Developments in August 2024 showed a decline in total liquidity relative to the corresponding period in 2023, the Bank of Ghana has said.

Annual growth in M2+ declined to 37.1 per cent in August 2024, relative to 40.8 per cent in August 2023, due to a moderation in the pace of growth in net domestic assets of depository institutions. Governor Ernest Addison told journalists on Friday, 27 September 2024 while briefing them about the Monetary Policy Committee’s decision to cut the policy rate from 29 per cent to 27 per cent.

In contrast, Dr Addison said net foreign assets of depository institutions increased significantly.

This reflects a net build-up in foreign assets.

The decline in broad money supply was reflected in a slower pace of growth in demand deposits, savings and time deposits, and foreign currency deposits, Dr Addison said.

He noted that growth in currency held by the public, however, increased over the same comparative period.