The Majority Caucus in Ghana’s Parliament has praised the Bank of Ghana for boosting international reserves to $14.5 billion by February 2026, a record high that marks a significant increase from $9.1 billion in 2024 and $13.8 billion at the end of 2025. The central bank also cut its policy rate from 27 percent to 14 percent, pushing lending rates down from 30.2 percent to 17.7 percent and improving credit access for businesses and households.
Public debt declined from 62.5 percent of GDP to 45 percent, while the economy grew 6 percent in 2025, above forecasts, despite global challenges including the Iran war and elevated energy prices. The Bank of Ghana posted a net loss of GHC15.6 billion in 2025, compared with GHC9.4 billion in 2024, driven by valuation losses from a stronger cedi. Officials said reforms improved stability and made borrowing cheaper, strengthening investor confidence in Ghana’s economic outlook and supporting fiscal recovery efforts.
From a fiscal and monetary policy perspective, Ghana’s improved reserves provide a buffer against external shocks, reducing vulnerability to sudden capital outflows and currency pressures. Lower interest rates stimulate private sector investment and consumption, supporting growth in manufacturing, agriculture, and services. However, the central bank’s losses, though largely unrealised valuation adjustments, highlight the balance sheet risks associated with exchange rate volatility. Parliament’s endorsement signals political support for the central bank’s tightening-then-easing cycle, which has successfully tamed inflation while preserving growth. The combination of lower debt, higher reserves, and strong GDP growth positions Ghana as one of West Africa’s more resilient economies, though sustained progress requires continued fiscal discipline and structural reforms.
