By Kofi AHOVI
The trade balance for the first nine months of 2010 deteriorated by US$332 million, due mainly to increased imports.
Exports registered a growth of US$1.7 billion to US$5.9 billion during the period, representing 40.4%, while imports increased by US$2 billion, representing 34% growth in year-on-year terms to nearly US$8 billion. Export earnings during the first three quarters improved on the back of strong increases in volume and prices of gold and cocoa.
The financial and capital account surplus for the first three quarters was estimated at US$1.9 billion due to larger than anticipated Foreign Direct Investments, as well as large portfolio investments from non-residents. FDI flows were estimated at over US$1.3 billion of which the oil sector accounted for a significant portion. Portfolio investments were in excess of US$550 million.
These developments in the financial and capital account were offset by adverse developments in the current account which recorded a deficit of US$1.8 billion. On account of the improvements in the capital and financial account, the Balance of Payments registered a surplus of US$101 million for the first three quarters.
Total transfers into the economy which accrued to individuals from January to October 2010 were estimated at US$1.2 billion, compared with US$1.3 billion recorded for the same period in 2009.
As a result of the favourable outturn of the Balance of Payments, Gross International Reserves increased by US$1.3 billion to US$4.4 billion at the end of November 2010 translating, on average, into 3.5 months of import cover for goods and services.
Developments in the external accounts, together with the re-alignment of currencies in the international markets, resulted in the stability of the Ghana cedi against the three major currencies in the year to November.
The Ghana cedi depreciated marginally by 0.31% against the US dollar during the period, while appreciating by 8.6% and 13.5% against the Pound Sterling and the Euro respectively. These compare with depreciations of 17.6%, 24.4% and 28.1% respectively against the three currencies in November 2009.
On the basis of the developments in the exchange rate of the three core currencies against the Ghana cedi, a nominal effective appreciation of 1.3% in trade-weighted terms over the January to November 2010 period was recorded. This compares with a nominal effective depreciation of 10% over the corresponding period in 2009.
The performance of the real exchange rate of the cedi against the three core currencies combined shows that in trade-weighted terms, the cedi appreciated in real terms by 8.5% over the January to October 2010 period. This compares with a real effective depreciation of 12.8% over the corresponding period in 2009.
The trade balance for the first nine months of 2010 deteriorated by US$332 million, due mainly to increased imports.
Exports registered a growth of US$1.7 billion to US$5.9 billion during the period, representing 40.4%, while imports increased by US$2 billion, representing 34% growth in year-on-year terms to nearly US$8 billion. Export earnings during the first three quarters improved on the back of strong increases in volume and prices of gold and cocoa.
The financial and capital account surplus for the first three quarters was estimated at US$1.9 billion due to larger than anticipated Foreign Direct Investments, as well as large portfolio investments from non-residents. FDI flows were estimated at over US$1.3 billion of which the oil sector accounted for a significant portion. Portfolio investments were in excess of US$550 million.
These developments in the financial and capital account were offset by adverse developments in the current account which recorded a deficit of US$1.8 billion. On account of the improvements in the capital and financial account, the Balance of Payments registered a surplus of US$101 million for the first three quarters.
Total transfers into the economy which accrued to individuals from January to October 2010 were estimated at US$1.2 billion, compared with US$1.3 billion recorded for the same period in 2009.
As a result of the favourable outturn of the Balance of Payments, Gross International Reserves increased by US$1.3 billion to US$4.4 billion at the end of November 2010 translating, on average, into 3.5 months of import cover for goods and services.
Developments in the external accounts, together with the re-alignment of currencies in the international markets, resulted in the stability of the Ghana cedi against the three major currencies in the year to November.
The Ghana cedi depreciated marginally by 0.31% against the US dollar during the period, while appreciating by 8.6% and 13.5% against the Pound Sterling and the Euro respectively. These compare with depreciations of 17.6%, 24.4% and 28.1% respectively against the three currencies in November 2009.
On the basis of the developments in the exchange rate of the three core currencies against the Ghana cedi, a nominal effective appreciation of 1.3% in trade-weighted terms over the January to November 2010 period was recorded. This compares with a nominal effective depreciation of 10% over the corresponding period in 2009.
The performance of the real exchange rate of the cedi against the three core currencies combined shows that in trade-weighted terms, the cedi appreciated in real terms by 8.5% over the January to October 2010 period. This compares with a real effective depreciation of 12.8% over the corresponding period in 2009.
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