Ghana’s Gross international reserves, excluding pledged assets and petroleum funds, reflected a significant build-up of US$2.2 billion at the end of December 2023 to stand at US$3.7 billion, Bank of Ghana Governor, Ernest Addison.

Dr Addison told journalists on Monday, January 29, 2024 following the Monetary Policy Committee meetings that the “build-up was driven mainly by the gold for reserves programme and unwinding of short-term liabilities”.

However, he noted that “the stock of Gross International Reserves ended the year at US$5.9 billion, enough to cover 2.7 months of imports of goods and services, from the stock position of US$6.3 billion (2.7 months of import cover) at the end of December 2022”.

Dr Addison said the volatilities that characterised the foreign exchange market in January 2023 “dissipated and the Ghana cedi remained relatively stable throughout the rest of the year”, he noted.

He said the stability in the foreign exchange market hinged on improved inflows from the first tranche of US$600 million from the International Monetary Fund’s three-year US$3-billion Extended Credit Facility programme, the domestic gold purchase programme, remittances, and FX purchases from mining and oil companies, amid monetary policy tightening.

“These were further supported by the release of COCOBOD loan facility in December 2023,” he said.

Dr Addison said excluding the “sharp depreciation of 20.6 per cent in January, the Ghana cedi cumulatively depreciated by 7.2 per cent against the US dollar between February and December 2023”.