Report of The Auditor General On The Statement of Foreign Exchange Receipts and Payments of The Bank of Ghana

2019 30 JUNE
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REPORT OF THE AUDITOR-GENERAL

ON THE STATEMENT OF FOREIGN EXCHANGE
RECEIPTS AND PAYMENTS OF THE
BANK OF GHANA FOR THE
YEAR ENDED 30 JUNE 2019
This report has been prepared under Section 11
of the Audit Service Act, 2000 for presentation
to Parliament in accordance with
Section 20 of the Act.
Daniel Yaw Domelevo
Auditor-General
Ghana Audit Service
12 December 2019
This report can be found on the Ghana Audit Service

website: www.ghaudit.org
For further information about the
Ghana Audit Service, please contact:
The Director, Communication Unit
Ghana Audit Service Headquarters
Post Oﬃce Box MB 96,
Accra.
Tel: 0302 664928/29/20
Fax: 0302 662493/675496
E-mail: info@ghaudit.org
Location: Ministries Block 'O'
© Ghana Audit Service 2019
TRANSMITTAL LETTER
My Ref. No. AG.01/109/Vol.2/133

Office of the Auditor-General
Ministry Block ‘O’
P. O. Box M96
Accra-North
GA/110/8787
Tel: (0302)662492
Fax (0302)675496
12 December 2019
Dear Rt. Hon. Speaker,
REPORT OF THE AUDITOR-GENERAL ON THE STATEMENT OF

FOREIGN EXCHANGE RECEIPTS AND PAYMENTS OF THE BANK
OF GHANA (BoG) FOR THE HALF-YEAR ENDED 30 JUNE 2019
I have the honour to submit to you for presentation to Parliament the

above report, in accordance with article 184(3) of the 1992 Constitution,
and Section 12(2) of the Audit Service Act, 2000 (Act 584).
Mr. Speaker, the report highlights the management of the country’s

foreign exchange receipts and payments for the half-year period ending
30 June 2019.
Where appropriate, I have provided comparative figures for the

corresponding period in 2018.
I thank the Governor and his staff for their co-operation during the audit.
REPORT OF THE AUDITOR-GENERAL ON BANK OF GHANA FOREIGN EXCHANGE RECEIPTS & PAYMENTS FOR THE
HALF-YEAR ENDED 30 JUNE 2019
i
I am also grateful to my staff for their professional and efficient
contribution towards the execution of the audit.
Yours sincerely,
DANIEL YAW DOMELEVO

AUDITOR-GENERAL
ii
FOREIGN EXCHANGE RECEIPTS AND PAYMENTS OF THE BANK OF
GHANA (BoG) FOR THE HALF-YEAR ENDED 30 JUNE 2019
TABLE OF CONTENTS
Para(s) Page(s)
Executive summary 1-15 1-6
PART I
Analysis of foreign exchange receipts and payments 16-52 7-23
PART II
Foreign exchange earnings from dealer Commercial 53-59 24-26

Banks and Japanese Commodity- Related Grants
Opinion 60-63 26
Executive Summary Tables
ES1: Inflows
ES2: Outflows
ES3: Foreign Exchange inflows and outflows in US$ million for 2017 and
2018
ES4: Composition of Foreign Exchange Receipts for 2017 and 2018
ES5: BoG’s total Foreign Exchange Payments in US$ million for 2017 and 2018
ES6: BoG’s Foreign Exchange Payments in US$ million for 2017 and 2018
iii
GHANA (BoG) FOR THE HALF-YEAR ENDED 30 JUNE 2019
EXECUTIVE SUMMARY
1. We have audited the Statement of Foreign Exchange Receipts and Payments of
the Bank of Ghana (BoG) for the half-year ended 30 June 2019 in compliance with
Article 187 (2) of the 1992 Constitution of the Republic of Ghana and Section 12(1)
of the Audit Service Act 2000 (584).
2. The audit was planned and performed so as to obtain reasonable assurance that
the Statement of Foreign Exchange Receipts and Payments taken as a whole was free
from material misstatements. The maintenance of a proper system of internal control,
accurate and reliable records to safeguard the foreign exchange resources is the
responsibility of the Directors of BoG.
3. This report encompasses gross receipts and payments of the Bank of Ghana for
the period 1 January 2019 to 30 June 2019, and is divided into two parts, dealing with
the analysis of the foreign exchange receipts, and comments on foreign exchange
earnings from dealer commercial banks and Japanese commodity-related grants,
respectively.
Foreign receipts
4. These are receipts in foreign currency that increase the foreign reserves of the
country managed by the Bank of Ghana. The main sources are receipts from Cocoa,
Capital and Invisible Receipts and Foreign currency purchases. The receipts comprise:
 Export receipts;
 Loans and other capital receipts;
 Interests and commissions earned on foreign investments, accounts and
treasury operations;
 Foreign currency purchases.
 Foreign Payments
REPORT OF THE AUDITOR-GENERAL ON BANK OF GHANA FOREIGN EXCHANGE RECEIPTS & PAYMENTS FOR THE HALF-YEAR
ENDED 30 JUNE 2019 1
Foreign payments
5. These represent payments in foreign currency by Bank of Ghana in exchange
for its cedi equivalent. These payments are mainly to finance Oil and Non-Oil
imports, payments by order of the Controller & Accountant General, and IMF
payments.
SUMMARY OF FOREIGN EXCHANGE INFLOWS AND OUTFLOWS BY

SURRENDER AND NON -SURRENDER TRANSACTIONS FOR FIRST HALF
2019.
TABLE ES1 INFLOWS
TRANSACTION COCOA CAPITAL INVISIBLE TOTAL
TYPE RECEIPTS RECEIPTS
Millions of US Millions of US$
Millions of US$ Millions of US$
$
SURRENDER 678.82 3,956.57 3,856.41 8,491.80
(US $)
NON-SURRENDER 0.63 0.00 142.20 142.83
(US $)
TOTAL 679.45 3,956.57 3,998.61 8,634.63
Inflows
TOTAL
NON-SURRENDER
SURRENDER
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
TOTAL Millions of US$ INVISIBLE RECEIPTS Millions of US$

