TIG Post

Tag: BoG

  • BoG never gave GN bank a bailout; our case is different – Group Nduom VP clarifies

    BoG never gave GN bank a bailout; our case is different – Group Nduom VP clarifies

    Vice President of Group Nduom, Nana Ofori Owusu, has clarified the fate of the GN Savings and Loans, as against other local banks whose licenses were revoked by the Bank of Ghana in 2017.

    He explained that, unlike the others, GN Bank before it was made savings and loans till its subsequent collapse never received a bailout from the Central Bank.

    This was after the Chairman of Groupe Ndoum and owner of the defunct Gold Coast Fund Management Company, Dr. Papa Kwesi Ndoum claimed over the weekend that the government still owes two of his companies and other subsidiaries over GH¢7 billion.

    To revive his companies, Dr Ndoum has called on the government to reimburse contractors who borrowed money from Groupe Ndoum.

    He argued that if the government had paid some of the contractors years ago, his companies would not have had the current financial challenges.

    Speaking on the matter on the Citi Breakfast Show on Tuesday, May 28, 2024, Mr Ofori Owusu, emphasised the uniqueness of GN Bank’s situation, distinguishing it from other cases in the banking sector.

    “A statement was made that some people have been jailed in the banking sector, I want people to understand that this is not a ‘banku effect’; that everybody is the same.

    Somebody was jailed for taking a bailout from the Bank of Ghana and using it in a way that was not appropriate. With the GN bank matter, GN has never taken a bailout from the Bank of Ghana,” he stated.

    The conversation around bailouts and financial misconduct in the banking sector was reignited by the recent imprisonment of William Ato Essien, the former CEO of the now-defunct Capital Bank.

    On October 15, an Accra High Court, led by Justice Kyei Baffour, sentenced Mr Essien to 15 years of imprisonment with hard labour after he failed to repay GH¢90 million to the state as ordered by the court.

    Mr Essien had previously struck a deal with the state under section 35 of the Courts Act, which allows for an accused person to plead guilty and make restitution for financial losses to the state, potentially avoiding a custodial sentence.

    Despite this agreement, he did not fulfil his financial obligations within the stipulated timeframe.

  • Address abuses within the Forex Bureau market – Richard Ahiagbah to BoG

    Address abuses within the Forex Bureau market – Richard Ahiagbah to BoG

    Director of Communications for the governing New Patriotic Party (NPP), Richard Ahiagbah, has urged the Bank of Ghana (BoG) to diligently fulfil its regulatory obligations to address abuses within the Forex Bureau market, which directly impact the performance of the Cedi against major currencies.

    Mr Ahiagbah emphasized the need for proactive measures to counteract these challenges and stabilize the currency.

    Mr Ahiagbah noted that currencies across the Sub-Saharan Africa (SSA) region, including the Cedi, have been experiencing fluctuations due to the appreciating value of the dollar during the first quarter of 2024.

    This trend has exerted pressure on local currencies, contributing to their depreciation against the dollar.

    Despite these challenges, Ahiagbah commended the Ministry of Finance for its efforts in mitigating the impact of the appreciating dollar on the cedi. He acknowledged the ministry’s role in implementing measures to cushion the cedi’s performance amidst external market pressures.

    “The Bank of Ghana must persistently discharge its regulatory mandate to deal with the flagrant abuses in the FX market that contribute directly to the cedi’s performance. We are destined to overcome!” Mr Ahiagbah posted on X.

    Responding to regulatory concerns, the Bank of Ghana (BoG) has established a task force dedicated to overseeing all foreign exchange bureaus and ensuring compliance with regulatory standards. Dr. Ernest Addison, the Governor of the Bank, announced this during the 118th monetary policy statement on Monday, May 27, 2024.

    The primary objective of this task force is to address the activities of illegal operators within the foreign exchange market and promote enhanced market transparency.

    By closely monitoring the operations of these bureaus, the BoG aims to mitigate unauthorized practices and foster a more regulated and transparent environment within the foreign exchange sector.

  • 10 ways ‘failed’ BoG’s Ernest Addison destroyed the Ghana Cedi and the Ghana economy

    10 ways ‘failed’ BoG’s Ernest Addison destroyed the Ghana Cedi and the Ghana economy

    Ghana’s central bank, the Bank of Ghana (BoG), has faced criticism for various reasons contributing to economic challenges.

    Here are 10 reasons often cited for why it is perceived to have failed the economy:

    1. High Inflation Rates:

    The BoG has struggled to control inflation, which has remained persistently high. This erodes purchasing power and savings, leading to reduced consumer confidence and economic instability.

    In January 2023, Ghana’s inflation rate surged more than expected in December, driven by steep increases in food, transport, and housing costs in the West African country.

    Annual inflation quickened to 54.1% in the world’s second-largest cocoa producer, from 50.3% a month prior, government statistician Samuel Kobina Annim told reporters.

    As of April 2024, the country’s inflation stood at 25%.

    2. Currency Depreciation:

    The Ghanaian cedi has experienced significant depreciation against major currencies. This instability affects import costs, increases inflationary pressures, and undermines investor confidence.

    In 2022, Ghana’s cedi slumped to become the world’s worst-performing currency as investors continued to squeeze foreign capital into the West African country before a deal with the International Monetary Fund.

    The cedi continues to depreciate faster against the dollar and other international currencies. In the first four months of 2024, the cedi has depreciated by 14% against the dollar.

    3. High Interest Rates:

    In attempts to curb inflation and stabilize the currency, the BoG has maintained high interest rates. This makes borrowing costly for businesses and individuals, stifling economic growth and investment.

    Ghana’s central bank in July 2023, called for tighter fiscal policy to help bring down stubbornly high inflation as it hiked its main interest rate by another 50 basis points to 30.0%

    As of May 27, 2024, the central bank held its main interest rate steady at 29% for the second meeting in a row, as a slide in the local cedi currency has slowed inflation’s decline.

    4. Poor Monetary Policy Implementation:

    Critics argue that the BoG’s monetary policies have been ineffective or poorly timed, failing to address underlying economic issues or exacerbating existing problems.

    In a recent announcement, the Bank of Ghana (BoG) has decided to maintain its Monetary Policy Rate at a significant 29 percent. This decision comes after a prior 100-basis-point cut in the policy rate took it to the current 29 percent back in January.

    There have been several calls by stakeholders for a reduction in the monetary policy rate. Economist and Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, wants the policy rate slashed by at least 200 basis points.

    5. Weak Financial Sector Oversight:

    The BoG has been criticized for inadequate regulation and oversight of the banking sector, leading to a banking crisis with the collapse of several banks and microfinance institutions, which shook public confidence.

    In 2017, the BoG Director, Dr Ernest Addison admitted that “the poor banking practices, coupled with weak supervision and regulation by the Bank of Ghana has significantly undermined the stability of the banking and other non-bank financial institutions and we all know some of the consequences by now—revocation of licenses of two banks while other banks were placed under comprehensive capital restoration plans.”

    6. Lack of Transparency and Accountability:

    There have been concerns about the transparency and accountability of the BoG’s operations, including its handling of monetary policy decisions and financial sector interventions.

    In 2022, the Minority noted that the money said to have been injected into the economy by the central bank was done illegally, “hence the 33.8% growth in BoG’s balance sheet as at June 2022.”

    In its defence, the Bank of Ghana said the amount of GH¢22.04 claimed to have been printed represented net claims on Government, and not new currency printed to support the Government’s budget.

    7. Debt Management Issues:

    The BoG has struggled with managing the country’s debt levels, contributing to high public debt. This impacts the economy by diverting resources from development projects to debt servicing.

    Ghana’s public debt increased by GH¢46.4 billion in the first two months of 2024, reaching GH¢658.6 billion ($53.1 billion), according to data from the Bank of Ghana.

    This total public debt stock is equivalent to 62.7% of the country’s Gross Domestic Product (GDP).

    The Central Bank’s May 2024 Summary of Economic and Financial Data revealed that the country’s debt, which ended 2023 at GH¢611.2 billion, increased to GH¢626.0 billion in January 2024 and further to GH¢658.6 billion in February 2024.

    With a public debt of GHC 658.6 billion and a population of 33.48 million, the average Ghanaian owes approximately GHC19,671.45.

    8. Ineffective Communication:

    The central bank’s communication strategies have often been deemed insufficient, leading to a lack of clear guidance for the market and the public on policy intentions and economic outlook.

    9. Outrageous $250m new Headquarters

    The Governor of the Bank of Ghana, Ernest Addison is seeing to the use over $250 million dollars, an equivalent of GH¢2.8 billion to build a new central bank headquarters despite seeing to losses totalling GHS60 billion cedis.

    These factors collectively highlight the challenges the BoG faces in stabilizing and growing Ghana’s economy effectively.

    BoG has strongly defended its decision to construct a new headquarters, stating that its current office is no longer suitable due to safety concerns. The Central Bank stressed a new head office is a necessary investment to ensure the operational efficiency of the bank and to position Ghana as a financial hub in the sub-region. 

    10. Printing of money without discretion

    The Bank of Ghana (BoG) has engaged in an alarming spree of money printing over the past three years.

    The Central Bank printed a staggering GHS35 billion in 2021 and GHS42 billion in 2022 to support the Akufo-Addo-led government.

  • Desperate BoG orders Forex Bureaus to stop advertising FX rates outside their shops

    Desperate BoG orders Forex Bureaus to stop advertising FX rates outside their shops

    Governor Addison emphasized the Bank’s substantial foreign exchange reserves, advising against speculative purchases, which could lead to economic losses when corrections occur.

    At the 118th Monetary Policy Committee press conference on Monday, May 27, the BoG announced measures to enhance market conduct and maintain order in the foreign exchange market.

    The Bank has collaborated with the Ghana Association of Banks to streamline documentation for foreign payments, reducing reliance on informal markets.

    To address high demand pressures, the BoG has recently absorbed foreign exchange needs from some corporate institutions, easing pipeline demand from commercial banks.

    Aware of illegal operators, the BoG is working with the Financial Intelligence Centre to clean up the foreign exchange market. Monitoring of foreign exchange bureau will be intensified to ensure compliance with regulations.

    Foreign exchange bureaux must stop advertising rates outside their premises and on social media. The BoG has established a task force to oversee compliance. Election-year sentiments and statements affecting market confidence should be managed carefully.

    In fiscal policy, expenditures exceeded revenue growth in the first quarter due to early IPP arrears payments. Maintaining fiscal discipline throughout the year is crucial for economic confidence.

    The committee noted that consistent implementation of macroeconomic and structural reform policies aligns with the IMF-supported program. Efforts should prevent recent currency depreciation from affecting business pricing and inflation expectations.

    The reserve build-up of about US$2 billion since the IMF program began, along with strong disinflation, fiscal consolidation progress, positive current account balances, and external debt restructuring advances, have provided buffers to support the exchange rate.

    Forecasts indicate a slightly elevated inflation profile due to recent exchange rate pressures and transportation fare adjustments. However, inflation is expected to stay within the monetary policy consultation range of 13-17 percent by year-end, contingent on maintaining a tight monetary policy and aggressive liquidity management.

    “Given these considerations, the Committee decided to maintain the Monetary Policy Rate at 29 percent,” he said.

  • Ghana’s public debt grew by GHS46.4bn in Jan-Feb 2024 – BoG

    Ghana’s public debt grew by GHS46.4bn in Jan-Feb 2024 – BoG

    Recent data from the Bank of Ghana revealed that the country’s public debt stock increased by GH¢46.4 billion in the first two months of 2024, reaching GH¢658.6 billion ($53.1 billion).

