Ghana's foreign exchange (FX) reserves have reached their highest point in more than a year. Gross international reserves stood at $14.4 billion by May 18, 2026. This is equivalent to 5.7 months of import cover. This figure is up from $13.8 billion at the end of December 2025.
The increase in reserves comes as Ghana's external financial standing improved in the first quarter of 2026. The country's current account surplus grew to $3.10 billion. This is higher than the $2.43 billion recorded in the same period of 2025. Strong export earnings from gold and cocoa and steady remittances contributed to this improvement. However, these gains are being offset by rising costs for services and investment payments.
Despite the stronger reserve position, the Ghanaian cedi has continued to lose value. The currency depreciated by 8.4 percent against the US dollar by May 15, 2026. Market analysts estimate that the decline has worsened in recent weeks. Databank Research reports the cedi's year-to-date depreciation reached 10.11 percent by the third week of May. The local currency traded at GH¢11.63 per US dollar on the interbank market. Retail rates weakened to around GH¢12.20 per US dollar.
Bank of Ghana Governor Dr. Johnson Pandit Asiama explained the currency pressure. He cited increased dollar demand from the energy sector. He also pointed to seasonal dividend payments by multinational companies. Dr. Asiama reassured the public that the central bank's regular FX auctions are active and well-supplied. "Our auction is still there. We have announced it, pre-announced it; the banks are aware. We continue doing what we are doing," he stated.
The International Monetary Fund (IMF) had previously raised concerns about the scale of the central bank's FX market involvement. In 2025, the Bank of Ghana injected $1.4 billion in the first quarter alone. Full-year efforts reached approximately $10 billion through liquidity support programs. Following IMF advice, the Bank of Ghana implemented a formal Foreign Exchange Operations Framework. This framework includes twice-weekly auctions and pre-announced monthly targets for licensed banks. This structure aligns with the Fund's recommendations for a rules-based approach.
Governor Asiama stressed that the central bank is not engaged in unusual market intervention. The current strategy focuses on rebuilding reserve buffers after periods of economic instability. "We are not intervening; we are rather building reserves. The auctions are a regular part of our intermediation efforts," he explained. The Bank of Ghana continues to provide FX liquidity through its twice-weekly auctions. About $1 billion is scheduled for release this month. "We have not reduced our presence at all. The banks are aware of it. There should not be too much panic about that," the Governor added.
This policy stance suggests policymakers are trying to balance two important goals. They aim to maintain adequate reserves. Simultaneously, they want to limit excessive currency swings that could reverse recent progress in reducing inflation. Databank Research noted that the cedi's depreciation surpassed their forecast of GH¢11.40 per US dollar. This may reflect the Bank of Ghana's cautious approach to FX market operations. This caution could be linked to waiting for clearer and more stable inflow visibility. Lingering demand pressures also contribute to this strategy.
Analysts believe this approach reflects lessons learned from Ghana's past balance-of-payments challenges. In those instances, aggressive use of reserves did not prevent sharp currency falls. This eventually led to the country seeking IMF support for economic recovery. The current depreciation cycle poses risks for inflation and fuel prices. These risks are amplified by ongoing geopolitical tensions in the Middle East.