Ghana’s reserves hit US$9.3bn

Enterprise Information of Monday, 27 Could 2019

Supply: classfmonline.com

2019-05-27

The GIR has risen to US$9.9 billion, equal to five.1 months of import cowl

Ghana’s Gross Worldwide Reserves (GIR) has shot up by 32.eight per cent as of April 2019 in comparison with the final determine recorded on the finish of December 2019 resulting from beneficial costs of the nation’s essential exports to the worldwide market.

“As of finish of April 2019, the Gross Worldwide Reserves was US$9.three billion (four.7 months import cowl), largely on account of energy-related debt funds and better obligations related to externally held home debt funds,” Governor of the Financial institution of Ghana (BoG), Dr Ernest Addison mentioned at a press convention on Monday, 27 Could 2019 after a Monitory Police Committee (MPC) assembly.

The GIR has risen to US$9.9 billion, equal to five.1 months of import cowl as of the tip of March 2019 from US$7.zero billion, which was equal to three.6 months of import cowl on the finish of December 2018.

Nevertheless, collected money owed within the power sector scrapped away US$600 million of the reserves in April.

Dr Addison defined that the rise was on account of value actions of oil, gold and cocoa.

He mentioned Brent crude costs went up by 24.three per cent on a year-to-date foundation to a mean of US$71.7 per barrel in April 2019. It’s anticipated to commerce across the identical value by the tip of the second quarter.

Gold costs on the worldwide commodities market additionally inched up on the common by 2.eight per cent on a year-to-date foundation to settle at US$1,286.2 per tremendous ounce in April “due primarily to perceived market dangers and rising uncertainty”.

Cocoa, which is the primary money crop of the West African nation, loved beneficial circumstances fetching premium costs.

On a year-to-date foundation, common cocoa costs have risen by 5.1 per cent to a mean of US$2,370.four per tonne in April 2019.

A rise within the manufacturing of gold and crude oil coupled with value hikes “alongside a comparatively decrease import invoice had a constructive impact on the commerce steadiness”.

The nation, subsequently, recorded a commerce surplus of US$1.three billion, representing 1.9% of Gross Home Product (GDP) for the primary 4 months of 2019 in contrast with a surplus of US$1.zero billion representing 1.6% of GDP in the identical interval of 2018.

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