    In terms of Gross Domestic Product (GDP), Ghana’s total public debt now stands at 62.7 percent.

    The BoG’s Summary of Economic and Financial Data for May 2024 indicated that the country’s debt was GH¢611.2 billion at the end of 2023, rose to GH¢626.0 billion in January 2024, and further increased to GH¢658.6 billion in February 2024.

    This rise in public debt is attributed to the persistent depreciation of the cedi, coupled with increased government borrowing in the domestic treasury bills market.

    On the domestic debt front, the data showed an increase of GH¢18.5 billion in the first two months of 2024, representing approximately 36.1 percent of GDP.

    As of February 2024, domestic debt stood at GH¢278.7 billion, also representing 36.1 percent of GDP.

    Regarding external debt, it rose by GH¢28.9 billion due to the cedi’s depreciation against major trading currencies during this period.

    Additionally, the external component of the total public debt stock was $30.6 billion (GH¢350.3 billion) in February 2024, equivalent to 36.1 percent of GDP.

    The Central Bank’s Summary of Economic and Financial Data for May 2024 also showed that government fiscal operations were on track, with a deficit-to-GDP ratio of 2.6 percent in the first quarter of 2024, compared to 1.8 percent during the same period in 2023.

    Meanwhile, the primary balance showed a deficit of 1.4 percent of GDP in March 2024.

  • IEA urges BoG to implement currency board instead of Central Bank system

    IEA urges BoG to implement currency board instead of Central Bank system

    The Institute of Economic Affairs (IEA) suggests that the Bank of Ghana (BoG) should consider adopting a currency board instead of the current central bank system.

    According to the IEA, this change would help ensure the stability of the Cedi as a legal tender by ensuring that circulating Cedis are fully supported by Forex reserves.

    In a statement issued on Monday, May 20, the IEA put forward several proposals for the government to address the declining value of the Cedi.

    One of these proposals from the IEA is that the currency board should refrain from providing loans to the government or banks.

    The IEA is hopeful that implementing these measures will lead to a reduction in Cedi depreciation and inflation.

    “An alternative to full dollarization is to adopt a currency board system in place of the central bank system. In that case, the cedi would be maintained as legal tender. However, the currency board would ensure that cedis in circulation are fully backed by FX. The cedi would also be pegged to the dollar at a fixed rate. Further, the currency board would not lend to the Government or banks.

    “With these conditions in place, cedi depreciation and inflation would be minimised. However, the currency board has limitations, including the potential loss of independent monetary policy and loss of lender-of-last-resort function.”

    The IEA emphasized that stabilizing the Cedi is a multifaceted endeavor, necessitating unified efforts to accomplish this formidable objective.

    “Some of the measures may reinforce others while some may preclude others. We are proposing them for consideration by our economic managers and to prompt debate on what is obviously one of the most important national challenges.

    “We do not believe that stabilising the cedi is rocket science. We only need to take concerted actions to achieve that ever-elusive goal. Not acting while the cedi continues to bleed is not an option!.”

  • BoG makes no profit from high interest rates – Governor to Togbe Afede

    BoG makes no profit from high interest rates – Governor to Togbe Afede

    Bank of Ghana (BoG) has denied allegations of profiting from elevated interest rates.

    In a statement released on its official X account, formerly Twitter, the Central Bank clarified that the increased interest rates actually escalate the expenses related to open market operations, ultimately leading to financial losses for the bank.

    “Bank of Ghana does not benefit from high interest rates. On the contrary, high interest rates raise the cost of open market operations and lead to central bank losses.

    But it is a necessary price to pay to bring down inflation,” the Bank of Ghana said on May 18, 2024.

    This reaction follows criticism from businessman and the Agbogbomefia of the Asogli State, Togbe Afede XIV, who accused the Bank of Ghana of unfairly benefiting from its policy of maintaining high interest rates, as outlined in an opinion piece.

    Togbe Afede XIV expressed concerns that these interest rates, which he deemed as “unnecessarily high,” could exacerbate challenges faced by the local currency if appropriate actions are not taken to address the issue.

    He further warned that the performance of the cedi is likely to suffer from ripple effects on the prices of goods and services, consequently impacting the overall cost of living.

    “The truth is, all these variables are related. While the policy rate is an important tool of monetary policy, its misuse, as in our case, can have damaging effects.

    As long as interest rates are kept unnecessarily high, our currency, the cedi, will continue to suffer adverse consequences, with pass-through effects on other prices, including transport fares, utility tariffs, and fuel prices.

    Persistent cedi depreciation has been a key factor in our energy (including power) sector problems. We have always felt the need to adjust prices, not because consumers were not paying enough, but because the cedi has been depreciating,” Togbe Afede XIV wrote.

    He added, “BOG concluded that their monetary policy rate decision underscores their commitment to balancing economic stability amid persistent ‘inflationary risks’ and supporting the sustainable growth of the economy.

    But economic stability and sustainable high growth will remain elusive as long as interest rates stay astronomically high.”

  • Central Bank concludes initial proof of Concept within Project DESFT

    Central Bank concludes initial proof of Concept within Project DESFT

    The Bank of Ghana (BoG) has successfully concluded the initial Proof Of Concept (POC) within the framework of Project Digital Economy Semi-Fungible Token (DESFT).

    This achievement showcases the effective facilitation of cross-border transaction payments through the utilization of digital credentials, the eCedi, and an authorized stablecoin from Singapore.

    Mr. Kwame Oppong, Director of the Fintech And Innovation Office at BoG, highlighted during the launch event for the Completion Of Cross-Border Trade Using Digital Credentials, that the Central Bank, in collaboration with MAS, launched Project DESFT in June 2023.

    The initial stage of the project focused on developing a reliable credential system enabling SMEs to convert essential information, including licenses, certificates, and trade records, into verifiable digital credentials stored on a secure distributed ledger system. This allows potential trading partners and financial institutions to efficiently authenticate such information.

    Expanding on this foundation, Phase 2 of Project DESFT was implemented in April 2024, featuring a cross-border trade between Ghana and Singapore. This phase utilized the DESFT solution, Universal Trusted Credentials (UTC), a Singapore Stablecoin, Ghana’s recently piloted Central Bank Digital Currency (CBDC) – the eCedi, and the Purpose Bound Money protocol.

    Mr. Oppong emphasized that the live transactions demonstrated the practicality of leveraging Ghana’s proposed domestic retail CBDC platform, the eCedi, in cross-border trade operations.

    “This affirms the potential of the eCedi system demonstrated for future interoperability with various cross-border credential and payment platforms,” he added.

    He mentioned that the upcoming launch of the eCedi could greatly improve Ghana’s payment system, promoting inclusivity and innovation while enhancing consumer satisfaction.

    The Director highlighted that through its compatibility with the DESFT system and verifiable credentials via UTC, the eCedi could enable Ghanaian Micro, Small, and Medium Enterprises to engage in global trade more affordably.

    Project DESFT aims to assist African SMEs in international trade by addressing major hurdles like building trust with foreign trade partners and accessing assistance in cross-border payments and supply chain finance.

    “We believe that the new generation of financial technology offers innovative approaches to these challenges. After nearly a year and two phases of development, we have crafted a reliable information exchange solution founded on UTC standards and Semi-fungible Token technology,” he said.

    He mentioned that the Bank had thoroughly tested a cross-border payment solution based on the Purpose Bound Money (PBM) principles and conducted actual trade trials that completely matched our set goals.

    The upcoming phase of Project DESFT will further expand on the current accomplishments, concentrating on highly automated digital credential procedures, programmable payments involving various digital currencies, and assistance for supply chain finance.

  • BoG foresees significant enhancement of Ghana’s payment ecosystem with eCedi

    BoG foresees significant enhancement of Ghana’s payment ecosystem with eCedi

    The Bank of Ghana (BoG) has declared the first Proof of Concept (PoC) for Project Digital Economy Semi-Fungible Token (DESFT) successfully completed.

    This milestone showcases the effective execution of a cross-border transaction using digital credentials, namely the eCedi and an approved stablecoin from Singapore.

    Collaborating with the Monetary Authority of Singapore (MAS), the BoG initiated Project DESFT in June 2023.

    During the initial phase, the project focused on designing and developing a trusted credential system.

    This system enables Small and Medium-sized Enterprises (SMEs) to convert essential information such as credentials, licenses, certificates, and trade records into verifiable digital credentials. These are stored on a secure distributed ledger system, facilitating efficient verification by potential trade partners and financial institutions.

    Building on this foundation, Phase 2 of Project DESFT, conducted in April 2024, successfully conducted a cross-border trade between Ghana and Singapore.

    This was achieved using the DESFT solution, Universal Trusted Credentials (UTC), a Singapore Stablecoin (xSGD), Ghana’s Central Bank Digital Currency (CBDC) – the eCedi, and the Purpose Bound Money (PBM) protocol.

    According to the BoG, these live transactions further validate the potential of utilizing the proposed Ghanaian domestic retail CBDC platform, the eCedi, in cross-border transactions.

    “Project DESFT is aimed at supporting SMEs in Africa to engage in international trade by removing significant obstacles they face, such as establishing trust with overseas trade partners and obtaining support in cross-border payments and supply chain finance. We believe that the new generation of financial technology offers innovative approaches to
    these challenges. After nearly a year and two phases of development, we have crafted a reliable information exchange solution founded on UTC standards and Semi-fungible Token technology.

    “Furthermore, we have rigorously tested a cross-border payment solution built upon the principles of Purpose Bound Money (PBM) and conducted real trade experiments which fully align with our predetermined objectives.

    “The next phase of the Project DESFT will continue to build upon the current achievements, focusing on highly automated digital credential processes, programmable payments across multiple digital currencies, and support for supply chain finance.”

  • BoG spent GHS6bn on its employees in 6 years – Report 

    BoG spent GHS6bn on its employees in 6 years – Report 

    A recent report from JoyNews has revealed that the Bank of Ghana (BoG), allocated a substantial 6 billion Ghanaian Cedis toward employee costs spanning from 2017 to 2022.

    The report dived into the workforce statistics of the Bank of Ghana, noting that the total staff count, including directors, stands at 2,215 individuals.

    Analysis of the data unveiled a steady increase in BoG’s expenditure on staff salaries and benefits over the years. In 2017, the bank allocated 596.2 million Ghanaian Cedis for employee costs, witnessing a notable surge from the previous year.

    By 2018, this figure climbed to 697.3 million Ghanaian Cedis and further escalated to 809.8 million Ghanaian Cedis in 2019.

    The onset of the Covid-19 pandemic brought about unprecedented financial challenges, evident in the bank’s expenditure.

    During this period, BoG’s spending on personnel costs exceeded the billion-mark, totaling more than 1 billion Ghanaian Cedis.

    “The research team, we have been looking at the Bank of Ghana’s (BoG) financial statement, their audited statement right from 2017 to 2022 and we have found out that some interesting revelation in there and just like you captured in your intro. If you look as of 2022  Bank of Ghana’s staff number in terms of their staff plus their directors we are talking about 2, 215 workers.

    “Now what has become the bone of contention has been the amount the bank spent on their personnel. So we have been looking at how much BoG spent on their staff plus their directors. We looked at the data from 2017 BoG spent GH592.200,000.00 Ghana cedis on their personnel cost. In 2016 this number rose to 697.300,000.00 Ghana Cedis then crossed to 809.800,000.00. Then we have our first billion during the Covid season where BoG spent more than 1 billion Ghana Cedis on personnel costs,” a member of Joy News’ research team disclosed.

