Mid-Year Budget Review: International Reserves increase to 3.1 months of import cover – Finance minister

Ghana’s finance minister, Dr. Mohammed Amin Adam, has announced that the country's international reserves have significantly improved, now standing at 3.1 months of import cover.

Delivering the 2024 mid-year budget review before Parliament on July 23, Dr. Adam expressed confidence in Ghana's economic trajectory, asserting that the government’s recovery measures are yielding positive results.

“Gross International Reserves reached 3.1 months of imports as of the end of June 2024, compared to 2.5 months of imports in the same period last year.

“Mr. Speaker, it is evident that we are on the right trajectory. Things are looking better than we anticipated. The choices we have made and the policies we are implementing are yielding results. We have reversed the negative trends, and all indicators are looking better,” he told lawmakers.

The Minister attributed this achievement to effective fiscal management and strategic negotiations with international partners.

“Successful negotiations with the International Monetary Fund (IMF) have resulted in crucial support, including a $600 million tranche from the IMF and a $2.8 billion debt relief from the Paris Club and other creditors. This support has not only bolstered reserves but also contributed to stabilizing the economy,” he mentioned.

Dr. Adam also highlighted the government's significant investments in social programs and infrastructure.

“Over GH¢5.4 billion has been disbursed for various social programs, including LEAP, the School Feeding Programme, and the NHIS. Additionally, nearly GH¢10 billion has been invested in the road sector since January 2024.”

In conclusion, the finance minister pointed out that inflation, which remains a concern for many Ghanaians, has seen a notable decline.

“Inflation has dropped by 31 percentage points since 2022, and the government is committed to maintaining this downward trend. This improvement in inflation rates, coupled with the stabilization of the exchange rate, is expected to ease the cost of living for citizens,” he noted.



MA/NOQ