Ghana’s trade deficit narrowed year-on-year to US$284.6 million in the first quarter of 2011 as oil exports of US$484.2 million provided a boost to the country’s total export receipts. The lower trade deficit also yielded a 61% slump in the current-account deficit to US$220.2 million compared to the same period of last year. In the first quarter of 2010, the trade deficit measured US$584.2 million and the narrower outturn this year reflects the altered balance in Ghana’s visible trade following the start of full-scale oil production at the Jubilee field. “The present projection is for a current-account deficit that is better than what was attained a year ago. Increased export receipts, portfolio inflows and foreign direct investments should help in the accumulation of reserves and support a stable currency,” the Bank of Ghana said last week as it briefed the press on discussions during its monetary-policy committee meetings. Total merchandise exports grew 62% over the first quarter of 2010 to US$3 billion, outpacing growth in imports by some 30 percentage points. In addition to oil, cocoa beans and products earned the economy US$859.4 million, 26% more than was received within the same period in 2010, while gold exports were valued at US$1.2 billion. Import expenditure was US$3.3 billion during the first three months of the year, compared with US$2.5 billion in the same period a year ago. Driven mainly by higher prices, oil imports rose to US$614.4 million, against imports of US$493.5 million in the corresponding period of 2010. The Central Bank disclosed that an amount of US$112 million that accrued from the sale of the Ghana National Petroleum Corporation’s first cargo of oil had been deposited in an interest-bearing escrow-account, awaiting the conclusion of ongoing discussions on its distribution. It expects the subsequent transfer of these resources to boost its international reserves, which stood at US$4.9 billion at the end of April - providing cover for 3.8 months of imports. After a sharp slide in the initial weeks of the year, the cadis’ value by end-April showed a nominal depreciation of 1.6% against the dollar. In real trade-weighted terms, the cedi weakened by 1.9%, the Central Bank said. “Our analysis suggests that the real exchange rate of the cedi is broadly aligned with economic fundamentals. The Bank of Ghana will continue to preserve competitiveness while at the same time minimising volatilities in the foreign-exchange market,” Governor Kwesi Amissah-Arthur remarked. Jubilee update Oil output from the Jubilee field is expected to peak at 120,000 barrels per day in July as the remaining four production wells are completed and brought on line, Tullow Oil, the field’s lead-partner said last week in a management report. Current gross production has surpassed 70,000 barrels per day; the company reported and said, also, that water and gas injection has begun. Jubilee Phase 1A project planning is at an advanced stage, it stated. Accordingly, a plan of development will be submitted to the Government of Ghana in the coming months, with work expected to commence in 2012. Extensive exploration activity is also continuing in the Deepwater Tano licence, the West Cape Three Points licence, the Banda Deep prospect, South Central Channel (Makore) and Dahoma Updip prospects, the UK-based explorer disclosed. Source: B&FT