    The significant allocation of funds toward employee expenses has sparked discussions regarding fiscal prudence and resource management within the Bank of Ghana.

    Critics have raised concerns over the sustainability of such expenditure patterns, especially considering evolving economic dynamics and the imperative for efficient resource allocation.

    Meanwhile, Togbe Afede XIV, the Agbogbomefia of the Asogli State, has alleged that the Bank of Ghana allocated a substantial amount of GH₵1.62 billion (£147.27 million at the 2022 average cedi-pound exchange rate) for the salaries of its 2,203 employees.

    Drawing comparisons between the Bank of Ghana and the Bank of England (BOE), Togbe Afede XIV highlighted a significant disparity. While the BoG pays an average of £66,851 per employee, the BOE pays substantially higher at £95,829 per employee.

    Furthermore, Togbe Afede XIV pointed out a distinct difference in the financial circumstances of the staff. Unlike the staff of the Bank of England, who do not owe loans to their employer, BoG staff carry an average debt of GH₵566,046 (£51,459) per employee as of the end of 2022.

    Expressing concern over the considerable sum of staff loans, totaling GH₵1.247 billion, with an average indebtedness of GH₵566,046 per employee, Togbe Afede XIV argued that such a financial burden should not be overlooked, especially amidst the current economic challenges faced by the country.

    In light of these revelations, Togbe Afede XIV urged a reassessment of the remuneration structure within the Bank of Ghana, emphasizing the necessity for equitable compensation practices aligned with prevailing economic realities and aimed at promoting financial stability for both the institution and its employees.

    “It is difficult to believe how some BoG’s operating incomes and expenses compare with those of the Bank of England (BOE). For example, BOG spent GH₵1.62 billion (£147.27 million at the 2022 average cedi-pound exchange rate) on its 2,203 employees, that is, £66,851 per employee, about 38x Ghana’s GDP per capita.

    “BOE on the other hand, with an average labour force of 4,675 per their 2021-22 financial report, spent £448 million, that is, £95,829 per employee, about 2.6x UK’s GDP per capita. Unlike BOE staff who do not receive loans from their employer, BOG staff owe the bank GH₵566,046 (£51,459) on average or per employee as at the end of 2022.”

    “The Bank’s personnel costs amounted to GH₵1.62 billion. With a total of 2,203 employees, this equals an average remuneration of a colossal GH₵735,361 per employee in 2022 or GH₵61,280 monthly per employee, including several allowances. These employees also had staff loans amounting to GH₵1.247 billion, an average of GH₵566,046 per head,” an excerpt of his piece said.

  • BoG Governor preaches fintech investment at 3i Africa Summit 

    BoG Governor preaches fintech investment at 3i Africa Summit 

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has emphasized the need for increased investment in Africa’s fintech sector.

    He believes that such investments are crucial for accelerating development and fostering innovation within the industry.

    Dr. Addison highlighted the importance of start-ups being able to access capital, as this plays a significant role in unlocking the sector’s potential.

    “…The lack of requisite investment in African fintechs could slow the pace of innovation and scalability of solutions in achieving the desired impact of a digitized Africa,” he said.

    Dr. Ernest Addison delivered these remarks during the 3i Africa Summit at the Accra International Conference Centre. The summit aimed to drive momentum for Africa’s digital finance agenda by bringing together finance, policy, and technology sectors.

    Dr. Addison emphasized the importance of directing adequate capital towards startups. This, he believes, will enable them to develop credible prototypes of home-grown solutions that address inefficiencies across the African continent.

    “Without sufficient capital, brilliant ideas and the prototypes of fintech startup solutions with the potential to address diverse financial service needs fail to progress to production,” Dr Addision said.

    Also present at the event was Finance Minster, Dr Mohammed Amin Adam.

    In his view, “for Africa to realise our development ambitions, we must all collate around an African agenda that delivers capital by leveraging public-private partnerships, venture capital, impact investing, and donor funding.

    “An agenda that delivers investments in digital infrastructure, extended mobile network coverage and established broadband networks for widespread fintech adoption and financial inclusion in underserved areas,” he added on Monday, May 13.

    Over the next three days, participants will engage in a multifaceted forum covering policy discussions, international intellectual resource alignment, entrepreneurial pursuits, and investment networking.

    The aim is to facilitate crucial conversations and strategic alliances that will nurture the growing African digital economy and fintech sector.

  • Gov’t authorised payment of $12m to Chinese company for Pwalugu Irrigation Project despite no work – BoG

    Gov’t authorised payment of $12m to Chinese company for Pwalugu Irrigation Project despite no work – BoG

    The Bank of Ghana (BoG) has addressed concerns regarding the disbursement of $12 million for the Pwalugu Irrigation Project, despite limited visible progress.

    The Central Bank clarified that the payment to contractors, MS Power China International Group Limited, was made based on government authorization.

    The clarification comes after questions were raised during a Public Accounts Committee meeting about the rationale behind the payment, sparking public concern.

    Bernard Otabil, the Director of Communication at the Bank of Ghana, explained in an exclusive interview with Citi News that the Bank’s role as a custodian of government accounts requires it to execute authorized transactions within its mandate.

    “We are the Central Bank, we are actually the chief cashiers of the government and we also hold all governments accounts. So, we would act on instructions that have been given to us. Once that approval has been sought and the project is started, then you would also have the role of the ministry of finance at some point, coming in to also look at what has been submitted and whether it is actually in line with what has been submitted with the contract that has been solely specified and when satisfied with the supporting documents that need to be presented.”

    “But finally, you will also have the Controller and Accountant General coming in and making that authorization for payment to be made and that comes to us.”

    “We will then go ahead to make the payment if the account is fully funded and therefore there will not be any form of disclosure on our part because it is the same. It is not different from any of the banking services that you are very much used to. In our unique position, we deal with the government and most of all the MDAs, but largely we are on the government’s side, we are the bankers of the government.  The government withdraws on its own account, let’s make that clear and nobody can issue a cheque on anybody’s account.”

  • Individuals who opted out of DDEP have been fully paid – BoG

    Individuals who opted out of DDEP have been fully paid – BoG

    Dr. Maxwell Opoku Afari, the first Deputy Governor of the Bank of Ghana (BoG), announced that the government has completed payments to all individuals who chose to opt out of the domestic debt exchange programme (DDEP) last year.

    He also mentioned that institutions that participated in the program have begun receiving their payments, both in cash and kind. Dr. Opoku Afari made these statements on behalf of the BoG Governor at the launch of the Commercial Paper Market by the Ghana Stock Exchange.

    He emphasized the central bank’s commitment to ensuring timely payments to attract more investors.

    “So far the market has been calm, backed by some recent debt servicing by the government. On various due dates, the government has paid all cash coupons and payments in kind coupons on the domestic debt exchange bonds. The government has also paid all individuals who opted out of the domestic debt exchange exercise”, he said.

    Additionally, he stated that the government has commenced payments to institutional holders who did not participate in the domestic debt exchange programme.

    “In the last two weeks, about ₵200 million was paid to institutional investors. Economic activities are picking up” he disclosed.

    The launch of the Commercial Paper Market underscores the Exchange’s commitment to introducing new investment products catering to both short-term and long-term investors on the Ghana Stock Exchange.

    Dr. Afari, serving as the Chairman of the Fixed Income Market Council, encouraged investors to capitalize on the current economic climate to increase their investments in the private sector. He also urged the managers of the Ghana Stock Exchange to innovate and introduce new products to the market.

  • OmniBSIC tops banks offering lowest interest rate on loans to SMEs – BoG

    OmniBSIC tops banks offering lowest interest rate on loans to SMEs – BoG

    OmniBSIC Ghana Ltd offered the lowest interest rate of 33.06 percent on loans to Small and Medium Enterprises (SMEs) with a tenure of 5 years in March 2024, according to a recent report from the Bank of Ghana.

    Following closely behind, Republic Bank provided loans at a rate of 35.02 percent, while Standard Chartered Bank offered loans at 35.81 percent under the same tenor.

    The Annualized Percentage Rate (APR) report, released by the Bank of Ghana in April 2024, surveyed interest rates offered by 23 banks operating in the country.

    “The APR reflects the true cost of a loan that economic agents are confronted with when they go through an approval process to secure a loan facility. It comprises the Ghana Reference Rate, bank specific risk-premia and other bank-specific charges” the Bank of Ghana said.

  • BoG yet to provide documents on $11.9M paid to Chinese company for no work done on Pwalugu Dam project

    BoG yet to provide documents on $11.9M paid to Chinese company for no work done on Pwalugu Dam project

    On April 8, 2024, while before the Public Accounts Committee, the Governor of the Bank of Ghana, Dr Ernest Addison, could not justify a $11.9 million paid to MS Power China International Group Limited for the Pwalugu Irrigation Project.

    It was reported by the Member of Parliament (MP) for Komenda-Edina-Eguafo-Abrem (KEEA) Constituency in the Central Region, Mr Samuel Atta-Mills, that no work had been done on the site.

    “I thought before payments are made, contractors would present certificates. When you get to Pawlugu, there is nothing there. There is no pole or signboard,” he said.

    The PAC demanded documentation from the Bank of Ghana to investigate these transactions further.

    Since the BoG’s meeting with PAC, a month ago, there has been no response from both parties, as to whether the Bank of Ghana has provided documents on the monies paid to the Chinese company.

    On November 29th, 2019, the President of the Republic of Ghana, His Excellency (H.E.) Nana Addo Dankwa Akufo-Addo, cut the sod for the construction of the Pwalugu Multi-Purpose Dam Project.

    The project, which is the single largest investment ever made in the northern part of Ghana, and estimated to cost US$993 million, would consist of a Hydro-Solar hybrid system of 60 MW hydropower and 50 MW solar power.

    The two technologies would complement each other to provide a reliable and stable electricity supply to the national grid. The project would also provide an irrigation scheme covering an area of twenty-five thousand (25,000) hectares and improve water supply to the Northern parts of the country.

    In addition, the Multi-Purpose Dam, expected to have been completed in four years, would control the perennial flooding in the northern regions caused by heavy rains and the spillage from the Bagre Dam.

  • BoG refutes claims regarding the implementation of a 1% cybersecurity levy

    BoG refutes claims regarding the implementation of a 1% cybersecurity levy

    Bank of Ghana (BoG) refutes rumours about a one percent cybersecurity levy on banking transactions.

    Reports circulating on social media suggested that the Central Bank intended to impose this levy in response to rising cybersecurity threats.

    However, in a statement posted on Tuesday, the BoG dismissed these claims as untrue.

    The Central Bank urged the public to disregard such reports.

  • Protecting depositors funds and banking stability our priority – BoG

    Protecting depositors funds and banking stability our priority – BoG

    The Bank of Ghana (BoG) affirms its commitment to closely monitor and regulate financial institutions within the country, ensuring the stability and integrity of the banking sector.

    According to the Central Bank, maintaining vigilant oversight in the banking industry is paramount to mitigating risks and fostering trust in the financial system.

    Speaking at the name change and gala dinner of FBN Bank Ghana Limited, Governor Dr. Ernest Addison emphasized that the BoG remains dedicated to safeguarding depositors’ funds while upholding the stability and soundness of the banking system.

    “Let me note that, to protect depositors, while ensuring the stability and soundness of the banking system, the Bank of Ghana will continue to be vigilant to ensure that banks comply with regulatory requirements and guidelines to build trust and confidence in our financial institutions”.

    Dr. Addison further emphasized that the BoG will not hesitate to take disciplinary action against institutions found to be in breach of regulatory standards.

