The Bank of Ghana spent GH¢986.88 million printing currency in 2024, a 47% increase from the previous year’s GH¢354.53 million expenditure, according to the central bank’s year-end financial reports.
This surge accompanies a 70.5% growth in physical cash circulating outside banks, which reached GH¢64.1 billion by December 2024.
Economists attribute the rising demand for cash to persistent inflation and economic uncertainty, with narrow money (M1) expanding 38.2% and broad money (M2) growing 33.7% over the year. “The preference for liquidity during volatile periods naturally increases currency demand,” noted a senior banking analyst familiar with the central bank’s operations. The trend persists despite Ghana’s ongoing digital currency initiative, particularly in the cash-dependent informal sector that accounts for significant economic activity.
The increased printing costs come as the Bank of Ghana continues to operate with negative equity of GH¢61.32 billion, largely resulting from the 2022 Domestic Debt Exchange Programme. While reserve money grew 47.8% to GH¢130.5 billion under revised cash reserve requirements, the disproportionate rise in physical currency highlights challenges in transitioning to digital payments. Banking sector observers suggest the cash surge may moderate as inflation stabilizes and digital payment infrastructure expands, though the timeline remains uncertain given current economic pressures.
