Ghana’s reserve buffer shrinks to 4.2 months as BoG flags fresh external risks

Ghana's reserve buffer has dwindled to four and a half months of import cover, according to the Bank of Ghana, raising concerns about external risks. The reserve decline represents a sharp reversal from the previous high of US$14.16 billion in March 2026. The reduction is attributed to a smaller trade surplus, despite strong gold and cocoa exports, and a projected current account deficit.

The Bank of Ghana Governor Dr Johnson Asiama highlighted the declining reserves, a projected current account deficit, and a pause in gold exports as key risks that warrant close monitoring. The central bank sees rebuilding reserves as a priority in the coming months, especially as gold exports have paused since mid-August. The Bank's concern arises amid broader efforts to strengthen Ghana's external position, following a strong first half of the year.

The immediate challenge is to maintain macroeconomic stability while rebuilding foreign-exchange reserves to protect against external shocks, particularly as the fourth quarter approaches.