CAPITAL RECEIPTS Millions of US$ COCOA Millions of US $
6. Table ES1 provides a summary of gross forex inflows for the first half ended
30 June 2019. Total foreign exchange inflows came to US$8,634.63 million.
7. Of this total, US$8,491.80 representing 98.35% of the total inflows were
surrendered for cedis whereas the remaining amount of US$142.83 representing
1.65% were non-surrender portion of gross forex receipts.
TABLE ES2 OUTFLOWS

TRANSACTION FOREX SALES OTHER CAPITAL INVISIBLE TOTAL
TYPE (OIL&NON-OIL) IMPORTS PAYMENTS PAYMENTS
US$(Million)
US$(Million) US$(Million) US$(Million) US$(Million)
SURRENDER
2,299.33 34.04 2,607.26 438.84 5,379.47
NON-
SURRENDER
0.00 0.01 0.00 661.11 661.12
TOTAL 2,299.33 34.05 2,607.26 1,099.95 6,040.59
Outflows
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
FOREX SALES OTHER CAPITAL INVISIBLE TOTAL
(OIL&NON-OIL) IMPORTS PAYMENTS PAYMENTS
SURRENDER NON- SURRENDER TOTAL
8. Table ES2 shows that total amount of US$6,040.59 million was recorded as
payments in 2019. Out of this amount, US$5,379.47 million representing 89.06%
were surrendered for cedis. The non-surrender portion was US$661.12 representing
10.94% of total payments.
Analysis of Foreign Exchange Inflows and Outflows for 2018 and 2019
9. Foreign Exchange Inflows for 2019 were US$8,634.63 million compared with
US$2,741.26 million for the corresponding period of 2018, an increase of
US$5,893.37 million or 214.99%. The corresponding outflows for 2019 totalled
US$6,040.59 million compared with US$3,838.16 million for 2018, an increase of
US$2,202.43 million or 57.38%. Table ES3 shows an analysis of foreign exchange
inflows and outflows for 2018 and 2019.
Table ES3: Foreign exchange inflows and outflows in US$ million for 2018 and
2019
2018 2019
Inflows Outflows Inflows Outflows
2,741.26 3,838.16 8,634.63 6,040.59
Foreign exchange inflows to Bank of Ghana

10. BoG’s foreign exchange inflows for 2019 were derived from cocoa, capital and
invisible receipts. These totalled US$8,634.63 million for 2019 compared with
US$2,741.26 million for 2018, an increase of US$5,893.37 million or 214.99%. This
showed an upward movement of forex receipts.
Table ES4 provides details of the composition of foreign exchange receipts in US

millions for 2018 and 2019
Item 2018 2019 Increase/

(US$) Millions (US $) Millions (Decrease)
US $Million
Cocoa 194.22 679.44 485.22
Capital Receipts 1,541.89 3,956.57 2,414.68
Invisible Receipts 1,005.15 3,998.62 2,993.47
Total 2,741.26 8,634.63 5,893.37
11. The table shows that for the first half-year ended 30 June 2019 foreign
exchange from invisible receipts constituted the highest inflows, contributing 46.31%
of total inflows. In 2018, however, capital receipts contributed the highest inflow
which was 56.25% of total foreign exchange receipts.
Analysis of foreign exchange payments
12. Total foreign exchange outflows for the first half-year ended 30 June 2019
totalled US$6,040.59 compared with US$3,838.16 million for the same period of
2018, an increase of US$2,202.43 million or 57.38%
Details of the foreign exchange payments for 2018 and 2019 has been provided in
Table ES5:
Table ES5: BoG’s total foreign exchange payments in US$ million for
2018 and 2019
Year Amount
US$(Millions)
2018 3,838.16
2019 6,040.59
13. The table shows that foreign exchange payments rose from US$3,838.16
million in 2018 to US$6,040.59 million in 2019 representing 57.38%. The main
components of the foreign exchange payments were import payments for oil and non-
oil (visible import payments), capital and invisible payments. Details of foreign
exchange payments have been shown in Table ES6.
Table ES6: BoG’s foreign exchange payments in US$ million for 2018 and 2019
Foreign Exchange 2018 2019 Increase/
Payments US $M US $M (Decrease)
US $M
Forex Sales (Oil & Non-Oil) 1,026.82 2,299.33 1,272.51
Other Imports 20.72 34.05 13.33
Capital Payments 2,263.60 2,607.26 343.66
Invisible Payments 527.02 1,099.95 572.93
Total 3,838.16 6,040.59 2,202.43

Net-position of foreign exchange receipts and payments
14. Due to increases in cocoa, capital and invisible receipts, BoG’s net position
increased from a deficit of US$1,096.89 million recorded in 2018 to a surplus of
US$2,594.04 million in 2019 representing a positive movement of US$3,690.93
million or 336.49%.
Foreign exchange reserve assets
15. Bank of Ghana’s foreign exchange reserve assets as at 30 June 2019 were US
$8,578.47 million compared to US$7,423.82 million, recorded at 30 June 2018, an
increase of US$1,154.65 million or 15.55%.
Memorandum Items
Japanese Commodity-Related Grants US$3,700,796.25
i. Japanese commodity related Grants in the form of direct payments for Human
Resource Development and Power supply to Accra Central were US$3,700,796.25
compared to US$30,131,542.48 for the corresponding period of 2018.
Dealer Commercial Banks – US$6,156,685,979.51
ii. All of the 24 dealer commercial banks that operated in the first half of 2019 fully
submitted their returns on their foreign exchange earnings to BoG. The total foreign
exchange earned by dealer commercial banks was US$6,156,685,979.51.
GHANA (BoG) FOR THE HALF YEAR ENDED 30 JUNE 2019
PART I
ANALYSIS OF FOREIGN EXCHANGE RECEIPTS AND PAYMENTS
RECEIPTS
TRANSACTION TYPE SURRENDER NON-SURRENDER TOTAL
(US $M)
(US $M) (US$ M)
COCOA 678,812,134.65 633,130.82 679,445,265.47
CAPITAL RECEIPTS 3,956,565,734.81 0.00 3,956,565,734.81
INVISIBLE RECEIPTS 3,856,414,045.90 142,201,554.51 3,998,615,600.41
TOTALS 8,491,791,915.36 142,834,685.33 8,634,626,600.69
PAYMENTS
TRANSACTION TYPE SURRENDER NON- SURRENDER TOTAL
US$ US$ US$
FOREX SALES 2,299,328,166.94 0.00 2,299,328,166.94

