BoG Archives - Page 13 of 22

10 Aug

We Cannot Be Insolvent Or Bankrupt – BoG Replies NDC

wontumionlineBusinessbank of ghana, BoG

The Bank of Ghana has assured key stakeholders and the general public as a whole that the highest standards of prudent management, governance and transparent accounting and audit practices have been committed to. It said as a non-commercial bank, its financial outcomes have little implication on its operations. “Technically, Central Banks cannot be insolvent or bankrupt,” it stressed in a statement issued on Wednesday, August 9. This clarification comes barely 24 hours after the leading opposition National Democratic Congress (NDC) issued a 21-day ultimatum to the Governor, Dr Ernest Yedu Addison, and his two deputies – Dr Maxwell Opoku-Afari and…

08 Aug

First Deputy Governor Of BoG Calls For Improved Tax Administration

wontumionlineBusinessBoG, Dr Maxwell Opoku-Afari, Tax

The First Deputy Governor of the Bank of Ghana, Dr Maxwell Opoku-Afari is calling for an improved tax administration in the country. He said Ghana’s tax -to -GDP ratio is one of the lowest compared to its peers. Citing an example, Dr Opoku-Afari said the ratio of tax revenue to GDP in 2020 was 13.4 percent compared to an average of 16 percent for Africa, 19.1 percent for Asia and Pacific region, 21.9 percent for Latin America and the Caribbean region and 33.5 percent in OECD. This he indicated calls for broadening the tax base, upgrading tax policies, and revenue administration…

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…

28 Jul

Ghana To Reach Debt Deal With External Creditors In Quarter 2, 2024 – Fitch Solutions

wontumionlineBusinessBoG, external creditors, Fitch solutions, Ghana, Interest rates

Fitch Solutions believes that Ghana will reach a debt deal with its external creditors in the second half of 2024. According to the UK-based firm, this should provide tailwinds to the exchange rate and further limit imported price pressures. “Indeed, we believe that Ghana will reach a debt deal with its external creditors in H224 [half-year 2024], which should provide tailwinds to the exchange rate and further limit imported price pressures”. It added that real Gross Domestic Product growth will remain well below trend on the back of fiscal consolidation efforts under the IMF programme. However, the Central Bank will…

27 Jul

Policy Rate To Be Kept At 30% At Next MPC Meeting – Fitch Solutions Predicts

wontumionlineBusinessBoG, Fitch solutions, policy rate

Fitch Solutions is forecasting a steady policy rate of 30.0% by the Bank of Ghana at its next meeting in September 2023. It however believes that the Central Bank will commence a monetary easing cycle in the fourth quarter of 2023, as inflation will moderate rapidly towards the end of 2023. In its latest report on Ghana, the UK-based firm said the regulator of the banking industry will cut the benchmark policy rate by 200 basis points to 28.00 percent by the end of the year. Fitch Solutions furthered that inflation will moderate rapidly in the 4th quarter of 2023…

25 Jul

BoG Restores Forex Licenses Of Fidelity Bank And First National Bank – Governor

wontumionlineBusinessBoG, Fidelity Bank, First National Bank

Governor of the Central Bank, Dr Ernest Addison says it has restored the forex licenses of Fidelity Bank Ghana and First National Bank Ghana. This comes after the two financial institutions breached certain sections of the Ghana Interbank Forex Market Conduct rules. In a statement issued by the Bank in late June this year, Fidelity Bank and First National Bank were fined a combined 1,000 penalty points each for breaching sections 3. 4, 3.5 and 3.9 of the Ghana Interbank Forex Market Conduct rules. In the wake of this, the two banks were temporarily barred from forex trading activity effective June 29…

25 Jul

All Banks Submit Recapitalisation Plan Ahead Of September 2023 Deadline – Governor

wontumionlineBusinessBoG, Recapitalisation

The Bank of Ghana has announced that all banks have submitted their recapitalisation plan. This is ahead of the September 2023 deadline. The Domestic Debt Exchange Programme (DDEP) has impacted negatively on the banking industry, eroding the capital of some banks. According to the Governor of the Bank of Ghana, Dr. Ernest Addison, the recapitalisation programme will enhance the operations of the Ghana Financial Stability Fund. The Ghana Association of Banks had described the BoG’s end-of-September timeline for banks to provide their recapitalisation plans as a prudent decision. Its Chief Executive Officer, John Awuah, speaking exclusively to Joy Business said…

18 Jul

Cedi’s Outlook To Be Stable This Week

wontumionlineBusinessBoG, CEDI, Euro, interbank market, pound

The outlook of the cedi is expected to be stable this week despite the near-term outlook remaining a concern. Many analysts believe the local currency will benefit from the weakening dollar. The cedi is expected to continue its fine run in the lead-up to the Monetary Policy Committee (MPC) meeting from tomorrow July 19, 2023, and the press conference slated for Monday, July 24. Beyond July, the local currency’s outlook will hinge on progress with external debt restructuring, the revised fiscal framework, COCOBOD’s annual cocoa loan syndication, and a successful first review of the International Monetary Fund programme. Cedi remained…

13 Jul

Parliament To Subpoena BoG Governor, Dr. Addison Or Failing To File Financial Statement

wontumionlineBusinessBoG, Dr. Ernest Addison

The Minority Caucus in parliament says it will engage the Speaker of the House to subpoena the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison to explain why the central bank has failed to file its financial statement to the legislature. Deputy Ranking Member on the Finance Committee of Parliament, Isaac Adongo disclosed to journalists that the Governor has failed to undertake the constitutional exercise for almost six months. He explained that the law mandates the BoG to gazette its assets and liabilities every 15 days and file the financial statements by the end of the month. Mr.…

12 Jul

Ghana Overtake Egypt With Highest Interest Rates Among 15 Top African Countries

wontumionlineBusinessBoG, Egypt, Ghana, Interest rates

Ghana overtook Egypt with the highest interest rates among 15 top African countries. According to the Weekly Fixed Income Update compiled by some investment firms, the rates of about 24.39% and 26.03% for the 91-day and 182-day treasury bills were the highest among these top African economies. Despite the rates falling significantly in March 2023 due to the Domestic Debt Exchange Programme, they have gone up consistently to almost 30% (364-day bill) since then, and are also classified among the highest globally. The 91-day bill and 182-day bill have fallen by 10.97% and 9.95% since March 2023. Again, average lending…