Ghana’s Current Account Hits US$3.8bn, Anchoring Cedi Stability
By Praisebell Rosemond Larbi
Ghana’s external sector recorded one of its strongest performances in recent years, with the current account posting a remarkable surplus of US$3.8 billion for the first nine months of 2025. This represents a dramatic improvement from the US$553.6 million surplus recorded over the same period in 2024, underscoring the significant gains the economy has made in foreign exchange inflows, export earnings and capital movements.
The latest Monetary Policy Committee (MPC) report of the Bank of Ghana attributes the robust current account position to a substantial expansion in the country’s trade surplus, which surged to US$7.5 billion by the end of September 2025. The Central Bank noted that the jump in the trade balance was driven largely by strong export revenues from gold and cocoa, two of Ghana’s most important foreign exchange-earning commodities.
Gold exports, benefiting from firm global prices and increased production, provided the bulk of the gains, while cocoa earnings were supported by higher international prices and improved crop output following favourable weather patterns and enhanced market access. The MPC observed that these developments significantly strengthened Ghana’s merchandise trade performance, easing pressure on the balance of payments.
In addition to commodity exports, private inward transfers, largely remittances from Ghanaians abroad remained a major pillar of the external accounts. According to the report, private transfers reached US$6.0 billion by the close of the third quarter, reflecting sustained confidence in the domestic economy and the resilience of diaspora support. These inflows have continued to play a critical role in shoring up household liquidity, supporting consumption, and bolstering the country’s foreign exchange position.
The Bank of Ghana further indicated that the strong current account surplus, combined with favourable outcomes in the capital and financial accounts, culminated in an overall balance of payments surplus of US$1.8 billion for the period under review. This robust external sector performance allowed the Central Bank to accumulate foreign reserves, which climbed to US$11.4 billion in October 2025, equivalent to 4.8 months of import cover.
The MPC stated that reserve accumulation efforts would continue for the remainder of the year, with projections pointing to a further increase in gross international reserves by year-end. The Bank noted that the healthy reserve buffer has provided a strong cushion for the local currency, helping to stabilise exchange rate dynamics throughout 2025.
This favourable external position has translated directly into exchange rate resilience. As of 21 November 2025, the Ghana cedi had appreciated by 32.2 percent against the US dollar, reversing several years of currency volatility and depreciation pressures. The Central Bank attributed this performance to strong foreign exchange inflows, disciplined monetary management, and improved market sentiments.
Analysts say the significant improvement in Ghana’s external balances sends a strong signal about the country’s ability to rebuild credibility with global markets, attract capital inflows and manage exchange rate stability. They add that sustained export inflows, particularly from commodities and remittances, could help anchor macroeconomic stability going into 2026, provided that global price conditions remain favourable and domestic production continues to expand. The Bank of Ghana concluded that the outlook for the external sector remains positive, supported by ongoing reserve accumulation and improved investor confidence. The Central Bank emphasised that safeguarding these gains will require prudent fiscal policy, continued export growth, and measures to protect the cedi’s newfound stability.
