Ghana’s Reserves Improve Slightly To $2.62Bn; Balance Of Payment Remains Negative

Ghana’s net international reserves improved slightly to $2.62 billion, about 2.8 months of import cover in February 2023, the Bank of Ghana has revealed in its March 2023 Summary of Economic and Financial Data.

This is from the $2.24 billion recorded in December 2022, about 2.7 months of import cover.

The country’s Balance of Payment at the end of February 2023 also stood at a deficit of $3.63 billion, approximately 5% of Gross Domestic Product.

This was as a result of a significant decline in the  Capital and Financial Account Balance which stood at a deficit of $2.17 billion in December 2022, compared with a surplus of $.3.30 billion in December 2021.

The negative Capital and Financial Account Balance was a result of net portfolio of investments outflow of $2.05 billion in December 2022.

The Current Account Balance also stood at a deficit $1.516 billion in December 2023, approximately 2.1% of GDP.

Net international reserves have been declining from $6.07 billion in January 2022, about 4.4 months of import cover, largely due to the selling of investments by foreign investors.

 

Source: Myjoyonline