Ghana’s economy is showing impressive signs of resilience, with its Gross International Reserves (GIR) reaching a remarkable $7.5 billion as of August 2024, according to the latest Bank of Ghana Summary of Economic and Financial Data.
This growth from $5.05 billion in August 2023 and $6.68 billion in June 2024 before hitting its current level demonstrates the country’s efforts to bolster its foreign exchange reserves, supporting currency stability and providing liquidity for external obligations.
The import cover has also increased to 3.4 months from 3.1 months in June, indicating Ghana’s enhanced ability to safeguard against external shocks such as fluctuating commodity prices or global market disturbances.
Net International Reserves (NIR) which includes liabilities and encumbered assets, have also shown significant improvement. NIR rose to $ 4.9 billion by August 2024, a marked increase from $ 2.2 billion a year prior. This improvement signals Ghana’s strengthening liquid asset base, boosting confidence among investors and global markets.
The reserves act as a cushion against balance of payment pressures and exchange rate volatility, providing the government with necessary resources to intervene in the forex market when needed. This could also have positive implications for inflation control, as it strengthens the central bank’s ability to manage currency depreciation and import costs.
Ghana’s progress is particularly notable given the global economic uncertainties. The country’s balance of payments is improving, and the reserves serve as a crucial tool in mitigating external vulnerabilities.
Meanwhile, the data from the Central Bank revealed Ghana’s export by the end of August stood at $12.9 billion while import stood at $10.1 billion, resulting in a trade surplus of about $2.8 billion, which is higher than the $1.85 billion recorded in June this year.
Source:thestreetjournal.com