(OIL&NON-OIL)
OTHER IMPORTS 34,036,538.54 13,215.13 34,049,753.67
CAPITAL PAYMENTS 2,607,258,788.85 0.00 2,607,258,788.85
INVISIBLE 438,842,881.72 661,112,381.02 1,099,955,262.74

PAYMENTS
TOTALS 5,379,466,376.05 661,125,596.15 6,040,591,972.20
Foreign exchange receipts
16. The Bank of Ghana derived its foreign exchange receipts from cocoa, capital
and invisible business transactions during the period. Total foreign exchange receipts
for 2019 were US$8,634,626,600 compared with US$2,741,263,179 for the
corresponding period of 2018, an increase of US$5,893,363,421.64 or 214.99%. The
increase was mainly attributable to an increase in cocoa, capital and invisible receipts.
17. The actual total foreign exchange receipts of US$8,634,626,600 were however
higher than BoG projected receipts of US$7,560,630,000 recording a favourable
variance of US$1,073,996,600 or 14.21%. The variance was as a result of actual
capital receipts far exceeding its projection.
Analysis of foreign exchange receipts - Cocoa

18. Foreign exchange receipts from cocoa consisted of foreign exchange inflows of
cocoa exports proceeds of Ghana Cocoa Board (COCOBOD) surrendered to Bank of
Ghana for cedis and those retained by the COCOABOD. Foreign exchange inflows
from cocoa were from three main sources:
 COCOBOD’s trade finance credit facility drawdowns sold to Bank of Ghana.
 Export proceeds of cocoa products such as cocoa butter, paste and powder sold
to Bank of Ghana.
 Other cocoa beans export proceeds not designated for settlement of trade
finance credit facility surrendered to Bank of Ghana for cedis.
Table 1: Analysis of foreign exchange receipts from cocoa to Bank of Ghana

SOURCES 2019 % of 2018 % of Increase/
US$ Total US$ Total (Decrease) US$
Syndicated Trade
Credit Facility
0.00 0.00 0.00 0.00 0.00
Cocoa (Surrender) 678,812,134.65 99.91 191,793,671.30 98.75 487,018,463.35
Cocoa 633,130.82 0.09 2,429,491.70 1.25 (1,796,360.88)

(Non-surrender)
TOTAL 679,445,265.47 100 194,223,163.00 100 485,222,102.47
19. Foreign exchange receipts from cocoa to Bank of Ghana totalled US$
679,445,265.47 in 2019 compared with US$194,223,163.00 for the corresponding
period of 2018, representing an increase of US$485,222,102.47 or 249.83%. Foreign
exchange receipts from cocoa constituted 8.07% of total foreign exchange receipts of
US$8,416,586,336.69.
20. For the first half of 2019, 400,546 tons of cocoa beans and 140,654 tons of
Cocoa products were exported compared with 439,126 tons of cocoa beans and
123,164 tons of cocoa products exported during the corresponding period of 2018,
indicating a reduction of 38,580 tons of cocoa beans and an increase of 17,490 tons of
cocoa products.
Table 2: Cocoa beans/products exported during 2019 and 2018 in tons

Item 2019 2018 Increase/(Decrease)
Tons Tons Tons
Cocoa Beans 400,546 439,126 (38,580)
Cocoa Products 140,654 123,164 17,490
Total 541,200 562,290 (21,090)
21. There were no inflows from syndicated pre-export trade finance drawdowns for
the first half of 2019. Foreign exchange receipts from cocoa to Bank of Ghana totalled
US$194,223,163.00 for the year 2018 compared with US$678,812,134.65 for the
reporting period, representing an increase of US$ 484,588,971.65 or 249.50%.
22. Bank of Ghana’s projection for cocoa receipts was US$678,810,000.00 for the
period under review whereas actual receipts were US$678,812,134.65 resulting in a
positive variance of US$ 2,134.65 or 3.14%.
23. Total capital receipts in the form of loans and grants for 2019 were
US$3,956,565,734.81 compared with US$1,541,888,079.86 recorded for 2018, an
increase of US$2,414,677,654.95 or 156.61%. The increase was mainly due to raise in
receipts from Structured Credit Facilities (Standard Chartered Bank, London and
Credit Suisse), BIS Bridging Facility, JP Morgan Bridging Facility, Sale Buy Back
arrangement for CAL/FBG/BBG/BBG/GCB and SG Facility.
Table 3: Analysis of capital receipts
Agency 2019 2018 Increase/(Decrease)
US$ US$ US$
SWISS 0.00 2,983,200.00 (2,983,200.00)
IMF INCOME 717,954.72 768,708.28 (50,753.56)
BIS BRIDGING 1,600,000,000.00 800,000,000.00 800,000,000.00

FACILITY
ECF LOAN (IMF) 374,396,954.30 189,574,541.87 184,822,412.43
JP MORGAN 500,000,000.00 0.00 500,000,000.00

BRIDGING
FACILITY
STRUCTURED 218,040,264.00 0.00 218,040,264.00

FACILITIES SCB-
LONDON &
CREDIT SUISSE)
SALE AND BUY 1,262,000,000.00 170,000,000.00 1,262,000,000.00

BACK BBG, CAL,
ABG, FBG, SCB,
GTB, GCB & SG
SWAP DEAL 0.00 150,000,000.00 (150,000,000.00)

AFRIEXIM
SWAP DEAL (BBG) 0.00 125,000,000.00 (125,000,000.00)
SWAP DEAL (SG) 0.00 100,000,000.00 (100,000,000.00)
DIVIDEND – GIB 1,410,561.79 3,561,629.71 (2,151,067.92)
Total 3,956,565,734.81 1,541,888,079.86 2,414,677,654.95
Bank of Ghana’s projection for capital receipts was US$2,300,000,000.00 whilst

actual capital receipts totalled US$3,956,565,734.81 showing a favourable variance of
US$1,655,847,780.09 or 71.99%.
Oil Revenue
24. The amount allocated to the Annual Budget Funding Amount (ABFA) for the
first half of 2019 totalled US$91,159,362.67. The actual amount purchased by Bank of
Ghana was US$132,282,402.53. This has been included in Forex Purchases and
reported under Invisible receipts in Table 6 of this report.
Invisible receipts
25. Invisible receipts comprised trading securities, outstanding bills for collections
(OBCs) other interests and commissions, interest from JP Morgan Investments,
interest on BISIP A Portfolio, UBSGAM, and forex purchases etc.
26. Invisible receipts recorded in 2019 were US$3,998,615,600.41 compared with

