Ghana’s Foreign Reserves Depleted: IMF Report Discredits BoG Figures, Paints Grim Picture

• An IMF report has disclosed that Ghana's foreign reserves have depleted to precarious levels
• The report, "2023 International Monetary Fund Regional Economic Outlook Report (Sub-Saharan Africa)”, disclosed that Ghana has reserves to cover only two weeks of imports
• Meanwhile, the BoG issued a report not long ago in which it claimed Ghana's foreign reserves could cover over two months of imports

A report by the International Monetary Fund (IMF) on the state of Ghana’s net international reserves paints a worrying picture of the country’s economic situation.

The report titled, “2023 International Monetary Fund Regional Economic Outlook Report (Sub-Saharan Africa)” discloses that Ghana will end this year with about three weeks of import cover.

Also, the report stated that Ghana’s foreign reserves are precariously low.

The IMF report on a myriad of economic indicators of sub-Saharan African countries disclosed that Ghana’s current foreign reserves can last for only two weeks.

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This means that should foreign inflows stop abruptly today, Ghana’s economy will be in tatters because there is only a handful of dollars available at the Bank of Ghana (BoG) to transact business.

The IMF figures run contrary to those published by the BoG.

The BoG’s Summary of Economic and Financial Data stated that Ghana’s reserves in 2023 could cover 2.7 months of import cover.

Sub-Saharan Africa to experience decline in growth

The IMF report on the sub-region in summary is that growth in sub-Saharan Africa will decline to 3.6% in 2023.

"Amid a global slowdown, activity is expected to decelerate for a second year in a row," the report said.

The report also noted that unrelenting global inflation and tighter monetary policies have led to higher borrowing costs for the sub-region.

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The IMF notes that this has put greater pressure on exchange rates.

"Indeed, no country has been able to issue a Eurobond since spring 2022. The interest burden on public debt is rising, owing to a greater reliance on expensive market-based funding combined with a long-term decline in aid budgets," the report said..

Prof Hanke slams Ofori-Atta over Ghana's economy

Meanwhile, YEN.com.gh has reported in a separate story that Professor Steve Hanke thinks Ghana's finance minister Ken Ofori-Atta is wrongly blaming international lenders for his inability to secure loan agreements to solve the country's debt crisis.

He feels the manager of all of Ghana's finances should first recognise the monumental mismanagement under his watch.

Ghana is facing an unprecedented debt crisis under the current Nana Akufo-Add government that experts fear threatens to undo decades of economic progress and development.

Source: YEN.com.gh