    “As the regulator, the Bank of Ghana is fully committed to remain vigilant in its oversight operations of all financial institutions in Ghana. Notwithstanding this, Banks have continued to breach guidelines that have been set to ensure that our banking system remains safe and sound and free from all facets of financial crime including money laundering, fraud, terrorist financing, corruption, market manipulation, insider dealings and cybercrime.”

    Meanwhile, banks are encouraged to embrace fintech advancements as catalysts for delivering innovative financial products and services. Additionally, amidst growing concerns regarding environmental sustainability and social responsibility, banks are urged to adopt Environmental, Social, and Governance (ESG) frameworks to guide their operations and investment decisions.

    “The banking sector operations and services are rapidly evolving, driven by financial technology advances. The emergence of fintechs in the financial ecosystem, and their delivery of innovative financial products and services, has rejuvenated the adoption and diffusion of technology in every sphere of banking sector operations, which have supported the financial inclusion agenda”, Governor Dr. Ernest Addison added.

  • Professor Bokpin urges BoG to implement sustainable policies beyond IMF Program

    Professor Bokpin urges BoG to implement sustainable policies beyond IMF Program


    Economist Professor Godfred Bokpin encourages the Bank of Ghana (BoG) to adopt medium-to-long-term plans for maintaining Ghana’s macroeconomic stability and instilling confidence in the market.

    According to the finance professor at the University of Ghana, these measures should go beyond the current US$3 billion IMF loan-support program.

    This approach would promote the long-term stability of the Cedi against the Dollar and maintain inflation within levels conducive to economic growth and stability.

    His suggestion comes after a notable reduction in the Cedi’s depreciation against the Dollar and a decrease in inflation rates.

    Speaking to the Ghana News Agency in Accra, Prof Bokpin praised the Central Bank’s role in the country’s economic recovery but cautioned that the current macroeconomic progress is not robust.

    Before securing the IMF loan-support program, Ghana’s inflation rate was 54.1% in December 2022, dropping to 23.2% in December 2023, but rising to 25.8% by March 2024.

    President Nana Addo Dankwa Akufo-Addo reported a nine percent cumulative depreciation of the Cedi between February and December 2023 during the 2024 State of the Nation address in February.

    Nonetheless, Prof Bokpin emphasizes the necessity for the Central Bank to devise a medium-to-long-term strategy beyond reliance on the IMF program for maintaining macroeconomic credibility and trust.

    “The gains made so far is quite fragile, so we must work hard to consolidate it beyond the expiration of the IMF programme by being disciplined and efficient with our expenditure as we’re in an election year,” he recommended.

    Additionally, Prof Bokpin advocated for structural changes to ensure the Central Bank’s independence. He highlighted instances where the Bank resisted certain government decisions but ultimately yielded to governmental influence.

    “From the COVID-19 pandemic era, the pronouncement of the Governor showed signals to the market that he was not happy with the way the fiscal side was intruding into the monetary side of the economy, but he succumbed to that political cannibalisation,” he said.

    He also mentioned that the Central Bank vehemently opposed the haircut proposed under the Domestic Debt Exchange Programme (DDEP) and actively resisted it during the 2023 spring meetings.

    Nonetheless, the Bank had no choice than to sacrifice its balance sheet, leading to the BoG suffering a 50 per cent haircut on government’s debt, something the Bank said it did “to save the economy from collapsing”.

    “The Central Bank must be bold in saying that the fiscal side is messing us up; when they admit and speak truth to power, without fearing that they’ll be fired, this country will begin to have a turn for good,” Prof Bokpin said.

  • Pay attention to sustainable strategies over the IMF program – Professor Bokpin to BoG

    Pay attention to sustainable strategies over the IMF program – Professor Bokpin to BoG

    Finance expert at the University of Ghana, Professor Godfred Bokpin, has urged the Bank of Ghana (BoG) to implement medium-to-long-term strategies aimed at sustaining Ghana’s macroeconomic stability and bolstering market confidence.

    These measures, according to him, should go beyond the current US$3 billion loan-support program with the International Monetary Fund (IMF) to ensure the long-term stability of the Cedi against the dollar and to keep inflation within a range conducive to economic growth and stability.

    His recommendation comes in light of recent efforts to contain the depreciation of the Cedi against the Dollar and to manage inflation.

    While acknowledging the Central Bank’s role in the country’s economic recovery, Professor Bokpin emphasized that the macroeconomic progress observed thus far is not sufficiently robust.

    Prior to obtaining the IMF loan-support program, Ghana’s inflation rate stood at 54.1 percent in December 2022, decreased to 23.2 percent in December 2023, and then rose to 25.8 percent by March 2024.

    President Nana Addo Dankwa Akufo-Addo revealed in his February 2024 State of the Nation address that the Cedi had experienced a cumulative depreciation of nine percent between February and December 2023.

    However, Professor Bokpin emphasised the need for the Central Bank to engage in introspection and develop a medium-to-long-term strategy to ensure macroeconomic credibility and trust beyond reliance on an IMF program.

    “The gains made so far are quite fragile, so we must work hard to consolidate them beyond the expiration of the IMF programme by being disciplined and efficient with our expenditures as we’re in an election year,” he recommended.

    Prof. Bokpin also called for structural reforms that would guarantee the independence of the Central Bank, citing cases where the Bank opposed some government decisions yet had to succumb to government pressure.

    “From the COVID-19 pandemic era, the pronouncement of the Governor showed signals to the market that he was not happy with the way the fiscal side was intruding into the monetary side of the economy, but he succumbed to that political cannibalization,” he said.

    He also stated that the Central Bank expressed a strong disapproval of the haircut under the Domestic Debt Exchange Programme (DDEP) and fought against it during the 2023 spring meetings.

    Nonetheless, the Bank had no choice but to sacrifice its balance sheet, leading to the BoG suffering a 50 percent haircut on the government’s debt, something the Bank said it did “to save the economy from collapsing.”.

    “The Central Bank must be bold in saying that the fiscal side is messing us up; when they admit and speak truth to power, without fearing that they’ll be fired, this country will begin to have a turn for good,” Prof. Bokpin said.

  • A dollar goes for GHS14.25 at forex, BoG interbank rate at GHS13.25

    A dollar goes for GHS14.25 at forex, BoG interbank rate at GHS13.25


    The Interbank forex rates from the Bank of Ghana today, April 30, 2024, reveal that the Ghana Cedi is transacting against the dollar at a purchasing price of 13.2376 and a vending price of 13.2508.

    At a Forex bureau in Accra, the dollar is acquired at a rate of 13.95 and vended at 14.30.

    Versus the Pound Sterling, the Cedi is transacting at a purchasing price of 16.6118 and a vending price of 16.6298.

    At a Forex Bureau in Accra, the pound sterling is acquired at a rate of 17.10 and vended at a rate of 17.60.

    The Euro is transacting at a purchasing price of 14.1872 and a vending price of 14.2001.

    At a Forex Bureau in Accra, the Euro is acquired at a rate of 14.60 and vended at 15.10.

    The South African Rand is transacting at a purchasing price of 0.7099 and a vending price of 0.7102.

    At a forex bureau in Accra, the South African Rand is acquired at a rate of 0.40 and vended at a rate of 1.10.

    The Nigerian Naira is transacting at a purchasing price of 102.5188 and a vending price of 102.8314.

    At a forex bureau in Accra, Nigerian Naira is acquired at a rate of 9.00 Naira for every 1 Cedi and vended at a rate of 14.00.

    For the CFA, it is transacting at a purchasing price of 46.1938 and a vending price of 46.2358.

    At a forex bureau in Accra, CFA is acquired at 21.00 CFA for every 1 Cedi and vended at a rate of 23.00 CFA for every 1 Cedi.

    Note that these rates may differ at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

  • A dollar goes for GHS13.95 at forex, BoG interbank rate at GHS13.07

    A dollar goes for GHS13.95 at forex, BoG interbank rate at GHS13.07

    Today, April 23, 2024, the Bank of Ghana’s Interbank forex rates reveal that the Ghana Cedi is exchanging against the US Dollar at a buying rate of 13.0601 and a selling rate of 13.0731.

    In Accra’s Forex bureau, the Dollar is purchased at 13.60 Cedis and sold at 13.95 Cedis.

    Against the Pound Sterling, the Cedi is traded at a buying rate of 16.1109 and a selling rate of 16.1296.

    In an Accra Forex Bureau, the Pound Sterling is bought at 16.60 Cedis and sold at 17.10 Cedis.

    The Euro is quoted at a buying rate of 13.9007 and a selling rate of 13.9145.

    At an Accra Forex Bureau, the Euro is bought at 14.15 Cedis and sold at 14.65 Cedis.

    The South African Rand has a buying rate of 0.6818 and a selling rate of 0.6822.

    In Accra’s forex bureaus, the South African Rand is purchased at 0.40 Cedis and sold at 1.10 Cedis.

    The Nigerian Naira’s buying rate is 81.6655 and a selling rate of 83.4953.

    In Accra, the Nigerian Naira is bought at 9.00 Naira for every 1 Cedi and sold at 14.00 Naira.

    For the CFA Franc, the buying rate is 47.1420 and the selling rate is 47.1888.

    In Accra’s forex bureaus, the CFA is bought at 20.50 CFA for every 1 Cedi and sold at 22.50 CFA for every 1 Cedi.

  • Ghana’s reserve to benefit from US$360 million third tranche – Ernest Addison

    Ghana’s reserve to benefit from US$360 million third tranche – Ernest Addison

    Governor of the Bank of Ghana, Dr. Ernest Addison, has expressed optimism regarding Ghana’s foreign currency reserves strengthening with the anticipated disbursement of a third tranche of US$360 million from the International Monetary Fund (IMF).

    The approval for Ghana’s third tranche of US$360 million is expected during the Executive Board meeting of the IMF in June, following the staff-level agreement reached on the second review of the loan-support program.

    Speaking at a press briefing in Accra after concluding the staff-level agreement on Ghana’s second review of the three-year Extended Credit Facility (ECF) arrangement, Dr. Addison voiced confidence in the Board’s approval in June.

    Dr. Addison emphasized that this funding would contribute to bolstering the country’s foreign reserves, which amounted to US$6.2 billion as of April 5, 2024, and would support the objectives of the US$3 billion loan-support program.

    Foreign currency reserves, comprising cash and other assets like gold, held by central banks are crucial for maintaining stability in domestic currency and liquidity during economic crises, according to the World Economic Forum.

    He highlighted the productive two-week engagement between Ghanaian authorities and the IMF Staff Mission, culminating in the staff-level agreement.

    Furthermore, Dr. Addison expressed the government’s hopeful anticipation that this achievement would lead to “Management and Executive Board approval with the release of another tranche of IMF’s support.”

    Dr. Addison acknowledged that despite delays in the disbursement of some donor support, the country’s foreign exchange reserves remained steady at US$6.2 billion as of April 5, 2024.

    He affirmed the commitment to implementing policies that have sustained progress, including the innovative Gold for reserves program, which has significantly influenced foreign exchange management strategies.

    Regarding the progress made since the implementation of the loan-support program, Dr. Addison highlighted substantial macroeconomic dividends, including a significant drop in inflation from 54% at the end of 2022 to 23% in 2023.

    With the forthcoming US$360 million disbursement, Ghana’s total disbursement will amount to US$1.560 billion, having already received US$1.2 billion in the first two tranches since the program’s inception.

    The three-year ECF arrangement is supported by the country’s Post-COVID-19 Programme for Economic Growth (PC-PEG), aimed at restoring macroeconomic stability and debt sustainability, building resilience, and fostering stronger and more inclusive growth.