US$1,005,151,936.19 for the corresponding period of 2018, registering an increase of
US$2,993,463,664.22 or 297.81%. This was mainly due to an increase in forex
purchases, Trading Security, World Bank, JP Morgan Investment, Other Interest and
Commissions, BNP Paribas, Invesco, Non-Surrender Portion and Interest on BISIP A
Portfolio.
27. Whereas Bank of Ghana’s projection for invisible receipts was

US$4,416,190,000.00 actual inflows from invisible receipts came to
US$3,998,615,600.41 showing an unfavourable variance of US$417,574,399.59 or
9.46%. Table 4 shows a summary of invisible receipts.
Table 4: Analysis of invisible receipts for 2019 and 2018

US$ US$ US $
Other Interest & 30,178,690.56 14,756,971.87 15,421,718.69
Commissions
JP Morgan 6,435,340.07 5,589,247.25 846,092.82

Investment
Interest on BISIP A 29,843,849.61 (743,355.39) 30,587,205.00

Portfolio
UBSGAM 4,925,379.17 4,264,003.00 661,376.17
Forex Purchases 3,766,219,164.08 828,845,712.70 2,937,373,451.38
St. Street 0.00 791,772.66 (791,772.66)
Black Rock 0.00 471,032.76 (471,032.76)
World Bank 5,299,568.77 4,140,840.01 1,158,728.76
Securities Lending 421,565.34 68,837.56 352,727.78
Trading Security 7,817,474.65 (1,515,242.81) 9,332,717.46
Collateral Security 0.00 4,437,415.71 (4,437,415.71)
BISIP CNY 679,971.39 1,608,026.94 (928,055.55)
BNP Paribas 2,277,071.14 1,080,891.52 1,196,179.62
Invesco 2,315,971.12 1,434,792.48 881,178.64
Non- Surrendered 142,201,554.51 139,920,989.93 2,280,564.58

Portion
Total 3,998,615,600.41 1,005,151,936.19 2,993,463,664.22
Comparative analysis of foreign exchange receipts

28. A comparative analysis of the composition of foreign exchange receipts for
2019 and 2018 is provided in Table 5.
Table 5: Comparative analysis of the composition of Foreign Exchange Receipts

for 2019 and 2018 in US$
US$ US$
US$
Cocoa 679,445,265.47 194,223,163.00 485,222,102.47
Capital Receipts 3,956,565,734.81 1,541,888,079.86 2,414,677,654.95
Invisible Receipts 3,998,615,600.41 1,005,151,936.19 2,993,463,664.22
Total 8,634,626,600.69 2,741,263,179.05 5,893,363,421.64
Projection analysis of foreign exchange receipts

29. Our review disclosed that the overall projection performance of foreign
exchange receipts was favourable. BoG’s projected total receipts of
US$7,560,630,000.00 compared with actual receipts of US$8,634,626,600.69 leading
to a favourable variance of US$1,073,996,600.69 or 14.21%. The variance was as a
result of invisible receipts yielding more incomes than projected.
The detailed budgetary performance is provided in table 6.
Table 6: Budgetary performance -Foreign Exchange Receipts for the first half
year ended June 2019.
Item Budget Actual Variance
US$(M) US$(M) Favourable/
(Unfavourable)
US$(m)
Forex from Cocoa 678.81 679.44 0.63
Oil Revenue 165.63 0.00 (165.63)
Capital Receipts 2,300.00 3,956.57 1,656.57
Invisible Receipts 4,416.19 3,998.62 (417.57)
Total 7,560.63 8,634.63 1,074.00
Foreign exchange payments- US$6,040,591,972.20

30. Total Foreign Exchange Payments during the period were
US$6,040,591,972.20 compared with US$3,838,161,517.86 for the corresponding
period of 2018, depicting an increase of US$2,202,430,454.34 or 57.38%. This was
mainly due to an increase in forex sales (Oil and Non-oil), capital payments and
invisible payments.
31. For the first half of 2019, BoG projected total foreign exchange payments of
US$4,794,540,000.00 but actual total forex payments were US$6,040,591,972.20
indicating an unfavourable variance of US$1,246,051,972.20 or 26%.
Table 7: Analysis of foreign exchange payments

Item 2019 (US$) 2018 (US$) Increase/(Decrease) (US$)
Oil & Non-Oil 2,299,328,166.94 1,026,815,689.04 (1,272,512,477.90)
Other 34,049,753.67 20,727,077.04 (13,322,676.63)

Imports
Capital 2,607,258,788.85 2,263,600,220.15 (343,658,568.70)

Payments
Invisible 1,099,955,262.74 527,018,531.63 (572,936,731.11)

Payments
Total 6,040,591,972.20 3,838,161,517.86 (2,202,430,454.34)
Visible import payments
32. Visible imports comprised oil, non-oil as well as other imports. Visible import
payments for the period were US$2,333,377,920.61 compared with US$
1,047,542,766.08 for the corresponding period of 2018 representing an increase of
US$1,285,835,154.53 or 122.75%.
Table 8: Visible import payments for 2019 and 2018
Item 2019 US$ 2018 US$ Increase/(Decrease)
US$
Oil 507,793,603.81 9,944,390.90 497,849,212.91
Non-Oil 1,791,534,563.13 1,016,871,298.14 774,663,264.99
Other 34,049,753.67 20,727,077.04 13,322,676.63

