Audio By Carbonatix
The annual growth in broad money supply (M2+) moderated to 22.2% in April 2026, from 26.7% percent in April 2025, the Bank of Ghana has disclosed.
This reflected a slowdown in liquidity expansion relative to the corresponding period last year.
According to its May 2026 Monetary Policy Report (MPR), the moderation in broad money growth was largely driven by a significant decline in the contribution of Net Foreign Assets (NFA). However, this was partly offset by stronger growth in the Net Domestic Assets (NDA).
The contribution of NFA to overall liquidity growth declined to negative 5.2 percent in April 2026, compared with a positive contribution of 36.1 percent in April 2025.
This development primarily reflected valuation effects associated with the appreciation of the cedi in 2025, which lowered the domestic currency value of foreign currency-denominated assets.
Additionally, the rate of foreign asset accumulation in the banking sector was relatively subdued compared with the strong external inflows recorded a year earlier, further dampening NFA’s contribution to money supply growth.
In contrast, the Bank of Ghana said the contribution of NDA to M2+ growth increased markedly to 27.4% in April 2026 from negative 9.4% in April 2025.
The stronger contribution of NDA was largely driven by increases in Net Claims on Government (NCG), Other Items net (OIN) and claims on the private sector. The contribution of NCG to NDA growth was 15.5% in April 2026, compared with a contribution of negative 14.5% in April 2025, reflecting in part increased banking sector holdings of Government of Ghana (GoG) securities.
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