    Dr. Addison emphasized Ghana’s steadfast commitment to a set of policies since the program’s implementation, showcasing progress even under challenging circumstances.

    Stéphane Roudet, Chief of Mission for Ghana, acknowledged Ghana’s significant improvement in the external sector, with international reserve accumulation surpassing program objectives. However, he emphasized the importance of reaching an agreement with official bilateral creditors on an MoU consistent with the terms agreed in January 2024, as the next crucial step for Ghana.

  • BoG and Finance Ministry to collaborate on central bank recapitalization

    BoG and Finance Ministry to collaborate on central bank recapitalization

    The Governor of the Bank of Ghana (BoG), has indicated that discussions took place with the recently concluded IMF Mission team concerning the ramifications of the Domestic Debt Exchange Programme (DDEP) and its impact on the central bank’s financial position.

    The central bank’s annual financial statements for 2022 revealed a total loss of approximately GH¢60.8 billion, resulting in a negative equity of GH¢55.12 billion compared to a positive equity of GH¢5.7 billion in the previous year. These losses have been partially attributed to the government’s DDEP, which significantly affected the balance sheet during the period.

    To tackle this issue, Dr. Ernest Addison disclosed that there was a mutual understanding reached regarding the early recapitalization of the Bank of Ghana, with plans to sign a Memorandum of Understanding (MoU) with the Ministry of Finance for this purpose.

    Speaking at a joint press conference involving the IMF, Finance Ministry, and BoG held in Accra on April 13, 2024, Dr. Addison announced that Ghana had successfully reached a staff-level agreement with the IMF for the second review of the 17th bailout program.

    Furthermore, Dr. Addison mentioned that discussions had progressed regarding the government’s external debt restructuring program, with ongoing negotiations involving commercial creditors, bondholders, and bilateral creditors.

  • Expose persons suspected with money laundering and unexplained wealth – BoG urges public

    Expose persons suspected with money laundering and unexplained wealth – BoG urges public

    The Bank of Ghana (BoG) has urged the public to subject themselves to scrutiny regarding unexplained wealth and to report any suspicious financial transactions for investigation.

    According to the BoG, this initiative is a part of the efforts to combat money laundering within the country.

    These guidelines were outlined in the BoG’s notice concerning money laundering in Ghana.

    “Sudden unexplained wealth could be as a result of money laundering and you could be prosecuted. Be sure to be in a position to satisfactorily explain your sources of wealth”, BoG cautioned.

    The central bank urged the general public to collaborate with financial regulators by providing information regarding the source of funds used in various financial transactions across the country.

    Additionally, the BoG cautioned bank customers against allowing their accounts to be used by friends for transactions that lack independent verification.

    Money laundering involves the process of legitimizing money obtained from illegal activities like drug trafficking and corruption through complex transactions, a process known as ‘cleaning’, to conceal its illicit origin.

    Both the illegal activities generating ‘dirty’ money and the act of money laundering to legitimize these proceeds are subject to legal penalties.

    According to the BoG, money laundering not only undermines the credibility of financial institutions but also has wide-ranging implications for the economy, businesses, and society as a whole.

    To combat money laundering and terrorist financing, individuals may be required to disclose and substantiate the source of funds utilized in transactions across all BoG licensed and regulated institutions.

    In 2016, Ghana’s anti-money laundering, counter-financial terrorism, and proliferation financing regime were flagged for significant deficiencies during a mutual evaluation, resulting in greylisting by the Financial Action Task Force.

    Ghana was only removed from the grey list in 2020 following extensive reforms aimed at fortifying the regime.

    To sustain these achievements, the BoG cautioned that unexplained sudden wealth could be indicative of money laundering, potentially leading to legal action.

    Furthermore, it advised the public to be capable of satisfactorily explaining the sources of their wealth, reminding them that assets and properties acquired through money laundering activities are subject to confiscation, with individuals involved facing prosecution.

  • I never called NDC MPs hooligans – BoG Governor

    I never called NDC MPs hooligans – BoG Governor

    The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has denied allegations that he referred to members of Ghana’s Parliament Minority Caucus as ‘hooligans.’

    In October 2023, reports emerged alleging that the governor had disparaged MPs from the National Democratic Congress (NDC) who staged a protest demanding his removal due to his handling of the central bank’s affairs.

    He was quoted as saying in an interview with Central Banking,”Why did the minority fail to use other channels to get their grievances across but parade on the streets like hooligans?”

    However, Dr. Addison has firmly denied making such statements.

    He clarified his position during his appearance before the Public Accounts Committee (PAC) in Parliament on Monday, April 8, 2024.

    According to reports from citinewsroom.com, Dr. Addison emphasized that there is no recorded evidence of him making such remarks. He asserted that his words were misrepresented by the media outlet that conducted the interview.

    Furthermore, he stressed that such derogatory remarks are not in line with his character.

    “This is what I am coming to say that those who know me and know my character… you have not heard a single word of a recorded message with me describing parliamentarians in that manner.

    “This was some foreign journalist’s description of the conversation we had and I disowned it,” he is quoted to have said.

  • You will be forced to account for unexplained wealth – BoG tells public in fight against money laundering

    You will be forced to account for unexplained wealth – BoG tells public in fight against money laundering

    Ghana’s central bank has shed light on the potential repercussions individuals face when possessing sudden unexplained wealth, a situation often linked to money laundering, which could lead to incarceration upon prosecution.

    According to the latest Financial Literacy document released by the Bank of Ghana, individuals with sudden unexplained wealth are expected to furnish satisfactory explanations regarding the origins of their assets to relevant authorities.

    The bank cautioned the public to exercise caution when handling funds received from third parties via their bank accounts, emphasizing the potential legal ramifications.

    “Sudden unexplained wealth could be as a result of money laundering and you could be prosecuted. Be sure to be in a position to satisfactorily explain your source of wealth.

    “Don’t allow a third party to receive and or transfer funds through your bank account. You could be aiding money laundering or terrorist financing which is crime a punishable by law,” the bank said.

    The document emphasized that sudden unexplained wealth may be indicative of money laundering, a process through which unlawfully obtained money is laundered through intricate transactions to conceal its illegal origins.

    Additionally, the document highlighted the offense of ‘Terrorism Financing,’ warning of its severe economic, security, and social consequences for nations, businesses, and individuals.

    It stressed that financing terrorism is a punishable crime and individuals should not become conduits for such activities.

    “Terrorist financing includes the provision of funds and financial support to individuals, state and non-state actors for the purpose of extremist acts and the promotion of terrorism and terrorist organizations.

    “Financing of terrorism is a crime and is punishable by law. When you provide your legitimately or illegitimately acquired funds/assets for terrorist activities or organizations, you are financing terrorism. Be careful you do not become a conduit for such activities.

    “You may be required to disclose and prove the source of funds used to undertake transactions at all Bank of Ghana licensed and regulated financial institutions,” the Bank said.

    Furthermore, the bank underscored the importance of disclosing and substantiating the sources of funds used in transactions at all licensed and regulated financial institutions under the purview of the Bank of Ghana.

    Ghana’s commitment to combatting money laundering and terrorism financing was reinforced with the enactment of the new Anti-Money Laundering Act, 2020 (Act 1044) on December 29, 2020. This legislation consolidates laws related to the prohibition of money laundering and imposes strict penalties, including fines and imprisonment, for various money laundering infractions.

  • Comply with monthly reporting of fraud cases – BoG cautions banks

    Comply with monthly reporting of fraud cases – BoG cautions banks

    The Bank of Ghana (BoG) has issued a warning to banks, urging them to adhere to its monthly report on fraud cases.

    This measure is intended to assist the regulator in consolidating efforts to track fraudulent activities within the financial sector.

    Head of Financial Stability at the BoG, Dr. Kwasi Osei Yeboah, emphasized the bank’s commitment to collaborating with all financial sector players to cleanse the sector of fraudulent activities.

    He made these remarks at a workshop on Committee for Cooperation between Law Enforcement Agencies and the Banking Community.

    Dr. Yeboah stressed the importance of a collaborative effort from all stakeholders in addressing the issue of fraud in the financial sector.

    “This may be a hindrance to promote financial soundness and integrity because without that, people will not feel free to participate in product and services within the financial space”, he said.

    “Banks are supposed to report all the fraud case to the Bank of Ghana even when nothing happens. They still have to do it. For us, even if one fraud occurs, it is important to us because it speaks to the concerns that the consumer will have for the financial sector”, he added.

    The Bank of Ghana’s fraud report for 2023 revealed that the total loss value recorded by Banks and Specialised Deposit-Taking Institutions (SDIs) in 2022 was approximately GH¢56 million, compared to approximately GH¢61 million in 2021, indicating a 7.88% decrease from 2021.

    The report also indicated that there were 2,998 attempted fraud cases in the banking and SDI sectors in 2022, compared to 2,347 cases in 2021, representing a 27.74% increase.

    On his part, Chief Executive Officer of the Ghana Association of Banks, John Awuah, has advocated for a clear-cut approach to addressing fraud-related cases within the financial sector.

    “As we are moving a number of our operations to those platforms, confidence is very key in such cases on the part of our customers. As an association, we need a clear cut mechanism to get fraudsters apprehended because even one fraud is dangerous to the sector”, he stated.

  • BoG recieves $300m from World Bank to support infrastructural projects

    BoG recieves $300m from World Bank to support infrastructural projects

    The $300 million World Bank funding earmarked for various projects in 2024 has been successfully deposited into the Bank of Ghana’s (BoG) account.

    This transfer follows Ghana’s fulfillment of all prerequisites, including approval from both Cabinet and Parliament, facilitating the release of the funds to the nation.

    As of this morning, March 27, 2024, Joy Business reports that the transfer has been completed. The BoG is now tasked with converting the funds into cedi and distributing the equivalent amount to relevant government agencies and ministries.

    The “Foreign Exchange” portion of this funding could significantly bolster the Bank of Ghana’s international reserves. Recent data from the Bank of Ghana indicates that its Gross International Reserves surpassed $6 billion as of February 2024.

    During a recent media engagement, Finance Minister Dr. Mohammed Amin Adam stated that the government anticipates receiving approximately $1.2 billion from various development partners by the year’s end.

    Impact on Economy

    This disbursement will accelerate the progress of several infrastructure projects outlined in the 2023 Budget that were previously delayed due to the late arrival of financial support from Ghana’s donors.

    The World Bank was initially scheduled to disburse this funding late last year. However, delays in Ghana’s negotiations with bilateral creditors impacted the approval of the $300 million loan.

    These inflows are anticipated to mitigate the depreciation of the cedi. This is because they may signal to the international market that the Central Bank is now better equipped to stabilize the local currency.

    Focus of this facility

    The disbursement of this $300 million Development Policy Financing, the first in a series of three is for crisis response and resilience in Ghana. Its objectives are to:

    1) Restore fiscal sustainability;

    2) Support financial sector stability and private sector development;

    3) Improve energy sector financial discipline; and

    4) Strengthen social and climate resilience.

    It is expected to strengthen domestic revenue mobilisation, control expenditures, safeguarding financial sector stability, removing barriers to private investment, setting the energy sector on a sounder financial and operational footing, strengthening the country’s social protection system, and mainstreaming climate adaptation and mitigation across policies.

    Background

    This funding is a portion of the overall financial assistance Ghana received through the IMF program established in May 2023. To date, the IMF has provided Ghana with approximately $1.2 billion under the program.

