• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, February 8, 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

DDEP: Is Today, February 7, 2023’s Deadline Likely To Be Extended Again?

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF

DDEP: Deadline Further Extended To Tuesday, February 7th, 2023

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

DDEP: Deadline Further Extended To Tuesday, February 7th, 2023
Finance

DDEP: Is Today, February 7, 2023’s Deadline Likely To Be Extended Again?

February 7, 2023
Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF
Economy

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF

February 3, 2023
DDEP: Deadline Further Extended To Tuesday, February 7th, 2023
Economy

DDEP: Deadline Further Extended To Tuesday, February 7th, 2023

February 1, 2023
Commercial High Court Orders Bank of Ghana to Produce Bank Statement of Capital Bank
Economy

Economist Advises Government to Stop Depending on Monetary Policy Rate Alone to Fight Inflation

January 31, 2023
IMF’s Conditionality Likely To Affect The Execution Of Government’s Flagship Projects
Economy

IMF’s Conditionality Likely To Affect The Execution Of Government’s Flagship Projects

February 1, 2023
BoG Discloses A Decline In Bank’s Profitability by 18.9% to GH¢3.9 billion in 2022
Finance

BoG Discloses A Decline In Banks Profitability By 18.9% To GH¢3.9 billion In 2022

January 30, 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.
RMB Urges African Countries To Focus On Constrained Fiscal Policies
Finance

RMB Urges African Countries To Focus On Constrained Fiscal Policies

by Gifty BansahFebruary 7, 2023
Russia Pledges Military Support To Mali
Africa

Russia Pledges Military Support To Mali

by Comfort AmpomaaFebruary 7, 2023
World Bank To Support The Hustler Fund, Contributes Towards Financial Inclusion In Kenya
Banking

World Bank To Support The Hustler Fund, Contributes Towards Financial Inclusion In Kenya

by Priscilla Dziedzorm FiakpornuFebruary 7, 2023
Huge Fear For Bank’s Profitability – Financial Analysts
Finance

Huge Fear For Banks Profitability – Financial Analysts

by Gifty BansahFebruary 7, 2023
Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges
Extractives/Energy

Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges

by Stephen M.CFebruary 7, 2023
Hammer, Bullet, and Wendy Shay Endorse New Version Of Kwame Yogot’s ‘I Am Feeling Okay’ Song
Entertainment

Hammer, Bullet, and Wendy Shay Endorse New Version Of Kwame Yogot’s ‘I Am Feeling Okay’ Song

by Esther Korantemaa OffeiFebruary 7, 2023
RMB Urges African Countries To Focus On Constrained Fiscal Policies
Russia Pledges Military Support To Mali
World Bank To Support The Hustler Fund, Contributes Towards Financial Inclusion In Kenya
Huge Fear For Bank’s Profitability – Financial Analysts
Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges
Hammer, Bullet, and Wendy Shay Endorse New Version Of Kwame Yogot’s ‘I Am Feeling Okay’ Song
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