Business

18 Aug

Dollar Shortage Hits Forex Market, Cedi Depreciation Nears ¢10 Mark

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Dollar shortage has hit the forex market as the rate of depreciation of the Ghana cedi nears GH¢10 to one US dollar. Checks with some banks and forex bureau by Joy Business indicate that whilst some banks are quoting ¢9.95 to the dollar, others are selling a dollar for ¢9.90. However, the situation is worst at the forex bureaus as they are quoting between ¢9.97 and ¢10.5 to one American greenback. As of Monday, August 15, 2022, the cedi had lost about ¢3.15 on the face value to the dollar since the beginning of the year. Some Senior Relationship Managers…
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18 Aug

BoG increases Policy Rate To 22%; Cost Of Borrowing To Shoot Up Significantly

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The Bank of Ghana has increased the policy rate by 300 basis points to 22%, after an Emergency Monetary Policy Committee meeting today, August 17th, 2022. The move is part of measures to address the risks to the inflation outlook. However, cost of borrowing is expected to go up significantly, and consequently increase cost of living and doing business. Additional measures The MPC also took additional measures including raising the primary reserve requirement of banks from 12% to 15% to be implemented in a phased manner. Therefore, the reserve requirement will go up to 13% from September 1st, 2022 and…
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17 Aug

AGI Calls For Aggressive Local Production To Tackle Economic Woes

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The Association of Ghana Industries (AGI) has urged the government to aggressively promote local production of goods, saying it is the surest way the country can overcome the current economic crisis. Speaking at the opening of the three-day Ghana Industrial Summit and Exhibition 2022 in Accra, Dr Humphrey Ayim-Darke, President of the AGI, said investments in local industries to ramp up domestic production were crucial to deal with the current economic downturn. “It is imperative to note that no country can ever industrialise without deliberate policies and programmes to support industries or businesses,” he said. “The government has a role…
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17 Aug

Emergency MPC Meeting: Goldman Sachs Projects 200 Basis Points Hike In Policy Rate

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A global investment and research firm, Goldman Sachs, has predicted that the Bank of Ghana (BoG) will raise its policy rate by 200 basis points (bp) on Wednesday when it concludes an emergency Monetary Policy Committee (MPC) meeting called to respond to the current economic challenges. This is according to the Daily Graphic. The firm said in a research update issued on August 16, 2022 that the central bank would raise the rate from the current 19 per cent to 21 per cent in an attempt to calm the turbulence in the foreign exchange (FX) market and help ease inflationary…
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17 Aug

Over $600m Spent On Imported Chicken In 2021 – Poultry Farmers Unhappy

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Over $600 million worth of chicken is dumped onto the Ghanaian market annually. This has compounded the woes of Ghana’s poultry industry which is on the verge of collapse due to the lack of regulation to check the dumping of chicken onto the market. Speaking at a hearing over allegations of dumping of chicken into the country by the Ghana International Trade Commission, National Chairman of the Poultry Farmers Association, Victor Oppong, expressed worry that local players may be forced out of business. “On annual basis, we receive 600,000 metric tons of frozen chicken which is made up of 569…
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17 Aug

Mid-Year Budget Failed To Give Hope To Ghanaians; Consult CSOs For Help – IFS To Government

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The Institute for Fiscal Studies (IFS) has described the 2022 Mid-Year budget as not addressing the country’s true economic challenges. According to the IFS, the solutions presented by government do not address the fundamental challenges affecting the economy, hence the recent rapid depreciation of the cedi, rising inflation rate and growing debt stock. Speaking at a press conference, Senior Economist with the IFS, Dr. Said Boakye said government must admit it needs help and consult all stakeholders for assistance including Civil Society Organisations (CSOs). “Why is the government pursuing such a weak fiscal consolidation strategy in the face of the…
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16 Aug

Ghana Holds Potential To Become Leading Global Supplier Of Coconut —GEPA Boss

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The Chief Executive Officer of Ghana Export Promotion Authority, GEPA, Dr. Afua Asabea Asare says, with the necessary investment, Ghana can become a leading global supplier of coconut and generate significant export revenue for the country. Ghana is set to hold the second edition of the International Coconut Conference Festival, ICF, from Tuesday, 20th to Friday 23rd September. The four day Trade and exhibition event will among others bring together key stakeholders in the coconut growing and processing industry Speaking at the launch of the event in Ellembele in the Western Region, Dr. Afua Asabea Asare disclosed that in 2021 “fresh coconut…
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16 Aug

Cedi Depreciation: Government Urged To Enforce Laws On Pricing In Dollars

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The Executive Director of Danquah Institute, Dr. Antoinette Tsiboe Darko is calling on the appropriate authorities to speedily put in place measures to reduce the dollarisation in the economy. According to her, the pricing of goods and services in dollars is a structural defect which has worsen the economic challenges confronting the country. She compares the situation to our neighboring francophone countries and maintains that the CFA appreciates better than the Cedi. Speaking on the Big Issues on Citi TV, she said, “We have structural issues which speak to the issues we are currently facing. We have a dollarized economy. It…
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16 Aug

BoG, EOCO Deepen Collaboration To Build Robust Financial Sector

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As part of efforts to build a strong and robust financial sector, the Bank of Ghana and the Economic and Organised Crime Office, EOCO have signed an agreement strengthen the investigative operations of the EOCO. To this end, the Board of the Central Bank has approved a grant of ten million Ghana cedis which will be disbursed in two phases. Speaking at the signing ceremony, Governor of the Bank of Ghana, Dr. Ernest Addison the move will help the Economic and Organised Crime Organisation (EOCO) to carry out its mandate properly. “By this Memorandum of Understanding, the bank of Ghana…
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16 Aug

BoG To Hold Emergency MPC Meeting On Wednesday

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The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has announced an emergency meeting scheduled for Wednesday, August 17, 2022. According to a statement issued by the Central Bank, the emergency MPC meeting is to review recent developments in the Ghanaian economy. The move by the Committee, is believed to be mainly the result of the continuous rise in the inflation rate. Other important issues such as the depreciation of the cedi as well as measures to check the country’s declining foreign reserves will also feature in the Committee’s discussions and review of the economy. Inflation at the…
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