hana’s net international reserves fell from $8.21 billion in August 2021 to $7.32 billion in October 2021, about 4.9 months of import cover, data from the Bank of Ghana has revealed.
The reserves however stood at $7.25 billion in September 2021, equivalent to 4.9 months of imports cover.
The decline in the reserves may be due to some of the reserves used to shore up the cedi’s stability against the dollar, whilst some were used to finance the 2021 Budget.
According to the figures from Bank of Ghana on External Sector Developments, the Heritage and Stabilisation Funds in the first 10 months of this year stood at $923.6 million.
The country’s reserves experienced a significant growth because of boost in oil prices, whilst cocoa and gold prices have also been favourable so far this year. This follows a rebound in the global economy.
Crude oil took over from cocoa in second position, as $3.19 billion came in as proceeds from the export commodity in the first 10 months of this year. The growth in oil exports is due to the higher price of crude oil which is presently hovering around $80 per barrel.
Cocoa exports brought in $2.41 billion in October 2021. Importantly, cocoa price has also been favorable on the world market in 2021.
For imports, oil imports accounted for $2.11 billion, whilst non-oil imports totaled $9.06 billion.
The current account balance also stood at -$1.88 billion, about -2.6% of GDP in September 2021.
However, the overall balance of payment stood at $1.68 billion in the first nine months of this year, about 2.4 months of GDP.