Ghana’s banking system received a fresh liquidity boost in April 2026 as reserve money climbed by 9 billion cedis from the previous month, Bank of Ghana (BoG) data shows.
Reserve money rose from 141.1 billion cedis in March to 150.1 billion cedis in April, reflecting a higher volume of cash in circulation and increased commercial bank deposits held at the central bank. The measure forms the foundation of liquidity within the financial system and influences the capacity of banks to support settlement operations and broader short-term financing activity. Its rise signals easing liquidity conditions and suggests banks had more funds available to manage day-to-day transactions and interbank obligations during the month.
The expansion extended across all broader monetary aggregates. Narrow money (M1), which captures cash in circulation and demand deposits, increased from 222.6 billion cedis in March to 228.8 billion cedis in April. Broad money (M2), which adds savings and time deposits to the M1 base, rose from 329.5 billion cedis to 338.5 billion cedis over the same period. Total liquidity (M2+), the most comprehensive measure and one that incorporates foreign currency deposits, expanded from 406.1 billion cedis to 417.4 billion cedis, pointing to a general increase in money holdings across the financial system.
Despite the improvement in liquidity across all these measures, growth in private sector credit remained notably restrained. Credit to businesses and households edged up only slightly, from 109.4 billion cedis in March to 110.9 billion cedis in April. The contrast between abundant system liquidity and subdued lending suggests that while banks are better resourced, appetite for credit extension to the private sector has not kept pace with the available funding base.
Net domestic assets increased significantly over the period, driven in part by higher claims on government. This reflects continued reliance on the domestic banking system to finance public sector needs, a trend that can crowd out private sector borrowers if it persists.
On the external side, net foreign assets declined from 122.7 billion cedis in March to 116.7 billion cedis in April, suggesting some softening in external buffers even as domestic conditions improved. The divergence between rising domestic liquidity and shrinking net foreign assets is a dynamic the central bank will likely monitor closely in the coming months.
Taken together, April’s data presents a banking sector with growing liquidity and strengthening monetary aggregates, but one where caution still governs the translation of those resources into active credit for households and businesses.
