Broad money supply growth accelerates to 28.5% in June - Report

Annual growth in Ghana’s broad money supply (M2+) accelerated significantly to 28.5 percent in June 2026, compared with 15.6 percent in the corresponding period of 2025, driven by stronger foreign asset accumulation and growth in domestic assets.

According to the Bank of Ghana’s July 2026 Monetary Policy Report, the sharp expansion in liquidity reflected increased contributions from both Net Foreign Assets (NFA) and Net Domestic Assets (NDA).

The contribution of NFA to total liquidity growth rose to 14.8 percent in June 2026, from 9.5 percent in June 2025, reflecting an increase in foreign asset accumulation within the banking sector.

The contribution of NDA also strengthened considerably, rising to 13.7 percent from 6.1 percent over the same period.

The central bank attributed the stronger growth in domestic assets largely to increases in Net Claims on Government (NCG) and credit to the private sector, including public enterprises.

The contribution of NCG to NDA growth increased to 4.9 percent in June 2026, compared with a negative contribution of 3.0 percent a year earlier. This was partly due to increased holdings of Government of Ghana securities by the banking sector.

Credit to the private sector and public enterprises also recorded a significant increase, contributing 11.3 percent to NDA growth, compared with 2.1 percent in June 2025.

The composition of broad money growth also showed continued strength in deposit mobilisation. The contribution of demand deposits increased to 11.8 percent in June 2026 from 8.1 percent a year earlier.

Foreign currency deposits (FCDs) also made a strong positive contribution to money supply growth, accounting for 5.9 percent, compared with a negative contribution of 6.3 percent in June 2025.

The Bank of Ghana attributed the turnaround partly to the discontinuation of the dual currency Cash Reserve Ratio policy.

However, the contribution of currency outside banks declined to 3.6 percent from 4.7 percent, indicating relatively subdued demand for cash holdings.

Similarly, the contribution of savings and time deposits to broad money growth fell to 7.2 percent in June 2026 from 9.2 percent during the same period in 2025.

The figures point to a changing composition of liquidity within the economy, with stronger growth in bank deposits, foreign assets and credit, while demand for physical cash and growth in savings and time deposits moderated.

The sharp rise in broad money supply will remain an important indicator for monetary policy, as the Bank of Ghana continues to monitor liquidity conditions and their potential implications for inflation, credit expansion and overall macroeconomic stability