Imports
Total 2,333,377,920.61 1,047,542,766.08 1,285,835,154.53
33. Forex outflows for crude oil was US$507,793,603.81 which represented
21.76% of the total visible import payments of US$2,333,377,920.61 showing an
increase of US$1,285,835,154.53 or 122.75% over the 2018 figure of
US$1,047,542,766.08. The rise is attributed to the increase in forex sales to
commercial banks to finance the purchase of crude oil. Above was occasioned by the
deregulation policy which allowed the Oil Marketing Companies (OMCs) to finance
their own oil purchases.
34. Non-oil payments rose by US$774,663,264.99 or 76.18% from

US$1,016,871,298.14 in 2018 to US$1,791,534,563.13 in 2019 as a result of the
increase in foreign exchange sales to dealer commercial banks to finance import needs
of their customers.
35. The actual non-oil payments of US$ US$1,791,534,563.13 were higher in 2019
than the BoG’s projection of US$ 720,000,000.00 which registered an unfavourable
variance of US$1,071,534,563.13 or 148.82%.
36. Other import payments increased from US$20,727,077.04 in the previous

period to US$34,049,753.67 in 2019, an increase of US$13,322,676.63 or 64.28%.
This was due to the increment in visible imports during the period.
Capital payments
37. Capital payments, which included loan repayments to bilateral and multilateral
institutions, totalled US$ 2,607,258,788.85 compared with US$2,263,600,220.15 for
the corresponding period of 2018, representing an increase of US$343,658,568.70 or
15.18%. This was mainly attributed to an increase in repayment of BIS Bridging
facility, interest on Sovereign Bond, Interest on JP Morgan Facility and Interest on
SCB London Facility as well as Margin Call – Bridging Facility.
38. Actual capital payments of US$2,607,258,788.85 for the period were lesser
than the BoG projection of US$2,682,370,000.00 by US$75,111,211.15 or -2.80%
Table 9: Capital payments for 2019 and 2018

Particulars 2019 2018 Increase/
(US$) (US$) (Decrease) (US$)
Misc. Capital 612,558,550.38 557,089,459.36 55,469,091.02
Payments
Int. on Sovereign 213,508,765.68 164,683,256.73 48,825,508.95

Bond
Repayment of BIS 805,777,488.89 800,000,000.00 5,777,488.89
Bridging facility
Int. on BIS Bridging 5,900,000.00 8,913,333.33 (3,013,333.33)

Facility
Int. on JP Morgan 13,220,422.53 0.00 13,220,422.53

Facility
Int. on SCB London 6,663,083.33 0.00 6,663,083.33

Facility
Int. on CITI Bank 0.00 11,135,602.92 (11,135,602.92)

Bridging Facility
Repayment of CITI 0.00 150,000,000.00 (150,000,000.00)

Bank Bridging
Facility
Margin Call – 3,443,400.08 0.00 3,443,400.08

Bridging Facility
IMF Loan 53,992,045.40 55,371,657.04 (1,379,611.64)

Repayments &
Interests
IMF Charges 2,715,865.89 1,981,600.82 734,265.07
Sale and Buy Back 0.00 150,000,000.00 (150,000,000.00)

(FBG)
Sale and Buy back 889,479,166.67 110,000,000.00 779,479,166.67

(CAL)
Coupon Payment 0.00 254,425,309.95 (254,425,309.95)

(SCB)
Total 2,607,258,788.85 2,263,600,220.15 343,658,568.70
Invisible payments
39. Invisible payments were made up of manpower, training and development,
embassy transfers, progress payments to contractors, management and technical
services fees, capital subscriptions and sundry payments. Total invisible payments for
2019 were US$1,099,955,262.74 compared with US$527,018,531.63 for the
corresponding period of 2018, registering an increase of US$572,936,731.11 or
108.71%. The increase resulted mainly from the rise in all the components of the
invisible payments with the exception of progress payment, embassy transfers and
manpower training.
40. BoG’s projection for invisible payments was US$1,392,170,000.00 whereas

actual payments were US$1,099,955,262.70 showing a favourable difference of US$
292,214,737.30 or 20.99%. A breakdown of invisible payments for the period is
provided below.
Table 10: Details of invisible payments in US$ for 2019 and 2018
PARTICULARS 2019 2018 INCREASE/
(US$) (US$) (DECREASE)
US$
Manpower & 18,471,100.08 19,672,749.68 (1,201,649.60)
Training
Embassy Transfers 42,592,104.82 55,240,822.62 (12,648,717.80)
Progress Payment 13,124,833.05 20,756,741.25 (7,631,908.20)
Contractors
Mgt. & Tech. 61,715,240.55 25,507,629.01 36,207,611.54
Services Fees
Institutional 14,639,090.38 4,794,820.53 9,844,269.85
Subscriptions
Sundry Payments 288,300,512.84 116,542,771.28 171,757,741.56
Non- Surrender 661,112,381.02 284,502,997.26 376,609,383.76
Total 1,099,955,262.74 527,018,531.63 572,936,731.11
Manpower, training and development

41. These were allowances paid to government-sponsored students and government
employees attending seminars and courses abroad. Total transfers for the period of
2019 were US$18,471,100.08 compared with US$19,672,749.68 for the
corresponding period of 2018, recording a decrease of US$1,201,649.60 or 6.11%.
The decrease was mainly due to a reduction in payment for government-sponsored
students abroad and public officers attending courses abroad.
Progress payments to contractors

42. These were payments made to Contractors undertaking various projects in the
country. Total payments for the period were US$13,124,833.05 compared with
US$20,756,741.25 for the corresponding period of 2018, representing a decrease of
US$7,631,908.20 or 36.77%.
43. This was as a result of decreases in amounts paid to contractors in 2019. The
details of Contractual Payments are provided in Table 11:
Table 11: Progress payments to contractors for 2019 and 2018

Name of Project 2019 (US$) 2018 (US$)
Contractor
M/S Amandi Construction of Western Line from

Holding LTD. Kojokrom to Eshiam Standard Gauge
3,205,420.40 5,001,648.44
M/S Agritop Construction of three Greenhouse

Limited capacity building Training Centres at
0.00 5,445,866.02
Dawhenya, Ohawu and Libga .
International Outstanding payment certificate IRO
Hospitals development of Police Hospital Accra
6,742,664.58 0.00
Group
Limited
M/S Amandi Redevelopment of Takoradi-Secondi

Holding Ltd. via Kojokrom Susurban Railway line
including Railway Station and supply
of Rolling Stock 1,610,705.57 0.00
M/S Amandi Redevelopment of the Takoradi-