    The World Bank describes the First Resilient Recovery Development Policy Financing as a crucial contribution from its International Development Association. This support aims to facilitate Ghana’s economic recovery and promote resilient and inclusive growth.

    In January 2024, the World Bank approved this initiative following an agreement in principle by the Official Creditors’ Committee under the G20 Common Framework regarding key parameters for Ghana’s proposed debt restructuring.

    This agreement, aligned with the Joint World Bank-International Monetary Fund Debt Sustainability Framework, marks a significant step toward restoring Ghana’s debt sustainability.

  • A dollar goes for GHS13.65 at forex, BoG interbank rates GHS12.86

    A dollar goes for GHS13.65 at forex, BoG interbank rates GHS12.86


    Today’s Interbank forex rates, as reported by the Bank of Ghana on March 27, 2024, indicate that the Ghana Cedi is valued against the US dollar at a buying rate of 12.8558 and a selling rate of 12.8686.

    In Accra’s Forex bureaus, the dollar fetches a buying price of 13.25 and a selling price of 13.65.

    Against the Pound Sterling, the Cedi is valued at a buying rate of 16.2343 and a selling rate of 16.2518.

    In Accra’s Forex bureaus, the pound sterling is exchanged at a buying rate of 16.50 and a selling rate of 17.10.

    The Euro is traded at a buying rate of 13.9326 and a selling rate of 13.9452.

    In Accra’s Forex bureaus, the Euro is bought at 14.00 and sold at 14.60.

    The South African Rand is valued at a buying rate of 0.6770 and a selling rate of 0.6773.

    In Accra’s Forex bureaus, the South African Rand is bought at 0.40 and sold at 1.10.

    The Nigerian Naira is exchanged at a buying rate of 108.3018 and a selling rate of 108.6128.

    In Accra’s Forex bureaus, the Nigerian Naira is bought at 8.50 Naira for every 1 Cedi and sold at 13.50.

    For the CFA Franc, the buying rate is 47.0382 and the selling rate is 47.0807.

    In Accra’s Forex bureaus, the CFA Franc is bought at 21.00 CFA for every 1 Cedi and sold at 23.00 CFA for every 1 Cedi.

    Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

    Note that these rates may differ at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

  • Ghana’s gross international reserves surge by 9.9% to $4.06bn in 2 months

    Ghana’s gross international reserves surge by 9.9% to $4.06bn in 2 months

    In the first two months of 2024, Ghana’s Gross International Reserves (GIR) excluding Encumbered Assets and Petroleum Fund increased by 9.99% to $4.02 billion in February 2024, equivalent to 1.8 months of import cover.

    Gross international reserves are defined as the US dollar value of holdings of foreign exchange, special drawing rights, reserve position in the IMF, and gold at the end of a given period.

    The GIR stood at $3.66 billion in December 2023, representing 1.7 months of import cover. It rose to $4.17 billion in January 2024 but declined slightly to $4.02 billion in February 2024.

    The Bank of Ghana’s March 2024 Summary of Economic and Financial Data shows that the country’s reserves have been growing consistently, albeit slightly, since August 2023.

    However, the country’s trade surplus was $392.8 million in February 2024, about 0.5% of Gross Domestic Product (GDP), lower than the $862.5 million (1.1% of GDP) recorded during the same period in 2023.

    Total exports in February 2024 were estimated at $2.86 billion, while total imports stood at $2.47 billion. Gold remained the dominant export, with an export value of $1.26 billion in February 2024, benefiting from both volume and price increases.

    Crude oil exports were the second-highest, bringing in $619.8 million as of February 2024, compared to $551.3 million in February 2023. Cocoa export proceeds in February 2024 stood at $508.4 million, lower than the $711.5 million a year ago, due to lower volumes and prices.

    Other exports, including non-traditional exports, marginally decreased to an estimated value of $479.5 million in February 2024, compared to $480.0 million a year ago.

  • Over 11 banks financially stable after converting assets to capital – BoG

    Over 11 banks financially stable after converting assets to capital – BoG

    More than half of Ghana’s 23 banks have successfully met the required capitalization, according to Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG).

    He stated that most of the remaining banks have achieved over two-thirds of the required recapitalization within a three-year period.

    Dr. Addison announced this during a press briefing, highlighting that despite elevated credit risks, the banking sector has remained stable. He noted improvements in the sector’s liquidity and profitability positions.

    Key financial soundness indicators showed mixed trends. The Capital Adequacy Ratio, adjusted for reliefs, was 13.6% in February 2024, exceeding the regulatory minimum of 13.0%, compared to 12.6% in February 2023. Liquidity and profitability ratios also improved from the previous year.

    However, the non-performing loan (NPL) ratio increased to 24.6%, attributed to downgrades of several large exposures. Excluding the loss category, NPLs remained in single digits at 9.8%.

    The Bank of Ghana anticipates that completing the recapitalization process early will enhance the banking sector’s resilience and enable it to better support the recovery of the real sector.

    In a related development, credit to the private sector by banks remained low. Private sector credit growth was 5.1% in February 2024, compared to 29.5% in February 2023.

    Conversely, banks’ investments in Government of Ghana and Bank of Ghana instruments increased significantly, reaching GH₵53.6 billion, a 67.6% year-on-year increase, compared to 36.9% for the same period in 2023.

  • Accept 1 and 5 pesewa coins, stop rejecting them – BoG to public

    Accept 1 and 5 pesewa coins, stop rejecting them – BoG to public

    The Bank of Ghana (BoG) has issued a caution to Ghanaians against rejecting the one and five pesewas coins, emphasizing that they are legal tender intended for transactions.

    Head of Currency Management at the Central Bank, Dominic Owusu, affirmed that the coins are still being issued and are expected to be used in the country for transactions.

    He also stated that the Bank will continue to monitor its currency in circulation to support the economy.

    Mr Owusu made these remarks during a media engagement as part of the Ghana Month Celebration.

    “If we mint a coin and issue it for circulation, it takes about 15 years or so before we withdraw it from the system. They fall within the change class and we want to encourage the public to use this coin because it supports the economy”.

    “The coins play a key role in the economy because if you want to buy some worth one cedi you can buy with 200 cedis so we have different classes which are the change, transaction, and the store of value class”, he stated.

    There are several reports of a section of the public refusing to use the one pesewas and the five pesewas coin for transactions.

    Meanwhile, the bank said those practices were unpatriotic, as they amounted to disrespect for the national currency.

  • Ghana poised to lead Fintech Investment – BoG

    Ghana poised to lead Fintech Investment – BoG

    The Head of FinTech and Innovation at the Bank of Ghana (BoG), Kwame Oppong, has anticipates that the upcoming 3i Summit will elevate Ghana as a prime hub for fintech investments across Africa.

    Speaking at the Ghana Fintech and Payments Association Awards event in Accra, Oppong emphasized the potential of the 3i Summit to draw significant investment to Ghana, thanks to the anticipated presence of global fintech leaders.

    The Fintech Awards event not only acknowledges the accomplishments of outstanding fintech and payments companies but also serves as a platform for industry stakeholders to convene and strategize on enhancing the sector’s growth.

    With Ghana emerging as a favorable landscape for fintech, boasting over 70 such enterprises, Oppong believes the 3i Summit will serve as a catalyst for policy discussions, entrepreneurial ventures, and networking opportunities within the industry.

    Oppong called upon banks and fintech firms to collaborate in organizing and supporting the summit, stressing that collective participation is key to its success.

    Highlighting the pivotal role of fintech companies in advancing Ghana’s financial inclusivity, Oppong noted a significant rise in the country’s financial inclusion index from 58% in 2017 to 68% in 2021.

    The 3i Africa Summit, a collaborative effort between the Bank of Ghana, the Monetary Authority of Singapore, Development Bank Ghana, and Elevandi, aims to drive innovation, investment, and impact in Africa’s fintech and financial services sectors.

    Scheduled for May 13 to May 15, 2024, at the Accra International Conference Centre, the summit promises to be a pivotal event for the fintech ecosystem in Africa.

    Nana Hemaa Ama Anim, Vice President for Women in Fintech, hailed the awards as a source of inspiration, fostering creativity, partnerships, and progress not only within fintech but across the entire financial sector.

    “I therefore extend an invitation to all banks and fintech companies to fully participate in diverse ways to organise this summit. Together, we can make the summit a success for all of us in the industry. The summit is for all of us to participate, so let us come on board and work together,” he said.

    She said the, “Women in FinTech” programme aimed at closing the gender disparity, empowering women, and supporting the creation of fintech companies led by women.

  • Minority goes after BoG for ‘illegally’ writing off GH¢48bn state debt

    Minority goes after BoG for ‘illegally’ writing off GH¢48bn state debt

    The Minority in Parliament has accused the management of the Bank of Ghana (BoG) of engaging in illegal activities related to the write-off of approximately GH¢48 billion in government debt.

    The caucus alleges that these actions have resulted in the insolvency of the central bank.

    During the final debate on the State of the Nation Address (SONA) on Monday, March 11, Dr. Cassiel Ato Forson, the Minority Leader, stressed the importance of holding the BoG’s management accountable.

    “The Bank of Ghana is now bankrupt and exists merely in name. In 2022, the Central Bank recorded a colossal loss of over GHȼ60.8 billion and a negative equity of over GHȼ55 billion.

    “The Governor of the Bank of Ghana and his two deputies illegally and excessively printed money to finance the government’s over-bloated expenditures. Mr Speaker, the Governor of the Bank of Ghana and his two deputies, without recourse to Parliament, wrote off about GHȼ48.4 billion of government debt.”

    The Minority leader urged Ghanaians not to overlook it, and called for accountability from the leadership of the Bank of Ghana.

    “These are the cardinal sins for which the Governor and his two deputies must be held accountable, however long it takes,” he asserted.

    In 2023, banks in Ghana recorded a significant improvement in their bad debt situation, with GH¢4.33 billion being written off, marking a substantial 79.2% reduction compared to the previous year.

    This bad debt, categorized as loan losses, depreciation, and other factors, contributed to a total estimated bad debt of GH¢20.8 billion for the year.

    The Bank of Ghana reports that banks reported lower impairments on financial assets in 2023. Total provisions and impairments decreased by 79.2% in December 2023, following a sharp increase in December 2022 due to significant impairments on restructured bonds.

  • BoG forecasts inflation decline to 13-17% by 2024, targeting 6-10% by 2025

    BoG forecasts inflation decline to 13-17% by 2024, targeting 6-10% by 2025

    The Bank of Ghana foresees a further decrease in headline inflation, expected to fall within the range of 13-17% by the end of 2024, gradually returning to the medium-term target range of 6-10% by 2025, unless unforeseen disruptions occur.

    As outlined in the January 2024 Monetary Policy Report, the ongoing disinflation process is anticipated to persist, with clear indications that the existing macroeconomic framework, backed by the International Monetary Fund-Economic Credit Facility program, is yielding positive outcomes.

    While the report highlights potential risks to the inflation outlook, particularly related to geopolitical tensions and their potential impact on commodities markets, particularly international crude oil prices, the Bank of Ghana emphasizes that all indicators of core inflation are declining, signaling a sustained alleviation of underlying inflationary pressures.

    Improved foreign exchange inflows from IMF-ECF disbursements, the cocoa syndicated loan, and expected funding from the World Bank are expected to bolster forex inflows.

    Furthermore, initiatives such as the Gold for Reserves program, repatriation of foreign exchange from mining and oil companies, and reduced debt service payments are projected to bolster reserve accumulation and promote exchange rate stability, further aiding the disinflation process.

