• About
  • Advertise
  • Privacy Policy
  • Contact
Monday, May 16, 2022
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News
No Result
View All Result

Gross International Reserves Down By 1.5% In First Two Months Of 2022

March 29, 2022
Stephen KotochiebyStephen Kotochie
in Economy, Sub Top Stories1
0
Gross International Reserves Down By 1.5% In First Two Months Of 2022

Ghana’s Gross International Reserves were down by US$147.2 million in the first two months of the year, representing 1.5 percent decline in the country’s reserves when compared to the figure recorded at the end of December last year.

Data from the Bank of Ghana show that Gross International Reserves at the end of February 2022 stood at US$9,548.0 million, providing cover for 4.3 months of imports of goods and services. This compares with US$9,695.2 million, equivalent to 4.4 months of import cover at End-December 2021.

The decline in Gross International Reserves may not have provided much cover for the local currency which faced increased volatility in the foreign exchange market during the first few months of the year.  

RelatedPosts

Introduce Cash Transfer Scheme To Cushion Citizens Against Rising Cost of Living –  Dr. Opoku

ISSER Urges Gov’t to Bring Back Tollbooths As a Fiscal Measure

Collateralizing E-levy Will Create Problems for Future Governments- Prof Bokpin

Official Statistics from the Bank of Ghana show that cumulatively, the Ghana Cedi depreciated by 14.6 percent against the US dollar, and 11.6 percent each against the Pound Sterling and Euro, from the beginning of the year up to March 15, 2022. At the same period last year, the Ghana cedi appreciated by 0.6 percent and 3.4 percent against the US Dollar and the Euro, and depreciated by 1.0 percent against the Pound Sterling.

Explaining the causes of the intense pressure the Cedi is currently facing, the Bank of Ghana stated that it was due to “demand pressures from offshore secondary market activities, corporate sectors, oil importers, and weakened sentiments due to the downgrade by the rating agencies”. These factors, according to BoG, tightened forex liquidity which was partly eased by the regular foreign exchange auctions and inflows from mining and remittances.

Strong performance last year

Despite a faulty start this year, Ghana’s gross international reserves recorded an impressive run in 2021 as compared to developments in 2020.  Gross international reverses at the end of January 2021 was US$8,835.0 million which accounted for 4.1 months of import cover but rose steadily to US$11,026.9 million (5.0 months of import cover) in June 2021.

The country’s Reserves continued its impressive run in the first two months of the second half of 2021, rising to US$11442.5 million in August, the highest value recorded in the past one year and provided 5.2 months of import cover for the local currency as at that time. The strong build-up of reserves in August was supported by the US$1 billion Special Drawing Rights (SDRs) that Ghana received from the IMF.

Z

It however, declined by US$748.1 million in September which saw the import cover also dwindling to 4.9 months. In the last quarter of 2021, the country’s reserves rose significantly to US$10,783.0 million, equivalent to 4.9 months of import cover in October but could not maintain the momentum throughout the quarter, falling to US$9,695.2 million in December 2021. Correspondingly, the import cover dropped to 4.4 months at End-December 2021.  

A strong reserve build-up is needed to provide some buffer to the local currency which is still under some demand pressures from commerce, manufacturing, and the energy sectors as economic activity gradually recovers.

The current import cover of 4.3 months is still below the ideal value of 8 to 10 months which is essential for a stable currency. This means a further build-up of reserves in the rest of the year could provide additional support to the Ghana Cedi to avoid precipitous depreciation against its major trading partners in the course of the year.  

READ ALSO: Frontiers Healthcare Services Ltd made Supernormal Profit of US$130million- Ablakwa

Tags: Bank of GhanadeficitDepreciationGhana NewsGross International Reserves

Send your news stories to [email protected] and via WhatsApp on +233543050759.

Related Posts

Introduce Cash Transfer Scheme To Cushion Citizens Against Rising Cost of Living - Dr. Opoku
Economy

Introduce Cash Transfer Scheme To Cushion Citizens Against Rising Cost of Living –  Dr. Opoku

May 16, 2022
Bring Back the Road Tolls Now- Economist Charges Government
Economy

ISSER Urges Gov’t to Bring Back Tollbooths As a Fiscal Measure

May 15, 2022
Collateralizing E-levy Will Create Problems for Future Governments- Prof Bokpin
Economy

Collateralizing E-levy Will Create Problems for Future Governments- Prof Bokpin

May 14, 2022
Ghana: US$751.5 Million AfDB-Sponsored Projects Underway
Economy

Ghana:US$751.5 Million AfDB-Sponsored Projects Underway

May 14, 2022
I Have Given Up All Hope In This Government — Economist
Economy

I Have Given Up All Hope On This Government — Economist

May 13, 2022
Ghana Will Not Seek IMF Support - Ken Ofori Atta
Economy

Ghana Will Not Seek IMF Support – Ken Ofori-Atta

May 12, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Frontiers Healthcare Services Ltd made Supernormal Profit of US$130million- Ablakwa

Next Post

Health Expert Encourages Wearing Of Face Mask

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
McDonald’s to Exit Russia for Good After 30 Years
USA

McDonald’s to Exit Russia for Good After 30 Years

by Edem NyonatorMay 16, 2022
Ashantigold SC, Inter Allies FC Demoted To Division Two For Match Fixing
Sports

Ashantigold SC, Inter Allies FC Demoted To Division Two For Match Fixing  

by Stephen KotochieMay 16, 2022
Fidelity Bank launches ‘Yenko Dubai’ Promo for its agents
Banking

Fidelity Bank launches ‘Yenko Dubai’ Promo for its agents

by Stephen M.CMay 16, 2022
We Need to Identify Ways to Make up for Potential Future Gaps- FAO
Asia

We Need to Identify Ways to Make up for Potential Future Gaps- FAO

by Deborah Dzifah TamakloeMay 16, 2022
Nkoranza Shooting: Albert Was Targeted- Nkoranza MP
General News

Nkoranza Shooting: Albert Was Targeted- Nkoranza MP

by Priscilla KorantengMay 16, 2022
Nollywood actress Dorcas Shola-Fapson(DSF) has been called out by the stylist who dressed her for the just-ended Africa Movies Viewers Choice Awards.
Entertainment

Dorcas Shola-Fapson And Stylist Drag Each Other Over AMVCA Dress Debts

by Dorcas DamehMay 16, 2022
McDonald’s to Exit Russia for Good After 30 Years
Ashantigold SC, Inter Allies FC Demoted To Division Two For Match Fixing
Fidelity Bank launches ‘Yenko Dubai’ Promo for its agents
We Need to Identify Ways to Make up for Potential Future Gaps- FAO
Nkoranza Shooting: Albert Was Targeted- Nkoranza MP
Nollywood actress Dorcas Shola-Fapson(DSF) has been called out by the stylist who dressed her for the just-ended Africa Movies Viewers Choice Awards.
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In