Holding Ltd. Sekondi Railway Line
1,566,042.50 10,161,767.25
China Geo Rehabilitation of Akatsi- Aflao Road

Engineering 147,459.54
0.00
Corporation
TOTAL 13,124,833.05 20,756,741.25
Embassy transfers
44. These were remittances to Ghana Missions abroad. An amount of
US$42,592,104.82 was remitted to the missions in 2019 compared with
US$55,240,822.62 reported in 2018, showing a decrease of US$12,648,717.80 or
22.90%.
45. Embassy transfers accounted for the second highest of invisible payment,
representing 3.87% of total invisible payments for the period.
Table 12: Embassy transfers
MISSION FIRST HALF FIRST HALF
2019 2018
US$ US$
ABIDJAN, COTE D’IVOIRE 958,307.65 975,259.75
ABU DHABI, UAE 419,780.61 1,539,052.54
ABUJA, LAGOS 1,908,560.76 2,320,762.31
ADDIS ABABA, ETHIOPIA 767,393.05 943,437.06
ALGIERS, ALGERIA 390,933.31 542,692.80
ANKARA, TURKEY 657,878.76 908,846.53
BAMAKO, MALI 680,481.54 830,088.36
BEIJING, CHINA 1,892,598.75 1,504,218.98
BERLIN, GERMANY 1,226,466.21 1,532,731.05
BERNE, SWITZERLAND 519,835.66 826,404.11
BRASILIA, BRAZIL 654,442.22 815,555.99
BRUISSELS, BELGIUM 741,913.77 834,045.41
CAIRO, EGYPT 504,215.55 719,522.80
CANBERRA, AUSTRALIA 527,581.50 952,047.92
CONAKRY, GUINEA 323,369.47 421,977.02
COPENHAGEN, DENMARK 676,671.75 725,505.66
COTONOU, BENIN 341,537.39 557,705.80
DAKAR, SENEGAL 472,675.66 597,117.20
DOHA, QATAR 420,539.96 1,346,310.96
DUBAI, UAE 592,873.60 977,481.72
FREETOWN, SIERRA LEONE 388,979.54 610,907.83
GENEVA, SWITZERLAND 1,346,054.07 1,714,957.45
GUANGZHOU, CHINA 0 0
HARARE, ZIMBABWE 324,315.75 458,117.75
HAVANA, CUBA 686,592.07 1,029,873.88
KINSHASHA, DEM. REP. CONGO 398,016.31 596,561.50
KUALA LUMPUR, MALAYSIA 384,226.68 710,477.07
KUKWAIT CITY, KUKWAIT 359,336.34 1,113,235.01
LOME, TOGO 552,506.27 988,464.93
LONDON, TEHRAN 3,211,686.76 3,428,233.02
LONDON 2 562,557.34 786,285.13
LUANDA, ANGOLA 324,491.74 354,848.78
LUSAKA, ZAMBIA 235,900.44 304,983.17
MADRID, SPAIN 646,456.96 657,055.75
MALABO, EQUITORIAL GUINEA 317,705.82 494,523.68
MONROVIA, LIBERIA 512,896.61 703,975.79
MOSCOW, RUSSIA 542,466.29 723,827.42
NAIROBI, KENYA 515,809.28 680,265.71
NEW DELHI, INDIA 652,221.59 833,385.67
NEW YORK, UNITED NATIONS 2,306,421.98 2,391,918.29
OTTAWA, CANADA 1,078,750.09 1,603,850.77
OUGADOUGOU, BURKINA FASO 933,810.17 1,036,023.03
OSLO, NORWAY 497,722.86 0
PARIS, FRANCE 924,601.36 1,178,887.86
PORT LOUIS, MAURITIUS 357,317.81 0
PRAGUE, CZECH REPUBLIC 617,221.50 867,617.79
PRETORIA, SOUTH AFRICA 840,072.97 808,957.37
RABAT, MOROCCO 400,368.91 597,734.94
RIYADH, SAUDI ARABIA 575,157.39 902,931.46
ROME, ITALY 860,636.98 1,343,526.13
SEOUL, SOUTH KOREA 585,405.52 839,845.07
TEL AVIV, ISRAEL 537,854.66 814,557.84
THE HAGUE, NETHERLANDS 509,873.96 713,905.60
TOKYO, JAPAN 1,398,671.66 1,863,101.08
TRIPOLI, LIBYA 431,648.68 799,337.92
VATICAN, ROME 420,453.15 374,910.79
VIENNA, BERNE 377,343.77 0
WASHINGTON D.C 1,822,285.31 2,563,035.24
WINDHOEK NAMIBIA 476,209.06 479,937.93
TOTAL 42,592,104.82 55,240,822.62
Management and Technical service fees
46. Foreign exchange payments made for technical and management services were
US$61,715,240.55 for 2019 compared with US$ 25,507,629.01 for the corresponding
period of 2018 representing an increase of US$36,207,611.54 or 141.95%. The rise
was due to more consultancy services paid during the period under review.
Institutional subscriptions
47. Capital subscriptions were payments in respect of fees to International and
Regional Organizations and Agencies to which Ghana is affiliated. In 2019, an
amount of US$14,639,090.38 was paid as institutional subscriptions compared with
US$4,794,820.53 for the previous year showing an increase of US$9,844,269.85 or
205.31%.
Sundry payments
48. Sundry payments consisted of other payments made through BoG including
Inspection Fees, Freight and Insurance, Personal Subscriptions, Medicals and
Correspondent bank charges. Sundry payments made in 2019 totalled
US$288,300,512.84 compared with US$116,542,771.28 for the corresponding period
of 2018, an increase of US$171,757,741.56 or 147.38%. This was mainly due to
increases in other payments through Bank of Ghana.
Projection analysis of foreign exchange payments

