The county’s Gross International Reserves (GIR) rose from $7.83 billion in September to $7.92 billion in November, 2024, data from the Bank of Ghana (BoG), has said.
It said the country from the beginning of the year to end-September 2024, build-up and accumulated reserves of over US$1.91 billion pushing reserves up to $7.83 billion (equivalent to 3.5 months of import cover) and further to $7.92 billion in November.
That, the BoG stated, had improved the country’s external position remarkably this year.
A statement issued by the BoG after the 121st regular meeting of the Monetary Policy Committee (MPC) in which the Committee maintained the policy rate at 27 per cent on Friday, noted that the improved external position was supported by a higher current account surplus and reduction in net financial outflows, leading to a strong external reserves build-up.
“The current account surplus increased to $2.2 billion in the first nine months of the year, compared with a surplus of $912 million over the corresponding period in 2023,” the statement revealed.
It said the strong current account surplus was supported by increased gold and crude oil exports as well as robust remittance inflows.
“This development, together with a lower net outflow of $414 million in the capital and financial account (relative to a net outflow of $1.4 billion in 2023) contributed to an improved balance of payments position in the first three quarters of the year,” the statement indicated.
Furthermore, the BoG stated that from the beginning of the year to end-September 2024, a reserve build-up of over $1.91 billion was accumulated.
It said the strong external sector performance was boosting confidence in the foreign exchange market, with the Ghana cedi recording appreciable gains.
“Since end-October to November 2024, the Ghana cedi has recorded respective appreciations of 6.0 per cent, 7.6 per cent and 9.1 per cent against the dollar, the British pound and the euro, bringing the year-to-date depreciation of the Ghana cedi against the dollar, the British pound and the euro to 22.7 per cent, 22.4 per cent, and 19.1 per cent, respectively,” the BoG explained.
Additionally, the MPC noted that the BoG would continue to monitor the global condition in the coming months for appropriate policy to support the stability of the local currency.
The statement said in the view of the Committee, while global economic conditions remained favourable, the strength of the U.S economy coupled with a strong U.S dollar and the possibility of a resurgence in global energy and food prices arising from trade protectionism, geopolitical conflicts, and extreme weather conditions would be monitored closely for policy responses to ensure stability in the economy.
Moreover, the statement disclosed thtat on the domestic economy, the high frequency indicators point to continued improvement in economic activity.
“In the third quarter, the Bank’s high frequency real sector indicators pointed to a sustained pick-up in economic activity. The updated real Composite Index of Economic Activity recorded an annual growth of 2.2 per cent in September 2024, compared to a contraction of 0.4 per cent in the corresponding period of 2023,” the statement outlined.
The MPC indicated that the major drivers of the improvement in economic activity included increased port activity, households and firms consumption of goods and services, construction activities, credit to the private sector, and higher tourist arrivals.
KINGSLEY ASARE
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