Ghanaians ditch cash for bank transactions – BoG report
By: Rebecca Okine
Ghanaians are increasingly turning to banks and digital platforms for their financial transactions, according to the Bank of Ghana’s latest Economic and Financial Data report for April 2025.
The report shows that currency held outside the banking system has dropped sharply to 20%, the lowest level in over a year. This marks a significant decline from October 2024, when cash outside banks peaked at over 38%.
The shift comes as Reserve Money growth, the total supply of money in the economy, slows to 38%, down from more than 100% just six months ago. Analysts interpret this as a sign of tighter liquidity and more disciplined financial management across the economy.
The data also points to growing public confidence in the formal banking sector, with increasing numbers of individuals and businesses opting to deposit money in bank accounts or use digital wallets rather than hold onto physical cash.
The trend has been gradually building over the past year, with the most dramatic changes observed after October 2024. Experts suggest this could be influenced by central bank policies and shifting consumer habits in favor of digital finance. BoG’s findings reflect an evolving financial landscape where trust in banking services is deepening and cash is losing its dominance in everyday transactions.
