BoG Archives - Page 15 of 22

12 Jun

T-bills Auction: Interest Rates Rise To 27.8%; Government Records 6.4% Oversubscription Of Target

wontumionlineBusinessBoG, Interest rates, T-Bills

Government recorded about 6.4% oversubscription of its treasury bills target of ¢2.63 billion but an increasing cost. According to figures from the Bank of Ghana, interest rates surged for the eighth-week running, raising concerns about the government’s debt management strategy, aimed at cutting Ghana’s debt. The government has been borrowing heavily on the money market since the beginning of 2023 but at a higher cost. This is because it is the only source of borrowing. The rising interest rates are expected to keep high the domestic interest payments of the government. The figures from the Bank of Ghana indicate that…

09 Jun

Locked Up Funds On MoMo Accounts: Govt, BoG Working To Ensure Subscribers Retrieve Their Cash – Ursula

wontumionlineBusinessBoG, locked up funds on momo, Ursula Owusu, Ursula Owusu Ekuful

The Minister of Communications and Digitalisation Ursula Owusu-Ekuful has said that the Ministry has become aware of persons whose funds have been locked up on the Mobile Money (MoMo) accounts following the SIM card deactivation exercise. She said efforts are underway to ensure that the subscribers are able to retrieve their cash. Speaking in Parliament while providing an update on the status of the SIM re-registration exercise on Thursday, June 8 Madam Owusu-Ekuful said “We continue to encourage the National Identification Authority (NIA) to assist people to acquire their Ghana Card. “We have also been made aware of the difficulties…

06 Jun

Cedi Depreciation Against Dollar Slows Down; May Record Mixed Performance This Week

wontumionlineBusinessBoG, CEDI, dollar, Euro, pound

The Ghana cedi slowdown its deprecation against the dollar last week, as the local currency lost only 1.28% on the retail market. The cedi also lost 2.60% in value to the pound, while it weakened 2.01% to the euro. This is coming after the Bank of Ghana provided approximately $14.5 million in spot market support, while allocating $20 million to Bulk Oil Distributing Companies, but this support was insufficient to alleviate demand pressures for the greenback. Analysts are, however, anticipating a mixed performance of the cedi against the major foreign currencies this week. With the International Monetary Fund programme taking…

01 Jun

Economic Reforms And Financial Discipline Required To Strengthen The Cedi – Kwakye

wontumionlineBusinessBoG, IEA

Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has said that fiscal discipline is needed to strengthen the Cedi. Bloomberg reports that Ghana’s currency is poised for one of the strongest rallies globally after the West African nation’s $3 billion pact with the International Monetary Fund (IMF) gave investors hope it can climb back from last year’s debt crisis. https://twitter.com/thebankofghana/status/1664180069961539584?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1664180069961539584%7Ctwgr%5E645d1a80ae63f619a85779c84a075fcb03041a8f%7Ctwcon%5Es1_&ref_url=https%3A%2F%2F3news.com%2Feconomic-reforms-and-financial-discipline-required-to-strengthen-the-cedi-kwakye%2F The cedi was the best performer worldwide against the dollar in the runup to the IMF deal, which was sealed mid-month. That was the latest in a series of violent swings since Ghana unilaterally suspended payments…

29 May

Rate Of Credit To Private Sector Moderates – BoG

wontumionlineBusinessBoG

The rate of growth for credit extended to the private sector has slowed down, as a cocktail of factors – including a tight monetary policy stance, banks’ portfolio rebalancing and a moderation in economic activity – have taken their toll, data from the Bank of Ghana (BoG) have shown. Private sector credit (PSC), in nominal terms, reached GH¢64.9billion at the end of April this year – a 19.74 percent increase over the GH¢54.2billion recorded at the same time in 2022. However, the growth rate was lower than the 26.5 percent recorded during same period of the previous year. A perusal of the…

24 May

Bank Of Ghana Act Needs Clarity – Governor Addison

wontumionlineBusinessBoG

The Governor of the Bank of Ghana (BoG) Dr Ernest Addison has said the current Act that governs the operations of the central bank needs clarification. For example, he said there is the issue of an emergency that needs to be properly defined. What do you call an emergency? He asked and further indicated that “Let us define it very carefully and make clear the conditions under which the rules can be breached.” Answering a question as to why the Act is being revised instead of an entirely new one being introduced, when he was addressing the 112th Monetary Policy Committee (MPC) press conference…

24 May

Investments, Loans Among Top 5 Products Of Banks With Complaints In 2022 – BoG

wontumionlineBusinessBanks, BoG, Investments, loans

The top five products or services that received most complaints in 2022 were investments, loans, current accounts, digital and electronic-money. For investments, the complaint data suggested that investment products and services witnessed delays with discounting, statement issuance, crediting matured investment or interest and roll overs on maturity. About loans, concerns that were raised on loan products/services were generally around changes in loan tenure and interest rate without borrowers’ consent, delays in processing loans, releasing collateral, issuing loan statements, recovery approaches and termination of loans. According to the Bank of Ghana Report on Complaint Management, investment products and services, comprising both…

23 May

No Bank Has Asked For Liquidity Support – BoG

wontumionlineBusinessBoG, Liquidity Support

The Governor of the Bank of Ghana (BpG) Dr Ernest Addison has said that at the moment no bank in Ghana has applied for liquidity support from the central bank. He however said the BoG stands ready to provide liquidity support to banks that ask for it but that will be done within the rules governing liquidity assistance. Answering questions during the 112th Monetary Policy Committee (MPC) press conference in Accra on Monday, May 22, Dr Addison said “we have not had any bank ask for liquidity assistance partly because of the regulatory reliefs that we gave them. “We reduced the reserve requirement as…

22 May

MPC To Hold 112th Press Conference Today; $3Bn IMF Bailout To Feature Strongly

wontumionlineBusinessBoG, IMF Bailout

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) will be holding its 112th Press conference today Monday, May 22. This will be the first MPC press conference after the approval of the $3billion external credit facility for Ghana by the International Monetary Fund (IMF). Issues about the bailout are expected to feature strongly in the address to be delivered by the Governor of the Bank of Ghana Dr Ernest Addison. https://twitter.com/thebankofghana/status/1660382782504271872 The Ministry of Finance confirmed that the first tranche of $600million of the $ 3 billion bailout has been received by the Bank of Ghana (BoG). The cash, according to the…

18 May

Finance Ministry, BoG To Sign Mou On How To Repay $3 Billion IMF Loan

wontumionlineBusinessBoG, Finance Ministry

The Bank of Ghana and the Ministry of Finance are expected to sign a Memorandum of Understanding that will outline the guidelines for repaying the $3 billion loan facility from the International Monetary Fund. The $3 billion loan which will be disbursed within 36 months has a 0% interest rate with a grace period of 5.5 years and a final maturity of 10 years. The programme under the Extended Credit Facility (ECF) is aimed at restoring macroeconomic stability and bringing fiscal operations and public debt to sustainable levels, supporting structural reforms, and promoting strong and inclusive growth while protecting the…