As'salamu Alaikum,
Allah Almighty is always near and is everywhere:
[050:016] It was We Who created man, and We know what dark suggestions his soul makes to him: for We are nearer to him than (his) jugular vein.
The Hadith is using earthly terms that do not describe Allah Almighty, for nothing can describe Allah Almighty:
[112:004] And there is none like unto Him.
The Holy Month of Ramadan is a sacred month, and is special to Allah Almighty because He sent the Glorious Quran down in this holy month:
[002:185] The month of Ramadan in which was revealed the Qur'an, a guidance for mankind, and clear proofs of the guidance, and the Criterion (of right and wrong). And whosoever of you is present, let him fast the month, and whosoever of you is sick or on a journey, (let him fast the same) number of other days. Allah desireth for you ease; He desireth not hardship for you; and (He desireth) that ye should complete the period, and that ye should magnify Allah for having guided you, and that peradventure ye may be thankful.
So Allah Almighty is extra Merciful in this Holy Month. Not that He is not closer any other time.
I hope this helps, insha'Allah.
Take care,
Osama Abdallah