Ghana’s foreign exchange reserves remain robust at about US$12.9 billion, providing the economy with a significant cushion against external shocks despite rising global oil prices and a higher import bill, Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has said.
According to the Governor, the country’s external sector continues to demonstrate resilience, supported by strong export earnings from gold and cocoa and an improved trade surplus during the first half of 2026.
“Our external sector has also remained resilient,” Dr Asiama said, explaining that the reserve position strengthens the central bank’s ability to respond to external pressures and maintain stability in the foreign exchange market.
“These reserves give us a strong buffer against external shocks and help the Bank of Ghana support stability in the foreign exchange market,” he stated.
Dr Asiama made the remarks during a stakeholders’ engagement and dinner meeting organised by the Bank of Ghana in Sunyani.
The engagement brought together entrepreneurs, business owners, traders, trade associations and other private-sector players as part of the central bank’s efforts to deepen dialogue with stakeholders and ensure that its policies respond effectively to developments within the economy.
Private Sector Credit Expands
Dr Asiama also pointed to a significant expansion in credit to the private sector as evidence of improving economic activity.
According to him, credit extended to businesses and households grew by more than 41 percent in June 2026, compared with about nine percent during the corresponding period in 2025.
“This means more businesses have access to financing to expand, create jobs and contribute to economic growth,” he said.
The Governor noted that increased access to credit, stronger trade activity, industrial production and a recovery in tourism were contributing to economic momentum.
BoG Pledges Forex Market Stability
Addressing developments in the foreign exchange market, Dr Asiama acknowledged that the Ghana cedi came under some pressure earlier in the year, partly due to global developments, including the conflict in the Middle East.
He, however, reaffirmed the central bank’s commitment to maintaining an orderly and efficiently functioning foreign exchange market.
While describing Ghana’s recent economic performance as encouraging, the Governor cautioned against complacency, noting that uncertainties in the global economy could still affect domestic conditions.
“The progress we have made is encouraging, but we must not become complacent,” he said.
Dr Asiama stressed that the BoG would continue to pursue policies aimed at protecting the value of the cedi, maintaining price stability, safeguarding the financial system and supporting sustainable economic growth.
“Our goal is simple: to create an economic environment where businesses can grow with confidence, households can plan for the future, and every Ghanaian can share in the benefits of a stable and growing economy,” he stated.
He added that maintaining macroeconomic stability requires cooperation among the central bank, government policymakers, financial institutions, businesses, traders, farmers and households.
“When we understand one another, when we collaborate, and when we trust the process, the path to stability becomes clearer and more achievable,” Dr Asiama said.
Policy Rate Maintained at 14%
Turning to monetary policy, the Governor said the Monetary Policy Committee (MPC) had assessed developments in both the domestic and global economies before deciding to maintain the Monetary Policy Rate at 14 percent.
He explained that the decision was intended to strike an appropriate balance between keeping inflation under control and supporting investment, business activity and economic growth.
“At the same time, it gives us the flexibility to respond to changes in the global economy if necessary,” he said.
Dr Asiama said uncertainty in the international economy, particularly developments in the Middle East and higher crude oil prices, remained an important risk to Ghana’s economic outlook.
Inflation Remains Within Target
On the cost of living, Dr Asiama said inflation remained relatively low despite a recent increase.
Inflation rose from 3.7 percent in May to 5.3 percent in June 2026, but the Governor said the rate remained below the central bank’s target range.
He attributed much of the recent increase to higher transport costs following increases in international crude oil prices.
“Low and stable inflation is good for everyone. It helps families manage their household budgets, allows businesses to plan with greater confidence, and encourages investment,” he said.
Economy Records 6.4% Growth
Dr Asiama further disclosed that Ghana’s economy expanded by 6.4 percent during the first quarter of 2026, marginally higher than the 6.2 percent growth recorded during the same period in 2025.
He said the services and industrial sectors were major drivers of the expansion, with other indicators also pointing to increased economic activity.
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“This growth was driven mainly by the services and industrial sectors, and we are now seeing increased activity across many parts of the economy, including stronger bank lending to businesses, increased trade, higher industrial production and a recovery in tourism,” the Governor said.
Despite the positive indicators, Dr Asiama maintained that the Bank of Ghana would remain vigilant as global economic and geopolitical uncertainties continue to pose potential risks to Ghana’s recovery.
He said the central bank’s priority would remain maintaining price and financial stability while creating conditions that support sustainable economic growth and improved confidence among businesses and households.
Source: Isaac Kofi Dzokpo /capitalnewsonline.com
