By 
The Bank of Ghana (BoG) has assured investors and market participants that the country’s external reserves remain adequate to support exchange rate stability and cushion the economy against external shocks, despite a decline in gross international reserves during the first half of 2026.
According to the central bank, Ghana’s gross international reserves stood at US$12.9 billion at the end of June 2026, down from US$13.8 billion recorded in December 2025. The reduction was largely attributed to higher energy-related import payments driven by renewed geopolitical tensions in the Middle East and rising global crude oil prices.
The update was provided by the Governor of the Bank of Ghana, Dr Johnson Asiama, while briefing journalists after the conclusion of the 131st Monetary Policy Committee (MPC) meeting.
Higher Energy Costs Drive Reserve Drawdown
Dr Asiama explained that the decline in foreign exchange reserves reflects increased expenditure on energy imports following renewed instability in the Middle East, which has pushed international oil prices above US$85 per barrel.
According to the Governor, the reserve stock currently provides approximately five months of import cover, compared with 5.7 months at the end of 2025.
“The decline in reserves reflected elevated energy-related payments arising from the Middle East crisis,” he stated.
The escalation of geopolitical tensions has disrupted global energy markets, increasing import costs for energy-dependent economies such as Ghana and placing additional pressure on external sector balances.
Strong External Sector Supports Reserve Position
Despite the reduction in reserves, the Bank of Ghana maintained that the country’s external sector remains resilient, supported by robust export earnings from gold and cocoa.
According to the Monetary Policy Committee, Ghana recorded a significant improvement in its trade balance during the first half of 2026 as export revenues continued to outpace imports despite rising import costs.
The country’s current account surplus also increased to US$5.1 billion, compared with US$4.1 billion during the corresponding period in 2025.
The central bank noted that improvements in both the current account and capital account have strengthened Ghana’s overall balance of payments and continue to provide support for external reserves.
BoG Says Reserve Decline Reflects Planned Obligations
Addressing concerns about the fall in reserve levels, Dr Asiama stressed that the drawdown should not be interpreted as a deterioration in Ghana’s external financial position.
According to him, the reduction reflects the settlement of legitimate external obligations, including debt servicing, government-related payments, import financing, and higher energy import bills.
“I don’t think I want to call it a reserves depletion at this point. These were legitimate expenditures that had to be covered, including debt service payments, government external obligations, imports and increased oil-related payments,” he said.
The Governor added that Ghana’s reserve management strategy has positioned the country to absorb external shocks more effectively than in previous years.
Geopolitical Risks Remain Key Concern
The Bank of Ghana noted that developments in the Middle East remain one of the principal risks to the country’s macroeconomic outlook.
Authorities are closely monitoring disruptions around the Strait of Hormuz, a critical global shipping route for crude oil, as prolonged instability could further increase energy prices and place additional pressure on Ghana’s foreign exchange reserves.
According to Dr Asiama, the central bank will continue assessing developments and adjust its reserve management strategy where necessary.
“We are reviewing these developments going forward, particularly whether the Strait of Hormuz situation becomes a prolonged challenge, and we will adopt the appropriate strategy,” he stated.
He added that previous efforts to strengthen reserve buffers have significantly improved Ghana’s resilience.
“The strategy we introduced to build reserves has proven effective. Imagine if we had not accumulated these reserves,” he said.
Inflation and Monetary Policy Outlook
The Monetary Policy Committee identified rising global energy prices as one of the major external risks influencing the country’s inflation outlook.
According to the committee, sustained increases in oil prices could raise transport and utility costs, increase import expenses, and contribute to higher domestic inflation.
These considerations formed part of the committee’s decision to maintain the policy rate at 14 per cent, as policymakers continue balancing inflation control with macroeconomic stability.
The MPC also cautioned that prolonged geopolitical uncertainty could tighten global financial conditions, creating additional challenges for emerging and developing economies.
BoG Remains Optimistic About External Sector Outlook
Despite recent pressures, the central bank expressed confidence that Ghana’s external sector will remain resilient in the months ahead.
Strong export earnings from gold and cocoa, together with continued trade and current account surpluses, are expected to support foreign exchange inflows and strengthen reserve accumulation over time.
Dr Asiama reaffirmed the Bank of Ghana’s commitment to preserving macroeconomic stability through prudent reserve management and continuous monitoring of global developments.
“Rest assured, our reserves will not get depleted. Our trade balance remains in surplus, the capital account is also in surplus, and we will continue exploring additional avenues for generating foreign exchange to ensure reserves remain at comfortable levels,” he said.
Analysts believe that the performance of Ghana’s reserves during the second half of 2026 will largely depend on the trajectory of global energy prices, geopolitical developments in the Middle East, and the country’s ability to sustain strong export growth while managing rising import costs.
Comments