  • Mahama Ayariga drags BoG Boss to OSP again

    Mahama Ayariga drags BoG Boss to OSP again

    Member of Parliament for Bawku Central, Mahama Ayariga, has lodged another complaint with the Office of the Special Prosecutor (OSP) regarding the ongoing construction of the new Bank of Ghana (BoG) Complex.

    In his initial complaint, Ayariga alleged corruption involving the Bank’s governor, deputy governors, the board of directors, and the project contractor, Goldkey Properties Ltd.

    He also raised concerns about the significant escalation in the project’s cost from USD 121,807,517.94 to USD 222,799,760.55, despite minimal changes in the project’s scope.

    In his earlier complaint, Ayariga emphasised the OSP’s mandate to investigate suspected cases of corruption and urged transparency in the use of public funds.

    In a subsequent letter to the OSP dated Monday, March 11, Ayariga sought an update on the progress of the investigation.

    “This is to follow up on your investigation of the complaint of suspected procurement breaches relating to the new headquarters building of the Bank of Ghana at Ridge, Accra.

    “You will recall that in October 2023, I made a formal complaint to your office and requested that you investigate what I believed to be a case of corruption in the procurement of the new headquarters building of the Bank of Ghana at Ridge in Accra.

    The suspects, in this case, included the governor and the deputy governors of the Bank of Ghana, namely: (1) Dr Ernest Kwamina Addison (Governor), (2) Maxwell Opoku-Afari (First Deputy Governor), and (3) Elsie Ado Awadzi (Second Deputy Governor),” an excerpt of the statement said.

  • Banks’ share in securities, equity, other investments surged by 4.4% in 2023 – BoG

    Banks’ share in securities, equity, other investments surged by 4.4% in 2023 – BoG

    According to the Bank of Ghana’s January 2024 Banking Sector Development Report, the composition of banks’ investments, including bills, securities, and equity, as a share of total assets increased to 36.4% in 2023 from 32.0% in 2022.

    Cash and bank balances were the second-largest component of total assets, with their share improving from 29.1% to 30.7% over the same period.

    However, the proportion of net advances in total assets declined to 23.8% from 28.2%, while the share of non-earning assets reduced from 10.6% to 9.1%. The Central Bank noted that the banking industry’s balance sheet in December 2023 reflected a preference for less risky assets.

    On the liability side, the share of deposits in banks’ liabilities and shareholders’ funds increased to 78.0% in December 2023, from 75.5% in the prior year. The decline in borrowings translated into a decreased share of 5.5% in December 2023, compared to 8.9% a year earlier.

    Following the strong growth in profits after tax, the proportion of shareholders’ funds in banks’ total funding improved to 10.6% from 8.7%. The share of other liabilities, however, declined from 7.0% in December 2022 to 5.9% in December 2023.

    Interest income remained the largest component of banks’ income streams in December 2023, accounting for 76.8% of banks’ income compared to 75.7% in December 2022. The share of banks’ income from fees and commissions declined to 10.8% from 11.3% in 2022, while the proportion of other income in total income was lower at 12.4% in December 2023 compared to 13.0% in December 2022.

  • You signed e-levy bill into law even when it was still in court, what is so strange about the gay bill? – Prof. Gatsi to Akufo Addo

    You signed e-levy bill into law even when it was still in court, what is so strange about the gay bill? – Prof. Gatsi to Akufo Addo

    Dean of the University of Cape Coast Business School, Professor John Gatsi, has voiced criticism against President Akufo-Addo’s decision to postpone assenting to the anti-LGBTQ+ bill until after a Supreme Court ruling on the matter.

    Initially, President Akufo-Addo remarked on the passage of the Proper Human Sexual Rights and Ghanaian Family Values Bill by Parliament, highlighting that Ghanaians await the Supreme Court’s decision before any action is taken.

    However, Gatsi has criticised this stance.

    But Prof. Gatsi, speaking on TV3’s Ghana Tonight programme on March 4, questioned the basis of the President’s assertion because the bill is yet to become law, adding, “When E-levy [Electronic Transaction Service Levy] was sent to court, the President still went ahead to sign the E-levy bill into law.”.

    “What is so significant or strange about this bill that the bill has not even matured into law and some people are seeking some explanation to be provided by the Supreme Court about this bill?” he quizzed.

    According to Prof. Gatsi, the country is not yet at the point of Supreme Court interpretation, stating, “We don’t have a law so to speak, because technically we have not completed the process.”

    He further asserted that all the events unfolding after the bill’s passage aim to prevent it from receiving presidential assent and becoming law.

    Gatsi emphasised the significant amount of lobbying activity being conducted to oppose the signing of the anti-LGBTQ+ bill.

    “It sounds like there is a heavy dose of lobbying activities going on [in] these last minutes of the process. We knew that the constituents of the world that are not happy with the stand of Ghana on LGBTQ were very clear. All attempts were made to stop the process in parliament that didn’t happen,” he said, adding that the international community, having seen the signs of a unanimous decision to pass the bill in parliament, has occasioned “the upscale of lobbying activities across the board.”.

    “And now they are using our own finance ministry to blackmail Ghanaians to support the President not to sign the bill,” Prof. Gatsi added.

    Meanwhile, the Finance Ministry has urged President Akufo-Addo not to assent to the anti-LGBTQ+ bill. The Ministry, in a statement, emphasised that Ghana could lose over US$3.8 billion in World Bank financing should the bill be enacted into law.

    Some of the areas the Finance Ministry feared World Bank financing could be cut include the US$300 million First Ghana Resilient Recovery Development Policy Operation.

    Another US$300 million on-going negotiation for the Second Ghana Resilient Recovery Development Policy Operation, and another US$250 million for the Ghana Financial Stability Fund.

    Also, the finance ministry feared the disbursement of US$2.1 billion for ongoing projects and another US$900 million worth of projects would cease when the bill becomes law.

  • Such a joke! Togbe Afede XIV blasts BoG’s 1% policy rate cut

    Recent reduction of the monetary policy rate by 1 percent [from 30% to 29%] by the Bank of Ghana (BoG) has been criticised by Togbe Afede XIV, the Agbogbomefia of Asogli State, who described it as a joke.

    The Central Bank’s Monetary Policy Committee made this decision during its first meeting of the year on January 29, 2024, following a review of economic developments in the country.

    According to Dr. Ernest Addison, the Governor of the Bank of Ghana, the decision was influenced by a decline in core inflation figures and various factors supporting the disinflation process.

    However, Togbe Afede XIV strongly opposes the Central Bank’s decision, questioning the actual impact of the 1 percent rate reduction on lending rates, inflation, exchange rates, or overall economic growth.

    In a write-up sighted by GhanaWeb Business, the economist wrote, “I wonder whether they have determined the correlation between interest rates, inflation, and exchange rates in our country.”

    “The hesitant 1% rate cut to 29% is particularly surprising given their expectation that headline inflation would “ease to 15%±2% by the end of 2024 and gradually trend back to within the medium-term target range of 8%±2% by 2025.”

    I do not see the relationship between the expected or target 15%±2% inflation and the high 29% monetary policy rate. It gives the impression that our top economists do not believe in themselves or their own forecasts,” he explained.

    Togbe Afede XIV also voiced concerns regarding the credibility of Central Bank officials and economic managers, suggesting that their recent assertion of “emerging recovery” contradicts previous statements indicating the economy had “turned the corner.”

    While acknowledging the complexity of interactions among macroeconomic variables, Togbe Afede XIV emphasised that the Central Bank’s policy rate and open market operations should ideally influence the inflation rate.

    “But BOG officials still have a fixation on headline or year-on-year inflation, and so they cannot depart from their reactionary monetary policy approach, which responds to what has transpired, that is, past one-year price changes, instead of their expectation of inflation (15%±2% this year).

    So, the 1% reduction in the policy rate appears to be a reaction to the 3.2% fall in headline inflation in December to 23.2%, from 26.4% % in November,” Togbe Afede XIV emphasised.

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  • BoG adjusts customer wallet limits for MoMo transactions starting March 1

    Bank of Ghana (BoG) has announced revisions to the balance and transaction limits of mobile money wallets, effective March 1, 2024, in response to the growing trends in transactional activities and evolving customer demands.

    This decision follows a surge in mobile money transactions, as highlighted in the 2023 Fintech Sector report released by the Bank, according to the Ghana Chamber of Telecommunications.

    The report disclosed a significant 79 percent increase in the total value of mobile money transactions, reaching GH¢1.9 trillion compared to figures recorded in 2022.

    Moreover, the total value of mobile accounts (funds) held with commercial banks witnessed a 40% increase, reaching GH¢18.3 billion.

    Under the newly approved guidelines, the transaction limits for various customer accounts have been adjusted.

    Minimum Account, Medium Account and Enhanced Account:

    Previous Limits: GH¢2,000, GH¢10,000, and GH¢15,000
    Revised Limits: GH¢3,000, GH¢15,000, and GH¢25,000, respectively

    Minimum KYC Account:

    Previous Limit: GH¢3,000
    Revised Limit: GH¢5,000

    Medium KYC Account:

    Previous Limit: GH¢25,000
    Revised Limit: GH¢40,000

    Enhanced KYC Account:

    Previous Limit: GH¢50,000
    Revised Limit: GH¢75,000


    Additionally, the Bank of Ghana has raised the monthly transaction limit for Minimum KYC Accounts from GH¢6,000 to GH¢10,000. Meanwhile, there will be no changes to the transaction limits for Medium and Enhanced accounts, which previously had no set limits on monthly transaction values.

    As an advocacy institution, the Ghana Chamber of Telecommunication urges the public to seek clarification at any of their members’ customer service centers nationwide.

  • BoG to make changes to MoMo wallet limits from March 1

    In response to the surge in mobile money transactions and evolving customer needs, the Bank of Ghana (BoG) has announced adjustments to the balance and transaction limits of mobile money wallets, effective March 1, 2024.

    The decision follows the findings of the 2023 Fintech Sector report, revealing a significant 79 percent increase in the total value of Mobile Money transactions, reaching GH¢1.9 trillion compared to 2022 figures.

    Mobile Accounts (Funds) held with commercial banks also saw a 40% increase, reaching GH¢18.3 billion.

    The revised guidelines include adjustments to transaction limits for different customer accounts:

    • Minimum Account, Medium Account, and Enhanced Account:
      • Previous Limits: GH¢2,000, GH¢10,000, and GH¢15,000
      • Revised Limits: GH¢3,000, GH¢15,000, and GH¢25,000 respectively
    • Minimum Know Your Customer (KYC) Account:
      • Previous Limit: GH¢3,000
      • Revised Limit: GH¢5,000
    • Medium Know Your Customer (KYC) Account:
      • Previous Limit: GH¢25,000
      • Revised Limit: GH¢40,000
    • Enhanced Know Your Customer (KYC) Account:
      • Previous Limit: GH¢50,000
      • Revised Limit: GH¢75,000

    Additionally, the monthly transaction limit for a Minimum KYC Account has increased from GH¢6,000 to GH¢10,000. Medium and Enhanced accounts, which had no previous limits on the value of monthly transactions, remain unchanged.

    The Ghana Chamber of Telecommunications, as an advocacy institution, encourages the public to seek clarification at any of their members’ customer service centers across the country.

  • BoG waiting for another disaster?

    BoG waiting for another disaster?

    In the intricate realm of global affairs, Ghana stands as a paradox, a nation caught in the relentless grip of reactive governance. 

    Its leaders, entrusted with the sacred duty of steering the ship of state, seem to have adopted a peculiar philosophy – a philosophy of waiting for storm clouds to gather before unfurling the sails of action. 

