The Bank of Ghana has noted that the local currency has seen some gains in recent times due to the performance of the external sector.

The Central Bank said the external sector position has improved remarkably in the year, supported by a higher current account surplus and a reduction in net financial outflows.

This has led to a strong external reserve build-up.

It said the current account surplus increased to US$2.2 billion in the first nine months of the year, compared with a surplus of US$912 million over the corresponding period in 2023.

The strong current account surplus was supported by increased gold and crude oil exports as well as robust remittance inflows.

This development, together with a lower net outflow of US$414 million in the capital and financial account (relative to a net outflow of US$1.4 billion in 2023), contributed to an improved balance of payments position in the first three quarters of the year.

As a result, from the beginning of the year to end-September 2024, a reserve build-up of over US$1.91 billion was accumulated, pushing Reserves up to US$7.83 billion (equivalent to 3.5 months of import cover).

Gross reserves have increased further to US$7.92 billion as at November 22, 2024.

"The strong external sector performance is boosting confidence in foreign exchange market, with the Ghana cedi recording appreciable gains," the BoG said in its Monetary Policy Committee press release on November 29, 2024.

The Bank added that since end-October to November 2024, the Ghana cedi has recorded respective appreciations of 6.0%, 7.6% and 9.1% against the US dollar, the British pound and the euro, bringing the year-to-date depreciation of the Ghana cedi against the US dollar, the British pound and the euro to 22.7%, 22.4%, and 19.1%, respectively.

SSD/DA

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