Ghana gross international reserves position grew strongly further as it hit $11.4 billion in the first eight months of this year, data from the Bank of Ghana has revealed.

This is equivalent to 5.2 months of import cover.

The net reserves however stood at $8.21 billion as of the end of August 2021. This is lower than $8.23 billion registered in May 2021.

The country’s gross reserves position in June 2021 and July 2021 stood at $11.02 billion and $10.72 billion respectively.

According to the figures from Bank of Ghana on External Sector Developments, the Heritage and Stabilisation Funds in the first eight months of this year was $828.3 million

The country’s reserves experienced a significant growth because of boost in exports as oil and cocoa prices have shot up significantly since the beginning of this year, following a rebound in the global economy.

Trade balance hits a surplus of $874.8m  

Meanwhile, the country’s Trade Balance stood at a surplus of $874.8 million in August 2021, about 1.2% of Gross Domestic Product.

Total Exports as of the end of August 2021 was however $9.85 billion, whilst imports stood at $8.98 billion. Imports have started picking up because of the rebound of the global economy.

In terms of the traditional export commodities, gold exports for the first eight months of 2021 stood at $3.42 billion, whilst cocoa inched up to $2.10 billion. Crude oil exports was estimated at $2.43 billion, better than the same period last year.

Also, inward remittances stood at $2.15 billion in June 2021. This is compared with $1.03 billion in March this year.

However, the balance of payment stood at a deficit of $926 million in June 2021.

Foreign Direct Investments was also estimated at $954.2 million in first six months of 2021.

Ghana’s international reserves to go up 16.8% to $9.5bn in 2021 – Report

Ghana’s net international reserves excluding gold is expected to grow by 16.8% this year to $9.5 billion.

This is a revision of an earlier forecast by Fitch Solutions, which pegged the end-year reserves at $8.8 billion.

According to the research arm of ratings agency, Fitch, the reserves will be equivalent to 4.2 months of import cover.

This means the country will have a little above four months to take care of imports with the foreign exchange reserves when there is a shock.