• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, November 29, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Russia-Ukraine War Likely To Impact Negatively On Ghana’s External Sector, BoG Warns

March 22, 2022
Stephen KotochiebyStephen Kotochie
in Economy, Sub Top Stories1
0
Russia-Ukraine War Likely To Impact Negatively On Ghana’s External Sector, BoG Warns

The Bank of Ghana (BoG) has warned that the ongoing Russia-Ukraine war is likely to impact negatively on Ghana’s external sector, particularly in the area of some key construction and agricultural commodities.

According to the Bank of Ghana, an average of about 2.5 percent of Ghana’s total non-oil imports come from Russia and Ukraine and around 0.4 percent of Ghana’s total exports also go to Russia and Ukraine. The main import items from Russia are grains, wheat flour and fertilizers but the crisis has already disrupted supply of these commodities, leading to a hike in prices.

“In 2021, around 28.7 percent of Ghana’s grains imports came from Russia and for the first two months of 2022, grains imports from Russian accounted for 31.2 percent of the total grain imports. And about 50.0 percent and 39.2 percent of flour and fertilizer imports respectively, were sourced from Russia in the first two months of this year. Ghana’s main exports to Russia are cocoa beans and products and it accounted for 0.2 percent of total cocoa exports”.

Bank of Ghana

These have important implications for the supply and prices of these major items imported from Russia, BoG warned. On the other hand, Ghana’s major imports from Ukraine are iron ore and steel, accounting for over 60 percent of the total iron ore and steel imports, the Bank of Ghana disclosed.

RelatedPosts

Ghana’s Remittance Flows Soar to an Impressive US$3.2 Billion

BoG Maintains 30% Monetary Policy Anticipating A Firm-rooted Downward Inflation

The Cedi In Precarious Position As Over 25% Depreciation Sparks Concerns

1x 1
Dr. Ernest Addison – Governor of the Bank of Ghana

“As a result of this fact, the construction industry will likely face some challenges in terms of supply disruptions and prices of steel and iron ore imports. With regards to exports, manganese is the major item exported to Ukraine and for the first two months of this year, manganese shipment to Ukraine accounted for around 12 percent of the total manganese exports. Over the past few years, manganese exports to Ukraine has accounted for over 20 percent of the total manganese exports”.

Bank of Ghana

Effects of the crisis on commodity prices

So far in 2022, commodity prices have increased sharply, driven largely by ongoing geopolitical tensions and increased demand pressures. Bank of Ghana’s data show that average crude oil prices increased by 25.0 percent on a year-to-date basis to US$93.5 per barrel in February 2022. The sharp rise in prices was supported by supply restraint and political tensions between Russia and Ukraine, which added to concerns about further disruption in an already-tight market.

images?q=tbn:ANd9GcSjTfmyslP0PwYw3ltP4BeTzs7qwPaH2MUfXw&usqp=CAU

Similarly, prices of the other major export commodities- Gold and Cocoa- also experienced increases in the first two months. Gold gained from the escalating geopolitical tensions as demand for the safe-haven metal increased which resulted in a 3.3 percent rise in Gold prices to US$1,849.5 per ounce in February 2022. Cocoa prices also rose to US$2,659.5 per tonne in February 2022 compared to the US$2,545.9 per tonne a month earlier, as concerns about dry weather conditions boosted prices.

Current account deficit to widen by the end of Q1 2022

While commodity prices have impacted exports positively in the first two months of the year, their impact on imports have far outweighed the gains made in exports and has led to a narrowing of the trade surplus. Data from BoG showed that total exports amounted to US$2.7 billion, a growth of 5.5 percent year-on-year, compared with US$2.6 billion as at February 2021.

The Bank of Ghana underscored that the jump in export receipts was driven mainly by a 35 percent increase in crude oil exports, benefitting from price effects as volumes declined. Other exports, mainly non-traditional exports, also registered an increase of 27.2 percent in the first two months of the year.

