Ghana’s gross international reserves fell to a 12-month low of $11.07 billion in August, despite relatively strong gold export earnings, leaving the country with a narrower foreign exchange buffer as demand for dollars is expected to rise towards the end of the year.
Data from the Bank of Ghana show that reserves dropped by about $1.9 billion between June and August, from $12.94 billion to $11.07 billion. The decline means Ghana has lost about $3.09 billion in reserves since the first quarter of 2026, after ending 2025 with $13.83 billion.
The country’s reserves initially strengthened in the first quarter, reaching $14.16 billion in March, before falling to $13.95 billion in April and $12.94 billion by June. By August, the decline had reduced Ghana’s import cover to 4.2 months, from 5.7 months at the beginning of the year.
The fall in reserves has occurred despite gold remaining a major source of foreign exchange for Ghana. Strong export receipts have provided foreign exchange inflows, but these have not been sufficient to prevent the continued drawdown in the country’s external buffers.
Johnson Asiama, governor of the Bank of Ghana, identified the falling reserves, a projected current account deficit and a pause in gold exports by the Ghana Gold Board since mid-August as key risks to the country’s external position.
Speaking at the opening of the central bank’s 132nd Monetary Policy Committee meeting, Asiama said the developments required close monitoring, particularly as foreign exchange demand typically increases in the fourth quarter.
‘Rebuilding reserves will be a key priority for the Bank in the coming months,’ he said.
The pause in gold exports by GoldBod could add to the pressure on Ghana’s external position because of the importance of gold to the country’s foreign exchange earnings and reserve accumulation. At the same time, the projected current account deficit could put further pressure on the external account.