49. Comparison of projected payments of US$4,794,540,000.00 with actual
payments of US$6,040,591,972.20 resulting in an unfavourable variance of
US$1,246,051,972.20 or 25.99% for 2018. Details of the budgetary performance are
provided in table 13.
Table 13: Budgetary performance of foreign exchange payments for the first
half-year 2019
Item Budget Actual Favourable/
US $ (m) US $ (m) (unfavourable)
Variance
US $ (m)
Oil and Non-Oil 720.00 2,299.33 (1,579.33)
Other Imports 0.00 34.04 (34.04)
Capital Payments 2,682.37 2,607.26 75.11
Invisible Payments 1,392.17 1,099.96 292.21
Total 4,794.54 6,040.59 (1,246.05)
Foreign exchange receipts and payments (Net Position)
50. Bank of Ghana recorded a net surplus of US$2,594,034,628.49 during the first
half ended June 2019 compared with a net deficit of US$1,096,898,338.81 for the
corresponding period of 2018 representing a positive movement of
US$3,690,932,967.30 or 336.49%. The increase in BoG’s surplus was as a result of an
increase in capital and invisible receipts.
Movement in Foreign Reserve Asset
51. Bank of Ghana’s foreign reserve assets consisted of gold, holdings of Special
Drawing Rights; correspondent bank balances, foreign notes and coins balances,
investment and fixed deposits, investment in Ghana International Bank (GIB) London,
as well as Investment in Afrexim Bank.
52. The bank’s reserve position as at 30 June 2019 totalled US$8,578,468,740.64

compared with US$7,423,815,771.84 for the corresponding period of 2018 showing
an increase of US$1,154,652,968.80 or 15.55%. The increase in foreign reserves
resulted mainly from increases in fixed deposits and holdings of SDR. Details of the
reserve assets as at 30 June 2019 are provided in Table 14.
Table 14: BoG Reserve assets position as at 30 June 2019

Item June 2019 June 2018 Increase/
US$ US$ (Decrease)
US$
Gold 367,651,261.35 370,562,340.48 (2,911,079.13)
Holdings of SDR 49,996,162.35 46,717,501.23 3,278,661.12
Correspondent Bank 2,454,520,788.95 2,049,567,818.61 404,952,970.34
Balance
Foreign Notes & Coins 41,648,277.97 29,231,214.58 12,417,063.39
Fixed Deposits 4,502,624,415.59 3,898,025,070.31 604,599,345.28
Investment in GIB London 48,535,425.00 50,069,250.00 (1,533,825.00)
Investment in Afrexim 7,604,721.29 7,604,721.29 0.00
Bank
Sovereign Funds 977,362,043.37 842,143,834.52 135,218,208.85
Reserve in SDR 128,525,644.77 129,894,020.82 (1,368,376.05)
Total 8,578,468,740.64 7,423,815,771.84 1,154,652,968.80
Table 15: Interest on Correspondent Bank Balances for the first half ended 30 June
2019
PARTICULARS 30 JUNE 2019 US$ 30 JUNE 2018 US$
BANK OF CANADA CALL 3,938.06 6,615.39
GIB LONDON USD OPERATING 357.78 4,953.58

CALL
GIB LONDON MAIN 59.80 62.62
CALL DEP BIS BASLE USD 16,409.17 11,512.16
CALL DEP BIS BASLE GBP 180.46 100.01
SARBZA PRETORIA 96,194.88 81,435.18
JP MORGAN CASH 191,428.09 102,253.57

COLLATERAL A/C USD
TOTALS 308,568.24 206,932.51
OVERNIGHT SWEEP
PARTICULARS 30 June 2019 US$ JUNE 2018 US$
FEDERAL REVERVE BANK 22,540,154.48 9,624,762.34
CITI BANK 2,748.62 2,048.85
TOTALS 22,542,903.10 9,626,811.19
PART II
FOREIGN EXCHANGE EARNINGS FROM DEALER COMMERCIAL
BANKS AND JAPANESE COMMODITY- RELATED GRANTS
Memorandum Accounts Items
Dealer commercial banks
53. Commercial banks, which handle foreign exchange earning inflows on behalf
of their customers, are required to submit monthly returns on their foreign exchange
earnings to the Bank of Ghana.
54. As at first half 2019, 24 commercial banks were noted as facilitating the receipt
of foreign exchange inflows on behalf of their customers.
55. All the 24 dealer commercial banks which operated in the first half ended 30
June 2019 submitted their returns on their foreign exchange earnings to BoG.
56. The total foreign exchange earned through dealer commercial banks was
US$6,156,685,979.51.
Table 16: Schedule of earnings from dealer commercial banks for the first half
ended 30 June 2019
Particulars 2019 US$ 2018 US$
Non-Traditional 151,027,231.50 223,705,566.53

Exports
Other Exports 421,144.528.21 397,597,802.57
Service Receipts 3,932,848,173.71 3,546,074,849.57
Income Receipts 544,259,463.59 256,648,839.64
Financial 174,413,175.59 10,689,068,477.05
Transactions
Transfers – Inward 932,993,406.91 559,176,621.50
Remittances
Total 6,156,685,979.51 15,672,272,156.86
Japanese Commodity-Related Grants- US$3,700,796.25
57. The Government of Japan gives grants to the Government of Ghana in the form
of direct payment for goods and services for ongoing projects. Total Japanese grants
received during the period under review were US$3,700,796.25 compared with
US$30,131,542.48 for the corresponding period of 2018.
The grant was meant for the following projects:
DETAILS TOTAL
US$
Project for human resources development scholarship (1719C 480,346.29
and 1820A)
Project for the Re-enforcement of Power Supply to Accra 3,220,449.96
Central 1517A (¥4,357 Million)
TOTAL 3,700,796.25
Gold
58. In the period under review, mining companies listed in table 3 below
surrendered a total of US$461,879,326.51 through their respective Commercial
Banks. This was as a result of policy changes at the Bank of Ghana, permitting the
licensed mining Companies to deal directly with their individual commercial Bankers
Table 17: Schedule of gold receipts surrendered through Commercial Banks

