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22nd July, 2009
Ghana's Oil Import Bill Drops
Ghana’s oil import bill for the first half of this year has dropped significantly, says Dr. Paul Acquah, Governor of the Bank of Ghana.
“Oil import bill was estimated at $449.61 million, compared with $ 1,326.49 million for the same period of 2008, a significant annual decline of 66.1 per cent,” he said.
The decline Dr. Acquah explained was as a result of the impact of a significant change in the hydro and thermal mix in the generation of electricity in favour of hydro, as well as some demand contraction.
The Central Bank governor who was speaking at a press briefing to announce the decision of the Monetary Policy Committee meeting of the bank on the country’s prime rate in Accra yesterday said the total import bill for the first half of the year fell sharply as a result of the compression in oil imports.
The prime rate, the rate at which commercial banks borrow from the Central Bank, remained unchanged at 18.5 per cent due to uncertainties in the local economy and the global economic meltdown.
“Total merchandised import was $ 3,872.35 million compared with $ 5,000.87 million for the same period in 2008, representing a decline in year on year terms of 22.6 percent,” he said.
As a result of the decline Dr. Acquah said the country’s merchandise trade deficit narrowed to $ 868.69 million compared with $ 2,155.04 million for the period last year.
On the performance of the country’s major export commodities on the international market he said cocoa beans exports was $ 2,940.02 per tonne in June this year as against $ 2,662.42 per tonne recorded in March this year, representing an increase of 10.4 per cent.
“Similarly, the average export price of gold increased by 3.6 per cent to $ 913.3 per ounce in the second quarter of 2009,” he said.
On private inward transfers received by non-governmental organisations, embassies, service providers, individuals through the banks during the first half of this year amounted to $ 4.23 billion, representing 1.3 percent decline from the level recorded for the same period last year.
“Of the total inward transfers during the period $ 728.29 million accrued to individuals, compared with $ 822.76 million for the same period in 2008,” he said.
Total purchases and sales in the foreign exchange markets by banks and forex bureaux during the first half of the year he said amounted to $ 2,683.02 million, compared with $ 3, 138.45 million for the same period in 2008.
In the foreign exchange market the central bank governor said there was a relative slowdown in the depreciation of the local currency against three core currencies in the second quarter of the year.
The cedi he said depreciated by 6.2 per against the dollar, 17.2 per cent against the pound sterling, and 11.5 per cent against the Euro in the second quarter, compared with depreciations of 11.5, 9.3 and 6.2 per cent respectively at the end of March this year.
“Oil import bill was estimated at $449.61 million, compared with $ 1,326.49 million for the same period of 2008, a significant annual decline of 66.1 per cent,” he said.
The decline Dr. Acquah explained was as a result of the impact of a significant change in the hydro and thermal mix in the generation of electricity in favour of hydro, as well as some demand contraction.
The Central Bank governor who was speaking at a press briefing to announce the decision of the Monetary Policy Committee meeting of the bank on the country’s prime rate in Accra yesterday said the total import bill for the first half of the year fell sharply as a result of the compression in oil imports.
The prime rate, the rate at which commercial banks borrow from the Central Bank, remained unchanged at 18.5 per cent due to uncertainties in the local economy and the global economic meltdown.
“Total merchandised import was $ 3,872.35 million compared with $ 5,000.87 million for the same period in 2008, representing a decline in year on year terms of 22.6 percent,” he said.
As a result of the decline Dr. Acquah said the country’s merchandise trade deficit narrowed to $ 868.69 million compared with $ 2,155.04 million for the period last year.
On the performance of the country’s major export commodities on the international market he said cocoa beans exports was $ 2,940.02 per tonne in June this year as against $ 2,662.42 per tonne recorded in March this year, representing an increase of 10.4 per cent.
“Similarly, the average export price of gold increased by 3.6 per cent to $ 913.3 per ounce in the second quarter of 2009,” he said.
On private inward transfers received by non-governmental organisations, embassies, service providers, individuals through the banks during the first half of this year amounted to $ 4.23 billion, representing 1.3 percent decline from the level recorded for the same period last year.
“Of the total inward transfers during the period $ 728.29 million accrued to individuals, compared with $ 822.76 million for the same period in 2008,” he said.
Total purchases and sales in the foreign exchange markets by banks and forex bureaux during the first half of the year he said amounted to $ 2,683.02 million, compared with $ 3, 138.45 million for the same period in 2008.
In the foreign exchange market the central bank governor said there was a relative slowdown in the depreciation of the local currency against three core currencies in the second quarter of the year.
The cedi he said depreciated by 6.2 per against the dollar, 17.2 per cent against the pound sterling, and 11.5 per cent against the Euro in the second quarter, compared with depreciations of 11.5, 9.3 and 6.2 per cent respectively at the end of March this year.
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