Ghana’s share of global FX reserves rises to 0.05% as global FX reserves hit $12.3 trillion
Global forex reserves hit $12.3 trillion at the end of 2023 representing a 3.5% year-on-year increase from the $11.92 trillion recorded a year earlier.
This is according to the latest data from the IMF’s Currency Composition of Official Foreign Exchange Reserves.
Ghana’s forex reserves at the end of April this year stood at $6.59 billion representing a meagre 0.05% of the global FX reserves.
This, however, represents a marginal increase from the 0.048% share of the country’s global FX reserves when its gross reserves stood at $5.91bn at end-December 2023.
According to the Central Bank, Ghana’s gross international reserves position remained strong within the first four months of 2023.
The $6.59bn reserves at end-April 2024 represent three (3) months of import cover, compared with the $5.91 billion which represented 2.7 months of import cover at end-December 2023.
The Central Bank further notes that Ghana’s reserves (excluding encumbered and petroleum assets) also increased to $4.32 billion, compared with $3.66 billion at end-December 2023.
In terms of currency shares, the U.S dollar share of global FX as of Q4 2023 was $6.687 trillion, representing 54.22%, like Q4 2022, where the USD’s share was $6.46 trillion, or 54.21%.
While the USD’s share of global FX reserves remains quite consistent in 2023, it is a significant decline from its 59% share recorded in Q4 2020. It is a further decline from the 71% share of 1999.
The Euros share of global FX reserves in Q4 2023 was $2.29 trillion, representing an 18.55% share. Year-on-year, there was a slight 1.6% increase from $2.25 trillion, as of Q4 2022. However, the Euro’s share declined marginally, from 18.9% as of Q4 2022 to 18.55% as of Q4 2023.
Since 1999, the U.S. dollar’s share of global foreign exchange reserves has significantly declined, while the euro’s share has remained stable, consistently hovering around the 20% mark since the currency’s inception in 1999.
For Pound Sterling and Japanese Yen, their share in the global foreign exchange reserves has remained consistent, with their share as of Q4 2023 at 4.5% and 5% respectively. Since 1999, the share of both currencies in global foreign exchange reserves has remained consistent around the 5% region.
According to the IMF, this shift in the composition of the global foreign exchange reserves is linked to a rise in the share of non-traditional reserve currencies.
The share of the other currencies, including the Chinese Renminbi, Canadian Dollar, Australian Dollar, and Swiss Francs as of Q4 2023 was 10.3%, up from 9.9% as of Q4 2022, and 9% as of Q4 2020.