Consistent with a pick-up in economic activities, imports grew by 7.9 percent to US$2.3 billion compared with US$2.2 billion same period last year. The growth was reflected mainly in oil and gas imports (primarily refined petroleum products), which went up by 80.1 percent year-on-year, the Bank of Ghana explained.

The developments in exports and imports translated to a lower trade surplus of US$404.9 million in the first two months of 2022, compared with US$432.7 million in the first two months of 2021. Looking ahead, BoG expects these trends, together with developments in the services and income account, to result in a widening of the current account deficit by the end of the first quarter.

READ ALSO: My Commitment to the Party and Government Remain Intact- Deputy Trades Minister

Tags: External sectorFertilizerghanaRussia-UkraineTrade Balance

Related Posts

Ghana’s Remittance Flows Soar to an Impressive US$3.2 Billion
Economy

Ghana’s Remittance Flows Soar to an Impressive US$3.2 Billion

November 28, 2023
Owners of Closed  Forex Bureaus May Lose Licenses Forever- BoG
Economics

BoG Maintains 30% Monetary Policy Anticipating A Firm-rooted Downward Inflation

November 28, 2023
Ghana’s Cedi In Precarious Position As Over 25% Depreciation Sparks Concerns
Economy

The Cedi In Precarious Position As Over 25% Depreciation Sparks Concerns

November 27, 2023
Economic Winds of Change: Unpacking Ghana’s Producer Price Inflation Dive in October
Economy

Economic Winds of Change: Unpacking Ghana’s Producer Price Inflation Dive in October

November 24, 2023
Delayed External Debt Restructuring Negotiation Could Stall Ghana’s Economic Recovery– PwC
Economy

Delayed External Debt Restructuring Negotiation Could Stall Ghana’s Economic Recovery– PwC

November 23, 2023
Ghana’s 2024 Budget; PwC Says Ghana Is Rather Turning The Corner
Economy

2024 Budget; PwC Calls For Creative Revenue Collection Strategies In Informal Sector

November 23, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Piedmont Lithium to Sell 1.5 million Shares to Fund Operations at Ewoyaa and Quebec

Next Post

Government Should’ve Listened To Prevent Economic Hardship- Professor Kwesi Prempeh

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Honorable Sylvester Tetteh Calls NDC’s Promised Prosecution On Galamsey “Empty Threats”
General News

NPP MP Demands Clarity On 24-Hour Economy

by Stephen M.CNovember 29, 2023
Bernard Monah Criticizes High Court Ruling Against OSP On Labianca Case
General News

Bernard Monah Criticizes High Court Ruling Against OSP On Labianca Case

by Evans Junior OwuNovember 29, 2023
Structure Of L.I On Import Restriction Grants Excessive Power To Trade Minister
General News

Structure Of L.I On Import Restriction Grants Excessive Power To Trade Minister

by Angeller AshongNovember 29, 2023
World Commemorates International Day of Solidarity With The Palestinian People
Asia

World Commemorates International Day of Solidarity With The Palestinian People

by Comfort AmpomaaNovember 29, 2023
You Have To Look For Monica – Prince Mackay
Entertainment

You Have To Look For Monica – Prince Mackay

by Esther Korantemaa OffeiNovember 29, 2023
GSE’s GH¢26 billion Capital Raise, GH¢750 billion Securities Trading Impact
Securities/Markets

GSE’s GH¢26 billion Capital Raise, GH¢750 billion Securities Trading Impact

by Stephen M.CNovember 29, 2023
Honorable Sylvester Tetteh Calls NDC’s Promised Prosecution On Galamsey “Empty Threats”
Bernard Monah Criticizes High Court Ruling Against OSP On Labianca Case
Structure Of L.I On Import Restriction Grants Excessive Power To Trade Minister
World Commemorates International Day of Solidarity With The Palestinian People
You Have To Look For Monica – Prince Mackay
GSE’s GH¢26 billion Capital Raise, GH¢750 billion Securities Trading Impact
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In