during the first half of 2019 are:
COMPANIES SURRENDER VALUES

US$
ABOSSO GOLDFIELDS LTD 43,542,391.32
ASANKO GOLD 158,909,247.34
GOLDEN STAR (BOGOSO/PRESTEA) LTD. 5,250,082.24
CHIRANOGOLD MINES LTD 13,814,851.78
GOLDFIELDS GHANA LTD, TARKWA 105,830,494.58
PERSEUS MINING LTD 12,663,111.20
GOLDEN STAR (WASSA) LIMITED 20,482,688.07
NEWMONT GOLDEN RIDGE LIMITED 57,031,378.93
ANGLOGOLD ASHANTI (IDUAPRIEM) LTD 22,781,339.46
ADAMUS RESOURCES GHANA LIMITED 21,573,741.59
TOTALS 461,879,326.51
Manganese
59. Ghana Manganese Company Limited surrendered US$35,925,415.80 in export
proceeds through its Commercial Bankers, Stanbic Bank. This, as with Gold
surrender, was occasioned by Policy Changes at the Bank of Ghana permitting the
licensed company to repatriate its export proceeds through an elected official
commercial bank.
OPINION
60. We have audited the Statement of foreign exchange receipts and payments of
the Bank of Ghana and the attached relevant schedules for the half-year ended 30 June
2019.
61. Our audit was conducted in accordance with generally accepted auditing
standards. Our examination included a general review of accounting and internal
control procedures, records and other supporting evidence to validate the foreign
exchange receipts and payments figures.
62. We also reviewed the receipts and payments of external loans and grants,
external bank balances and the foreign exchange reserve position of BoG.
63. In our opinion the Statement of foreign exchange receipts and payments of
Bank of Ghana fairly presents the foreign exchange position of the Bank of Ghana as
at 30 June 2019.
DANIEL Y. DOMELEVO
AUDITOR GENERAL
Mission
Statement
The Ghana Audit Service exists
To promote
· good governance in the areas of transparency,
accountability and probity in the public financial
management system of Ghana
By auditing
· to recognized international auditing standards, the
management of public resources
And
· reporting to Parliament

Report of The Auditor General On The Statement of Foreign Exchange Receipts and Payments of The Bank of Ghana

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Report of The Auditor General On The Statement of Foreign Exchange Receipts and Payments of The Bank of Ghana

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2019 30 JUNE

REPORT OF THE AUDITOR-GENERAL

This report can be found on the Ghana Audit Service

My Ref. No. AG.01/109/Vol.2/133

Dear Rt. Hon. Speaker,

REPORT OF THE AUDITOR-GENERAL ON THE STATEMENT OF

I have the honour to submit to you for presentation to Parliament the

Mr. Speaker, the report highlights the management of the country’s

Where appropriate, I have provided comparative figures for the

DANIEL YAW DOMELEVO

Executive summary 1-15 1-6

Analysis of foreign exchange receipts and payments 16-52 7-23

Foreign exchange earnings from dealer Commercial 53-59 24-26

Executive Summary Tables

ES4: Composition of Foreign Exchange Receipts for 2017 and 2018

SUMMARY OF FOREIGN EXCHANGE INFLOWS AND OUTFLOWS BY

SURRENDER 678.82 3,956.57 3,856.41 8,491.80

NON-SURRENDER 0.63 0.00 142.20 142.83

TOTAL 679.45 3,956.57 3,998.61 8,634.63

TOTAL Millions of US$ INVISIBLE RECEIPTS Millions of US$

TABLE ES2 OUTFLOWS

TOTAL 2,299.33 34.05 2,607.26 1,099.95 6,040.59

SURRENDER NON- SURRENDER TOTAL

Foreign exchange inflows to Bank of Ghana

Table ES4 provides details of the composition of foreign exchange receipts in US

Item 2018 2019 Increase/

Other Imports 20.72 34.05 13.33

Capital Payments 2,263.60 2,607.26 343.66

Invisible Payments 527.02 1,099.95 572.93

Total 3,838.16 6,040.59 2,202.43

ANALYSIS OF FOREIGN EXCHANGE RECEIPTS AND PAYMENTS

COCOA 678,812,134.65 633,130.82 679,445,265.47

CAPITAL RECEIPTS 3,956,565,734.81 0.00 3,956,565,734.81

INVISIBLE RECEIPTS 3,856,414,045.90 142,201,554.51 3,998,615,600.41

TOTALS 8,491,791,915.36 142,834,685.33 8,634,626,600.69

FOREX SALES 2,299,328,166.94 0.00 2,299,328,166.94

OTHER IMPORTS 34,036,538.54 13,215.13 34,049,753.67

CAPITAL PAYMENTS 2,607,258,788.85 0.00 2,607,258,788.85

INVISIBLE 438,842,881.72 661,112,381.02 1,099,955,262.74

TOTALS 5,379,466,376.05 661,125,596.15 6,040,591,972.20

Analysis of foreign exchange receipts - Cocoa

Table 1: Analysis of foreign exchange receipts from cocoa to Bank of Ghana

Cocoa (Surrender) 678,812,134.65 99.91 191,793,671.30 98.75 487,018,463.35

Cocoa 633,130.82 0.09 2,429,491.70 1.25 (1,796,360.88)

Table 2: Cocoa beans/products exported during 2019 and 2018 in tons

Cocoa Beans 400,546 439,126 (38,580)

Cocoa Products 140,654 123,164 17,490

Total 541,200 562,290 (21,090)

SWISS 0.00 2,983,200.00 (2,983,200.00)

IMF INCOME 717,954.72 768,708.28 (50,753.56)

BIS BRIDGING 1,600,000,000.00 800,000,000.00 800,000,000.00

ECF LOAN (IMF) 374,396,954.30 189,574,541.87 184,822,412.43

JP MORGAN 500,000,000.00 0.00 500,000,000.00

STRUCTURED 218,040,264.00 0.00 218,040,264.00

SALE AND BUY 1,262,000,000.00 170,000,000.00 1,262,000,000.00

SWAP DEAL 0.00 150,000,000.00 (150,000,000.00)

SWAP DEAL (BBG) 0.00 125,000,000.00 (125,000,000.00)

SWAP DEAL (SG) 0.00 100,000,000.00 (100,000,000.00)

DIVIDEND – GIB 1,410,561.79 3,561,629.71 (2,151,067.92)

Total 3,956,565,734.81 1,541,888,079.86 2,414,677,654.95

Bank of Ghana’s projection for capital receipts was US$2,300,000,000.00 whilst

26. Invisible receipts recorded in 2019 were US$3,998,615,600.41 compared with

27. Whereas Bank of Ghana’s projection for invisible receipts was