By Kofi Ahovi
Ghana’s overall Balance of Payments recorded a surplus of US$546.5 million in 2011, just a third of the GHc1.5 billion recorded in 2010, data from Bank of Ghana has shown. This is primarily because of the widening current account deficit.
Total merchandise exports grew by 60.6% in 2011 to US$12.7 billion while total merchandise imports also grew by 46.2% in 2011 to US$15.9 billion resulting in a deficit of US$3.1 billion for 2011.
Meanwhile, just as in 2010, the capital and financial account recorded strong surplus, driven by net inflows of private capital investment, which largely negated both the trade and current account deficits. Also total inward transfers helped the balance of payment position too.
The growth in total merchandise exports in 2011 was supported by oil exports and favourable commodity prices. The exports of gold amounted to US$4.9 billion while cocoa beans totalled US$2 billion. The value of crude oil exports was US$2.7 billion over the same period.
Meanwhile, out of the US$15.9 billion of imports, oil imports were US$3.3 billion compared with US$2.2 billion recorded in 2010. Crude oil imports amounted to US$1.4 billion while imports of refined oil products were US$1.7 billion. Gas imports were estimated at US$172.8 million.
Total non-oil imports amounted to US$12.7 billion. By end-use, capital imports were US$2.7 billion, intermediate imports amounted to US$6.1 billion, consumption goods, US$3.0 billion and others constituted US$900 million.
However, the Capital and Financial Account surplus improved to US$4.5 billion in 2011 from a surplus of US$4.3 billion in 2010, driven by net inflows of private capital investments mainly into the oil sector.
Total inward transfers received by individuals through the banking system grew by 72.7% to US$1.9 billion in 2011 from US$1.1 billion in 2010.
The Gross International Reserves of the Bank of Ghana improved to US$5.4 billion in 2011 from U$4.7 billion in 2010. However, it declined to GH¢4.6 billion as at January 2012 due to the increased demand for foreign exchange resulting from the higher than normal surge in seasonal demand to support trade. This caused the cedi to depreciate in January 2012.
The cedi depreciated at a much faster pace of 5.9% compared to 1.9% in January 2011, mainly on account of strong demand for foreign exchange and some speculative activities.
The cedi, however, depreciated by 4.9% against the US dollar in 2011, compared to 3.1% in 2010. In trade-weighted terms, a real effective depreciation of 1.7% was recorded, compared to 1.5% in 2010.
Ghana’s overall Balance of Payments recorded a surplus of US$546.5 million in 2011, just a third of the GHc1.5 billion recorded in 2010, data from Bank of Ghana has shown. This is primarily because of the widening current account deficit.
Total merchandise exports grew by 60.6% in 2011 to US$12.7 billion while total merchandise imports also grew by 46.2% in 2011 to US$15.9 billion resulting in a deficit of US$3.1 billion for 2011.
Meanwhile, just as in 2010, the capital and financial account recorded strong surplus, driven by net inflows of private capital investment, which largely negated both the trade and current account deficits. Also total inward transfers helped the balance of payment position too.
The growth in total merchandise exports in 2011 was supported by oil exports and favourable commodity prices. The exports of gold amounted to US$4.9 billion while cocoa beans totalled US$2 billion. The value of crude oil exports was US$2.7 billion over the same period.
Meanwhile, out of the US$15.9 billion of imports, oil imports were US$3.3 billion compared with US$2.2 billion recorded in 2010. Crude oil imports amounted to US$1.4 billion while imports of refined oil products were US$1.7 billion. Gas imports were estimated at US$172.8 million.
Total non-oil imports amounted to US$12.7 billion. By end-use, capital imports were US$2.7 billion, intermediate imports amounted to US$6.1 billion, consumption goods, US$3.0 billion and others constituted US$900 million.
However, the Capital and Financial Account surplus improved to US$4.5 billion in 2011 from a surplus of US$4.3 billion in 2010, driven by net inflows of private capital investments mainly into the oil sector.
Total inward transfers received by individuals through the banking system grew by 72.7% to US$1.9 billion in 2011 from US$1.1 billion in 2010.
The Gross International Reserves of the Bank of Ghana improved to US$5.4 billion in 2011 from U$4.7 billion in 2010. However, it declined to GH¢4.6 billion as at January 2012 due to the increased demand for foreign exchange resulting from the higher than normal surge in seasonal demand to support trade. This caused the cedi to depreciate in January 2012.
The cedi depreciated at a much faster pace of 5.9% compared to 1.9% in January 2011, mainly on account of strong demand for foreign exchange and some speculative activities.
The cedi, however, depreciated by 4.9% against the US dollar in 2011, compared to 3.1% in 2010. In trade-weighted terms, a real effective depreciation of 1.7% was recorded, compared to 1.5% in 2010.
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