Accra: Foreign exchange (FX) reserves in Ghana have reached their highest point in over a year as of May, yet this increase has not alleviated the ongoing pressure on the cedi. Rising corporate demand for dollars, seasonal dividend repatriation, and high oil prices continue to impact the currency.
According to Ghana Web, recent data from the Bank of Ghana indicates that gross international reserves climbed to US$14.4 billion by May 18, 2026, equating to 5.7 months of import cover. This marks an increase from US$13.8 billion at the end of December 2025. The accumulation of reserves coincided with an improved external position in the first quarter, with the current account surplus expanding to US$3.10 billion from US$2.43 billion compared to the same period in 2025.
Dr. Johnson Pandit Asiama, the Bank of Ghana Governor, highlighted during the central bank's 130th Monetary Policy Committee press briefing that the stronger external position was bolstered by robust gold and cocoa export earnings coupled with resilient remittance inflows. However, the stronger reserve position has not translated into stability for the cedi.
The cedi experienced a depreciation of 8.4 percent against the US dollar in the interbank market by May 15, as reported by the central bank. Market analysts estimate that losses have increased further in recent weeks. Databank Research revealed that the currency's year-to-date depreciation had extended to 10.11 percent by the close of the third week in May, due to sustained foreign exchange demand pressures.
Dr. Asiama attributed the ongoing pressure primarily to increased dollar demand from the energy sector and seasonal dividend payments by multinational companies. He assured that the central bank's regular FX auctions remain active and adequately supplied. Despite concerns from the IMF regarding the scale of the central bank's FX market presence, BoG has continued its efforts under an operational Foreign Exchange Operations Framework.
The central bank's strategy is focused on preserving and rebuilding reserve buffers amid macroeconomic instability, rather than engaging in extraordinary market intervention. Dr. Asiama emphasized that BoG is not reducing its presence in the market and is providing FX liquidity through its auctions. Analysts suggest that the central bank's cautious approach may reflect a deliberate effort to preserve reserves while awaiting more sustainable inflow visibility.
However, the current depreciation cycle poses risks for inflation and fuel prices, especially as geopolitical tensions in the Middle East keep crude oil prices elevated. Dr. Asiama noted that any easing in Middle East tensions and a decline in oil prices could help moderate domestic FX pressures.
A market analyst noted that Ghana's foreign exchange supply position remains relatively strong due to elevated gold prices and continued purchases by the Ghana Gold Board. The Bank of Ghana appears willing to allow the cedi's gradual adjustment toward its 'true value,' while repairing its balance sheet. However, the analyst warned that authorities might face pressure to intensify intervention efforts if currency weakness significantly affects domestic fuel prices and broader inflation.