions in the coming months
