Ghana’s Gross International Reserves at the end of June, increased to cover 3.1 months of imports, according to the latest economic and financial data from the Bank of Ghana. This marks an improvement from 2.9 months recorded at the end of May this year and 2.5 months in June 2023. The current level meets the minimum requirement stipulated under the International Monetary Fund (IMF) programme.
However, the Net International Reserves at the end of June stood at 2.1 months of import cover, higher than the 1.9 months recorded in May 2023 and significantly up from 1.1 months in June 2023. The recent disbursement of $360 million from the IMF has contributed to the increase in reserves. Despite this, the 3.1 months of cover does not provide the Central Bank with ample room to use a significant portion to stabilize the depreciating cedi.
The BoG provided some foreign exchange on the interbank market on Wednesday but that was not enough to stop the cedi from losing more value.
June 2024 saw mixed performance in Ghana’s external sector. Cocoa prices experienced a substantial year-to-date growth of 113.0%, while Brent crude oil and gold prices increased by 7.4% and 14.2%, respectively. The country also recorded a positive trade balance of US$628.33 million in June 2024, with total exports reaching US$1.76 billion and total imports at US$1.14 billion.
This boost in reserves is critical as Ghana continues to navigate economic challenges and seeks to strengthen its financial position. The increase, although modest, reflects ongoing efforts to stabilize the economy and improve foreign exchange reserves amidst global economic fluctuations.
