Question

Balance of payments has become a topical issue globally and in Ghana as well because it is a statistical statement that systematically summarizes, for a specific time period, the economic transactions of an economy with the rest of the world – Residents and non-residents. Discuss three usefulness of balance of payments data to Ghana

Answer 1

Usefulness of Balance of payment statement to Ghana Government

1-Balance of payment clarifies the foreign exchange position of a country. With the helo of statement of balance of payment, Ghana government can an estimation of current position of foreign reserves, sources and deployment of foreign reserves and can make necesarry arrangements for.

2- Balance of payment will help the Ghana goverment to assess the status of  nature, size, composition and direction of a country’s international trade and can frame foreing trade policy accordingly.

3- Balance of payment can be used to forecast economic performanc of an economy and It is of great value in forecasting and evaluating its business and economic conditions