Data emanating from the Bank of Ghana indicate that the country’s Gross International Reserves as at the end of February, 2019 has increased significantly, recording US$9.245 billion which is equivalent to 4.7 months import cover, compared with US$6.942 billion which was 3.7 months import cover.
The 33.1 percent rise in the reserves is expected to support the cedi from further fall.
The significant rise in the country’s reserves was due to the recent US$3 billion Eurobond issued recently.
The speed depreciation of the local currency, the cedi, is expected to recover against its trading partners, as the US$3 billion Eurobond money hits the accounts of Bank of Ghana, (BoG).
The US$3billion Eurobond money would improve the country’s balance of payment, increase the country’s reserves as well as strengthen the cedi.
Ghana just completed a $3 billion bond sale with maturities of seven, 12 and 31 years. The order books had exceeded $21 billion – the highest ever for a sub-Saharan African bond sale – and nearly half of that was for the longest-dated issue, according to the finance ministry.
Ghana aims to issue longer-dated hard currency bonds in its next bond sale, Finance Minister Ken Ofori-Atta said last week, adding that he expected the cedi currency to strengthen in the months to come.
