Government’s revenue projection in the coming months could be affected badly if prices of cocoa, gold and crude oil do not improve anytime soon.
Latest data from the Bank of Ghana (BoG) show earnings from the country’s export commodities are dropping – a development that will affect government’s efforts to raise enough revenue to meet its financial obligations.
The report shows that, total earnings from Ghana’s traditional exports have been declining to reach 694 million dollars for the month of September.
The data also shows that cocoa was the hardest hit, with earnings reducing to 98 million dollars for September.
Government, however, spent a little over 2 billion dollars to meet the country’s import needs from August to September.
The Bank of Ghana’s engagements with consumers also shows that economic activities declined marginal for the month of September.
On money supply, the report shows that the measures by the Bank of Ghana to mop up what it calls excess cedis in circulation was working, as the amount of Ghana cedis available for economic activities was declining, while credit advances to businesses also was also going down.
The Bank of Ghana’s international reserves, has increased to 5.6 billion dollars as at September representing a little three months of import cover, while the Ghana cedis’ rate of depreciation from January to September is put at almost 16 percent by the Bank of Ghana.