The value of debt securities and equity holdings held by foreign investors increased significantly in 2021.
According to the 2022 Financial Stability Review, foreign investor debt increased to ₵31.7 billion at end-December 2021 from ₵28.8 billion at end-December 2020.
The value of foreign investors’ holdings also increased to ₵6.32 billion at end-December 2021 from GH₵4.82 billion at end-December 2020.
The significant increase in debt holdings of foreign investors puts undue pressure on the cedi whenever there is a shock to the economy.
The increase, according to the report, was attributable to rising stock prices in the domestic market, partly due to the stock market rally following the impact of the Covid-19 pandemic.
The total value of government debt securities reached ₵152.72 billion
The total value of outstanding Government of Ghana (GoG) and corporate debt securities increased in 2021 compared to the previous year.
The total value of outstanding GoG and corporate debt securities at the end of 2021 was ₵152.72 billion and ₵31.36 billion respectively, compared to GoG’s ₵120.69 billion and ₵27.07 ₵ billion of corporate bonds outstanding in the previous year.
This represents an increase of 26.5% and 15.9% for GoG and corporate bonds, respectively.
The market share of outstanding titles for GoG and corporate was 83.0% and 17.3% respectively in 2021. This is compared to 81.7% and 18.3% respectively the previous year.