Ghana's international reserves drop by US$1.2 billion despite surge in export earnings

Ghana's foreign exchange reserves came under pressure during the first half of 2026, with the country's Gross International Reserves declining by US$1.2 billion between March and June despite a sharp increase in export earnings.

Figures contained in the latest Summary of Economic and Financial Data released by the Bank of Ghana (BoG) show that Gross International Reserves fell from US$14.16 billion in March 2026 to US$12.94 billion by June 2026.

The decline also reduced Ghana's import cover from 5.7 months to five months, reflecting a smaller foreign currency buffer available to finance imports and meet other external obligations.

Net International Reserves also recorded a decline over the same period, dropping from US$11.87 billion in March to US$10.8 billion in June.

The fall in reserves occurred despite a strong improvement in the country's export performance, largely driven by higher gold exports.

Export Earnings Soar

Total export earnings more than doubled, increasing from US$8.51 billion in March to US$18.29 billion by June 2026.

Gold remained the country's leading export, with receipts rising from US$5.26 billion to US$12.50 billion during the period.

Cocoa exports also recorded growth, increasing from US$1.65 billion to US$2.29 billion.

Crude oil exports climbed significantly from US$753 million to US$1.71 billion, while earnings from other exports rose from US$858 million to US$1.79 billion.

The strong export performance helped widen Ghana's trade surplus, with the trade balance improving from US$4.53 billion in March to US$8.81 billion in June.

Rising Imports Offset Export Gains

Despite the surge in export receipts, the country's reserve position weakened as foreign exchange outflows increased alongside rising import demand.

Total imports expanded from US$3.99 billion in March to US$9.48 billion by June.

Oil imports accounted for a significant portion of the increase, rising from US$1.31 billion to US$3.35 billion, while non-oil imports grew from US$2.69 billion to US$6.14 billion.

The figures suggest that although Ghana generated substantially more foreign exchange through exports, much of those earnings were absorbed by higher import payments and other external financial commitments.

Gold Holdings Increase

One positive development was the continued growth in Ghana's gold reserves.

The value of the country's gold holdings increased from US$3 billion in March to US$3.6 billion in June, while physical gold reserves rose from 20.8 tonnes to 24.4 tonnes.

Implications for the Economy

The decline in international reserves is significant because the reserves serve as a key buffer for maintaining exchange rate stability, financing imports and strengthening investor confidence.

A weaker reserve position could place additional pressure on the cedi, particularly during periods of heightened demand for foreign exchange, and may limit the Bank of Ghana's ability to intervene in the foreign exchange market to stabilise the currency.

However, the strong growth in exports and the widening trade surplus provide a positive foundation for Ghana's external sector.

As the country enters the second half of 2026, the challenge for both fiscal and monetary authorities will be to translate the gains from higher export earnings into a stronger reserve position while sustaining exchange rate stability and preserving adequate external buffers.