Ghana's foreign reserves fall by $1.2bn despite gold export boom

Ghana's foreign currency reserves fell by more than $1.2bn in the second quarter of 2026, even as the country recorded a sharp rise in export earnings driven by soaring gold sales, according to new data from the Bank of Ghana.

The figures shows a growing challenge for the Ghanaian economy: stronger export receipts are not translating into a larger foreign exchange buffer, as rising import bills and external payment obligations continue to weigh on the country's reserves.

The Bank of Ghana's latest monetary data shows Gross International Reserves declined from $14.16bn in March 2026 to $12.94bn by June, reducing import cover from 5.7 months to five months.

Net International Reserves also fell, dropping from $11.87bn to $10.8bn over the same period.

International reserves are closely watched because they help countries pay for imports, support their currencies during periods of market volatility and reassure international investors of their ability to meet external obligations.

Gold exports surge

The decline comes despite a remarkable improvement in Ghana's export performance.

Total exports more than doubled from $8.51bn in March to $18.29bn in June, largely on the back of higher gold exports.

Gold exports climbed from $5.26bn to $12.5bn, reinforcing the mineral's position as Ghana's largest foreign exchange earner.

Cocoa exports also increased from $1.65bn to $2.29bn, while crude oil exports rose from $753m to $1.71bn. Other exports grew from $858m to $1.79bn.

The stronger export performance helped Ghana's trade surplus almost double, widening from $4.53bn in March to $8.81bn in June.

Rising imports offset gains

However, economists say the higher export earnings were largely offset by a surge in imports and other foreign exchange outflows.

Total imports increased from $3.99bn in March to $9.48bn by June.

Oil imports accounted for a substantial share of the increase, rising from $1.31bn to $3.35bn, while non-oil imports climbed from$2.69bn to $6.14bn.

The figures suggest much of the foreign exchange generated through exports was used to finance higher import demand and meet external financial commitments, limiting any build-up in the country's reserves.

Gold reserves provide support

One bright spot was the continued accumulation of gold by the Bank of Ghana.

The value of Ghana's gold reserves increased from $3bn to $3.6bn, while physical holdings rose from 20.8 tonnes to 24.4 tonnes.

The central bank has expanded its domestic gold purchase programme in recent years as part of efforts to strengthen reserve assets and reduce reliance on traditional foreign currencies.

Pressure on the cedi

Although Ghana still maintains reserve levels that provide five months of import cover, analysts say a shrinking reserve buffer could increase pressure on the cedi if demand for foreign currency remains elevated.

Foreign exchange reserves enable central banks to intervene in currency markets during periods of volatility and help maintain confidence among investors and international lenders.

With export earnings remaining strong, attention is now likely to focus on whether policymakers can translate Ghana's commodity windfall into stronger reserve accumulation while containing import growth and safeguarding macroeconomic stability.