Demand and savings deposits decreased in August 2026, but currency outside banks increased by 4%
Meanwhile, the annual growth in broad money supply (M2+) increased to 20.4% in August 2026, from 16.6% in August 2025.
In August 2026, demand and savings deposits experienced a decline, falling to 7.8% and 7.0% respectively, down from 10.6% and 7.3% in August 2025. Notably, foreign currency deposits (FCDs) saw a significant increase in their contribution to money supply growth, reaching 1.6% compared to a negative 4.0% the previous year. The Bank of Ghana attributes this shift to the discontinuation of the dual currency Cash Reserve Ratio (CRR) policy.
Additionally, currency outside banks saw a rise to 4.0% in August 2026, up from 2.7% a year earlier, indicating a growing demand for cash holdings. The annual growth in the broad money supply (M2+) also accelerated to 20.4% from 16.6% in August 2025. The Bank of Ghana attributes this increase to a significant accumulation of Net Domestic Assets (NDA), while the growth in Net Foreign Assets (NFA) moderated to keep M2+ growth in check.
The contribution of NFA to total liquidity growth dropped to 7.2% in August 2026 from 8.8% in August 2025, reflecting a gradual slowdown in foreign asset accumulation within the banking sector.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
