The Minister for Finance, Hon Mohammed Amin Adam has allayed fears about concerns over the country’s foreign reserves, stating the country has enough for traders.
Per data he presented to the country on May 24, gross international reserves stand at $6.2 billion covering 2.7 months of import cover as of the end of February 2024.
Compared to same period in 2022, the Minister stated, “On that comparative basis we can say that the cedi is still strong. We expect the stability to improve into the medium term as we complete debt restructuring, as we make progress on fiscal consolidation and as we improve on our reserves over the medium term.”
He said some measures put in place such as fiscal consolidation process through rationalising spending and enhancing revenue mobilisation; intensification of the Gold for Oil Programme and appreciate FX interventions; and the BoG the Gold Reserve Programme are expected to improve the reserves.
Additionally, he said some ¢2.323 billion loans expected in the country before the end of the year would have significant impact on the reserves.
“I wish to assure Ghanaians that there is enough Foreign Exchange Supply on the market. Hence there is no need to rush to buy Forex. We will continue to ensure that the supply is sustained and increased,” he added.
He further attributed the recent fall in the value of the cedi to the strengthening of the US dollar against major trading currencies across the world as well as what he called seasonal forex demand including elevated demands from corporate institutions.
Another factor he cited was circulation of more money in the market, a development he said emanates from the payment of contractors and Independent Power Producers (IPPs). According to him, $49 billion has been spent in the payment of contractors and $400 million to IPPs.