Research firm, IC Research, is warning that the lingering debt settlements of government such as SWAPs and multilateral debts pose downside risk to the country’s foreign exchange (FX) reserves in the near-term.
This it said should however be mitigated by multilateral supports and cocoa loan syndication.
Ghana’s Net International Reserves fell to $2.3 billion in June 2023, about 1.1 months of import cover.
This comes after the International Monetary Fund (IMF) released $600 million as the first tranche of a bailout package to revive the Ghanaian economy.
But IC Research said despite the country’s current account position improving in the first-half of 2023, there are still challenges.
“Notwithstanding the improvements in the external accounts in addition to the programme-related inflows of $600 million from the IMF, we observed a 15.6% month-on-month drop in the Net International Reserves to $2.3 billion in June 2023 (1.1 months of import cover). The Governor attributed this drawdown to liability settlements such as FX SWAP maturities”.
“While the Governor’s indication that the Central Bank is ahead of target on its Gold-for-Reserves purchase programme is re-assuring, we view the lingering liability settlements (such as SWAPs and multilateral debts) as downside risk to FX reserves in the near-term. This should however be mitigated by multilateral supports and cocoa loan syndication”, it added.
Ghana’s current account balance reached a surplus of $849.2 million in the first-half of 2023 as against a deficit of $1.1 billion in the first half of 2022.
The improved current account balance was aided by a 22.5% year-on-year growth in inward remittances to $2.4 billion and the ongoing suspension of external debt service.
Latest Stories
-
DAMC, Free Food Company, to distribute 10,000 packs of food to street kids
6 minutes -
Kwame Boafo Akuffo: Court ruling on re-collation flawed
26 minutes -
Samuel Yaw Adusei: The strategist behind NDC’s electoral security in Ashanti region
28 minutes -
I’m confident posterity will judge my performance well – Akufo-Addo
40 minutes -
Syria’s minorities seek security as country charts new future
1 hour -
Prof. Nana Aba Appiah Amfo re-appointed as Vice-Chancellor of the University of Ghana
1 hour -
German police probe market attack security and warnings
1 hour -
Grief and anger in Magdeburg after Christmas market attack
1 hour -
Baltasar Coin becomes first Ghanaian meme coin to hit DEX Screener at $100K market cap
2 hours -
EC blames re-collation of disputed results on widespread lawlessness by party supporters
3 hours -
Top 20 Ghanaian songs released in 2024
3 hours -
Beating Messi’s Inter Miami to MLS Cup feels amazing – Joseph Paintsil
3 hours -
NDC administration will reverse all ‘last-minute’ gov’t employee promotions – Asiedu Nketiah
3 hours -
Kudus sights ‘authority and kingship’ for elephant stool celebration
3 hours -
We’ll embrace cutting-edge technologies to address emerging healthcare needs – Prof. Antwi-Kusi
4 hours