Money supply increases to 28.5% year-on-year in June 2026
According to the Bank of Ghana, the increase in broad money growth was largely driven by a significant build-up in Net Foreign Assets (NFA), as well as growth in Net Domestic Assets (NDA).
In June 2026, the annual growth rate of broad money supply (M2+) in Ghana surged to 28.5%, a significant increase from 15.6% in June 2025, according to the Bank of Ghana. This substantial growth was primarily fueled by a sharp rise in Net Foreign Assets (NFA) and Net Domestic Assets (NDA), as reported in the Bank's July 2026 Monetary Policy Report.
The NFA contribution to total liquidity growth grew to 14.8% in June 2026, up from 9.5% a year earlier, indicating a rising trend in foreign asset accumulation within the banking sector. Similarly, NDA's share in M2+ growth expanded to 13.7%, up from 6.1% in June 2025, largely due to increases in Net Claims on Government (NCG) and Claims on the Private Sector.
The NCG's influence on NDA growth grew to 4.9% in June 2026, a stark contrast to the negative 3.0% in June 2025, owing to expanded banking sector investments in Government of Ghana securities, as well as heightened credit to the private sector. The composition of M2+ growth also shifted, with demand deposits' contribution rising to 11.8% from 8.1% in the previous year, reflecting sustained bank deposit accumulation.
Concurrently, foreign currency deposits accounted for 5.9% of the growth, a marked improvement from the previous year's negative 6.3%, primarily due to the cessation of the dual currency CRR policy. Conversely, currency held outside banks contracted to 3.6%, down from 4.7% in June 2025, signifying a decline in cash holdings. The contribution of savings and time deposits also decreased to 7.2%, down from 9.2% over the comparable period.
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