bank of ghana Archives - Page 4 of 10

09 Aug

Gatsi Challenges BoG Over Blames On DDEP For 2022 Losses

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The Dean of the Business School of the University of Cape Coast (UCC), Professor John Gatsi, has challenged Bank of Ghana’s assertion that the Domestic Debt Exchange Programme (DDEP) affected its books in the year 2022. The Central Bank incurred a loss of GH¢60.8 billion in 2022 and blamed the Programme for the loss. Speaking at the launch of GCB Bank’s 70th anniversary, a Deputy Governor, Dr Maxwell Opoku-Afari, on behalf of the Governor, said the DDEP affected the profitability and solvency of banks in 2022 but performance in the first half of 2023 looks promising. On Tuesday, August 8,…

09 Aug

Set Limits For BoG Financing Of Government Budget – ISSER Advocates

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The Institute of Statistical, Social and Economic Research (ISSER) is advocating for the setting of financing limits of Bank of Ghana’s role in funding government’s budget. In its assessment of the government’s 2023 Mid-Year Budget presented by the Finance Minister on July 31, Director of Research at the Institute, Prof. Peter Quartey explained that the deficit financing of BoG has adverse impacts on national inflation, cash inflows and exchange rate stability. Dr Quartey cited Chile as a prime example of implementing strict legal restrictions which has no direct or indirect financing of public expenditures by the Central Bank (except under wartime…

07 Aug

We Saved Economy From Collapse By Taking 50% Haircut, Absorbing DDEP Shocks – BoG

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The Bank of Ghana's decision to reduce government debt by 50 per cent has been touted as a crucial move that averted economic collapse and impressed external partners. Dr. Philip Abradu-Otoo, Director of Research at BoG, highlighted that the bank's action sends a positive signal to international observers, who were closely monitoring the situation before committing to their own debt treatments. "With BoG being the absorber, the external partners are also watching. Remember they also need to go through some debt treatment but before that they needed to see what will happen to the Bank of Ghana and now that they’ve seen that,…

07 Aug

BoG Governor Addison Asks Banks To Innovate And Be Creative In Conducting Business

wontumionlineBusinessbank of ghana, BoG, Ernest Addison

Governor of the Bank of Ghana (BoG) Dr Ernest Addison has asked banks and other financial institutions to innovate and be creative in the conduct of business. He says this will enable the banks to grasp the ongoing adjustments in the Ghanaian economy. He stated that the Domestic Debt Exchange Programme (DDEP) affected the profitability and solvency of banks in 2022, but the performance of banks during the first half of 2023 looks promising. “The Bank of Ghana has also granted some temporary regulatory reliefs to dampen the impact of the debt restructuring and these, together with the expected operationalization…

02 Aug

Bank Of Ghana Explains What Caused Over GH¢60 Billion Loss In 2022

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The Bank of Ghana reported a Loss of GH¢60.8 billion. What is driving this huge loss: The main reason for this huge loss is the impairment of the holding of marketable Government stocks and non-marketable instruments of Government all being held in the books of the Bank of Ghana. This stock of Government instruments has been built over the years. In addition, the Bank of Ghana’s (BoG’s) exposure to COCOBOD, which has been built over the years, was also impaired. As we all know, the Government of Ghana embarked on both domestic and external debt restructuring. The holdings of Government instruments and COCOBOD exposures…

02 Aug

BoG Should Not Entirely Be Blamed For GH¢60.81bn Loss – Adu Sarkodie

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An economist at the University of Ghana, Dr. Adu Sarkodie has defended management of the Bank of Ghana over the GH¢60.81 billion loss the apex bank incurred in the 2022 fiscal year. Speaking to Bernard Avle on the Citi Breakfast Show onCiti FM, Dr. Sarkodie indicated that for the period under review, the Bank carried out its constitutional mandate well and so must not be lambasted. “The central bank is mandated to regulate the financial sector and influence GDP and employment, and they have done well on that level but the losses they made came from the fiscal side and were not the same as…

29 Jul

BoG Records ¢60.8bn Loss In 2022

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The Bank of Ghana recorded a loss of ¢60.8 Billion Ghana cedis in 2022, its Annual Report and Financial Statements has revealed. The Central Bank’s record loss is coming after it posted a ¢1.2 billion profit in 2021. According to the Annual Report and Financial Statements, the loss is attributed to a decline in the Group’s net worth position due to the impact of the Domestic Debt Exchange Programme (DDEP) and impairment of some assets. Again, its total liabilities and subsidiaries exceeded its total assets by ¢54.52 billion. In 2021, the Central Bank recorded a surplus of ¢5.72 billion. Reasons…

26 Jul

BoG Reiterates Commitment To Flexible FX Regime

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The Bank of Ghana (BoG) remains committed to maintaining a managed floating exchange rate regime with minimal interventions by the central bank, its Governor Dr. Ernest Addison has said – noting that it represents the most ideal framework for the domestic economy’s growth and stability needs at this stage of its development. A managed floating exchange rate regime allows a country’s currency to fluctuate in the foreign exchange (FX) market, with periodic central bank interventions to stabilise its value. In contrast, a fixed exchange rate regime (monetary unification) sets the currency’s value at a specific rate and requires central bank…

26 Jul

Banks Expected To Rebuild Capital Buffers Quickly – Central Bank

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The Bank of Ghana Governor, Dr. Ernest Addison, has expressed optimism about the banking sector’s ability to rebuild capital buffers swiftly with support from an equity capital infusion by shareholders, amid significant growth in profits within the industry during the first half of 2023. This growth is expected to stimulate economic activity in the real sector and bolster the banking industry’s overall resilience. Following the July 2023 Monetary Policy Committee (MPC) meeting, Dr. Addison highlighted during an engagement with media in Accra the substantial rebound in profits during the first half of 2023 – which came as a recovery from the significant…

24 Jul

Ghana’s Debt Stock Spikes 20% In 4 Months

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Ghana’s public debt increased by a fifth in just four months, driven partly by the inclusion of short-term loans from the central bank to the state. Public debt, which excludes state-owned enterprises obligations, rose to 569.3 billion cedis ($49.7 billion) at the end of April, the Bank of Ghana said on its website. The figure was adjusted to include the central bank’s overdraft to the government, which was securitized in December 2022. The debt figure as of December rose to 473.2 billion cedis after the adjustment, from an earlier estimate of 434.6 billion cedis, according to the central bank’s summary of economic…