Currency held outside banks increased by 4% in August 2026, according to the Bank of Ghana’s latest report, while the demand for deposits in savings and checking accounts declined over the same period. The report revealed that currency outside banks rose to contribute 4.0% of money supply growth in August 2026, up from 2.7% in August 2025.
Demand deposits, which include call and check accounts, saw their contribution to money supply shrink to 7.8% in August 2026 from 10.6% a year earlier. Savings and time deposits also dropped slightly, from 7.3% to 7.0%, reflecting a decrease in traditional deposit holdings.
Foreign currency deposits (FCDs) reversed their previous trend, increasing their share to 1.6% in August 2026 from negative 4.0% in August 2025. The Bank of Ghana linked this shift to the discontinuation of the dual currency Cash Reserve Ratio (CRR) policy, which had previously impacted foreign currency holdings in the banking system.
Broad money supply, measured as M2+, expanded by 20.4% in August 2026, up from 16.6% in August 2025. This increase was driven by a significant rise in Net Domestic Assets (NDA). In contrast, Net Foreign Assets (NFA) grew at a slower pace, contributing less to total liquidity growth.
The Bank of Ghana reported that the contribution of NFA to total liquidity dropped marginally to 7.2% in August 2026 from 8.8% the previous August. The moderation in foreign asset accumulation by the banking sector influenced this decline.
The changes in deposit patterns suggest a shift in how individuals and businesses manage their money. While currency holdings outside banks rose, the decline in demand deposits and savings may indicate a preference for cash or alternative forms of holding money.
The Bank of Ghana has not commented on the potential impacts of these shifts on monetary policy or inflation rates. The increased cash holdings outside banks could affect liquidity management within the financial system.
The report’s data covers the twelve months leading up to August 2026, providing a snapshot of recent monetary trends in Ghana’s banking sector.
According to Joy Online.