    As the world hurtles forward, Ghana remains tethered to a tradition of procrastination, only mustering the will to address long-standing issues when they metamorphose into full-blown crises. 

    This habitual reactivity not only jeopardizes the nation’s well-being but also leaves the world watching in incredulous fascination at a leadership seemingly trapped in the clutches of inertia.

    In the arena of global geopolitics, the adage “prevention is better than cure” finds its resonance in the elusive art of proactivity. 

    Yet, within the borders of Ghana, this fundamental principle appears to be but a distant whisper drowned out by the cacophony of crises. 

    The leadership and institutions of this nation have mastered the art of reactive governance, a practice that transforms issues into ticking time bombs, detonating only when the urgency of disaster demands their attention. 

    This alarming pattern not only underscores a lack of foresight but also raises profound questions about the capacity and commitment of those at the helm.

    You may recall that the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, confirmed that most banks in the country have complied with the directive to purchase ‘bulletproof’ bullion vans for transporting cash. 

    This came after the Central Bank directed all banks to acquire ‘bulletproof’ bullion vehicles to transit cash by July 1, 2023. 

    Before then there had been a series of robbery attacks on vans transporting cash, leading to the death of a police escort. 

    According to the Governor, “Ideally, there should be police escorts who should not be in these vans. But rather following these vehicles.”

    Speaking at the 113th Monetary Policy Committee (MPC) press conference in Accra on Monday, July 24, 2023, Dr. Addison said the banks had complied with the directive. He said, “I have seen a lot of clearances from the Ministry of Interior to aid these imports and even those that have already brought in these cars.”

    A Call For Proactive Measures

    Despite the assurances from the Governor of the Bank of Ghana that banks have complied with the directive to purchase bullion vans, recent observations paint a different picture. 

    Fast forward to today, and it’s evident that some banks continue to utilize refitted pickup trucks for cash transportation. 

    Even if these pickups have been upgraded with armor plating, they still lack the structural integrity and specialized design inherent to standard bullion vans.

    Standard bullion vans are purpose-built vehicles engineered with a suite of features specifically tailored for secure cash transit. 

    These features include reinforced armor plating, robust locking systems, and compartments designed to deter and withstand attempted robberies. 

    Moreover, bullion vans often come equipped with advanced security technologies such as GPS tracking, panic buttons, and secure communication systems, further enhancing their ability to prevent and respond to security threats effectively.

    In contrast, refitted pickup trucks, while may be armored, are not structurally designed to fulfill the demanding requirements of cash transit. 

    Their conversions typically lack the specialized security features found in dedicated bullion vans, leaving them vulnerable to breaches and compromising the safety of both personnel and assets.

    Given the critical role of secure cash transportation in maintaining financial stability and public safety, it is imperative that authorities take proactive measures to address this issue. 

    The continued use of inadequately equipped vehicles for cash transit poses significant risks and undermines efforts to combat robbery attacks effectively.

    Therefore, authorities must enforce strict compliance with regulations mandating the use of standard bullion vans for cash transportation by financial institutions. 

    Additionally, there should be regular audits and inspections to ensure adherence to safety standards and protocols. 

    Investing in the proper infrastructure and equipment now will not only mitigate the risk of future security breaches but also safeguard the integrity of Ghana’s financial system and protect the welfare of its citizens. 

    They should not wait for another tragedy before they act.

    Source: Vaultz News

    DISCLAIMER: TIGPost.co will not be liable for any inaccuracies contained in this article. The views expressed in the article are solely those of the author’s, and do not reflect those of The Independent Ghana.

  • BoG reports 54% drop in secured loans to GHS5.9bn

    BoG reports 54% drop in secured loans to GHS5.9bn


    In the fourth quarter of 2023, banks and Specialised Deposit-Taking Institutions (SDIs) extended secured loans with a combined value of GH¢5.9 billion, according to the Bank of Ghana (BoG)

    This represents a significant decrease of 54.9% compared to the GH¢13.2 billion recorded in the same period in 2022.

    Breaking down the figures from the 4th Quarter Collateral Registry Report, it is revealed that banks contributed GH¢4.5 billion to the total secured loans in Q4 2023, marking a notable decline of 63.0% from the GH¢12.3 billion reported in Q4 2022.

    This decline signals an overall deceleration in credit growth for the year, indicating a strategic portfolio reallocation by banks.

    Conversely, SDIs experienced an uptick in secured loans, recording a total of GH¢1.4 billion in Q4 2023.

    This reflects a significant increase of 53.0% from the GH¢918.7 million reported in the same period in 2022.

    Examining the distribution of secured loans, banks maintained the largest share in Q4 2023, accounting for 76.3% of the total value, down from 93.0% in Q4 2022.

    Savings and Loans Companies saw an increased share, rising to 13.3% in Q4 2023 from 4.2% in Q4 2022. Rural and Community Banks followed with a percentage share of 6.9%, up from 1.9% in Q4 2022. Microfinance Companies also experienced a rise in share, reaching 1.7% in Q4 2023 from 0.3% in Q4 2022. Additionally, Finance Houses saw a slight increase, from 0.1% in Q4 2022 to 0.5% in Q4 2023.

  • Dr. Kwakye blasts BoG, Finance Minister and Bawumia for disregarding GH¢60.81 billion loss in 2022

    Dr. Kwakye blasts BoG, Finance Minister and Bawumia for disregarding GH¢60.81 billion loss in 2022


    Senior Economist and Director of Research at the Institute of Economic Affairs (IEA) Dr. John Kwakye, has voiced criticism against the NPP flagbearer, Dr. Mahamudu Bawumia, for characterising the GH¢60.81 billion losses incurred by the Bank of Ghana in 2022 as merely “technical.”

    In a published write-up, Dr. Kwakye emphasised that these significant losses reported by the Central Bank during the specified financial year would inevitably lead to cuts imposed on various operations.

    Highlighting the tangible impacts, the IEA Director underscored how these losses are already affecting prevailing economic conditions in the country, including exchange rate stability and inflationary pressures.

    “Dr. Bawumia said BoG’s action was responsible and that it was temporary, as the bank had advanced money to the government in only two of the past seven years. The Minister of Finance had expressed similar sentiments in the past, which was not surprising because the government was the direct beneficiary of the monetary financing,” he said.

    Dr Kwakye continued, “However, as central bankers, we know that the most inflationary source of financing the budget is high-powered money coming directly from the central bank vault. It is not the fact that BoG advanced money to the government that is the issue, for the Bank’s Act provides for such advances up to 5% of the previous year’s revenue.

    It is the magnitude of the advance—over 50% of the previous year’s revenue—that is disturbing. It is no wonder inflation peaked at 54.1% in 2022—and depreciation ballooned to 54.2% in November 2022, before falling to 30.0% in December 2022. Meanwhile, as government debt to BoG was also discounted under the DDEP, the Bank made a whopping loss of GH¢61 billion and a record negative equity of GH¢54 billion in 2022.”


    He further contended that despite attempts by the Finance Minister and Central Bank Governor to downplay the extent of the losses, the country’s balance sheet suffered a severe blow.

    “Both the Minister and the Governor seem to have played down the loss as only a technical one. However, the fact is that the bank’s balance sheet has been severely impacted, and this would force it to cut back on some of its important operations so as to save costs,” Dr Kwakye said.

  • BoG’s GH¢60.81bn loss to trigger cuts in essential operations – John Kwakye

    BoG’s GH¢60.81bn loss to trigger cuts in essential operations – John Kwakye

    The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has voiced criticism against the New Patriotic Party flagbearer, Dr. Mahamudu Bawumia, for characterizing the GH¢60.81 billion losses reported by the Bank of Ghana in 2022 as merely technical losses.

    The economic researcher contends that these losses will necessitate reductions in crucial operations of the Bank as it seeks to manage costs.

    In an article titled “Dr. Bawumia’s Speech: Turning an Impossibility into the Possibility?”, Dr. Kwakye pointed out that one immediate consequence of these losses is the fluctuating inflationary figures witnessed in the country.

    Dr. Kwakye disputed Dr. Bawumia’s assertion that the Bank of Ghana’s actions were responsible and temporary.

    “Dr. Bawumia said BoG’s action was responsible and that it was temporary, as the Bank had advanced money to Government in only two of the past seven years. The Minister of Finance had expressed similar sentiments in the past, which was not surprising because Government was the direct beneficiary of the monetary financing.

    “However, as central bankers, we know that the most inflationary source of financing the budget is high-powered money coming directly from the central bank vault. It is not the fact that BoG advanced money to Government that is the issue, for the Bank’s Act provides for such advances up to 5% of the previous year’s revenue. It is the magnitude of the advance—over 50% of the previous year’s revenue—that is disturbing. It is no wonder inflation peaked at 54.1% in 2022—and depreciation ballooned to 54.2% in November 2022, before falling bank to 30.0% in December 2022. Meanwhile, as Government debt to BoG was also discounted under the DDEP, the Bank made a whopping loss of GHS61 billion and a record negative equity of GHS54 billion in 2022.”

    “Both the Minister and the Governor seem to have played down the loss as only a technical loss. However, the fact is that the Bank’s balance sheet has been severely impacted, and this would force it to cut back on some of its important operations so as to save costs.”

    He highlighted that while it is not unusual for the Bank to advance money to the government, the magnitude of the advance—exceeding 50% of the previous year’s revenue—is concerning.

    This, according to Dr. Kwakye, contributed to the spike in inflation and depreciation in 2022.

    Despite attempts by the Finance Minister, Ken Ofor-Atta, and the Bank of Ghana to downplay the losses as technical, Dr. Kwakye emphasized that the Bank’s balance sheet has been significantly impacted. He argued that this impact would compel the Bank to scale back on crucial operations in order to cut costs.

  • Government makes GH¢6.84 billion from treasury bills auction, highest so far this year

    Government makes GH¢6.84 billion from treasury bills auction, highest so far this year


    Government successfully secured GH¢6.84 billion in treasury bill sales, surpassing its target of GH¢4.587 billion.

    This comes after the Bank of Ghana’s (BoG) weekly Treasury Bill Auction, conducted on February 9, 2024.

    This resulted in an oversubscription of GH¢2.259 billion. Notably, the previous week’s auction yielded a total amount of GH¢4.527 billion.

    Meanwhile, interest rates experienced a slight decrease, ranging from 27.99% to 30.99%.

    The latest auction results from the Bank of Ghana indicate that interest rates for the 91-day and 182-day bills currently stand at 27.99% and 30.43%, respectively. For the 364-day bill, interest rates are reported at 30.99%.

    With inflation currently at 23.2%, there are positive signs for investors.

    All bids tendered in this week’s auction were accepted, with GH¢2.931 billion accepted for the 91-day bill, GH¢1.627 billion for the 182-day bill, and GH¢2.287 million for the 364-day bills.

    Looking ahead, the government has set its next auction target at GH¢4.865 billion.

  • Lies, ignore them – BoG on purported new 500 Cedis note in circulation

    Lies, ignore them – BoG on purported new 500 Cedis note in circulation

    Bank of Ghana (BoG) has strongly denied recent claims circulating on various social media platforms regarding the introduction of new GH₵500 banknotes.

    These claims gained momentum following a video circulating on TikTok suggesting that President Nana Akufo-Addo and Vice President Dr. Mahamudu Bawumia publicly unveiled GH₵500 currency notes and coins during a televised event on Metro TV.

    The video depicted the political leaders showcasing what appeared to be a GH₵500 note featuring the image of Ghana’s first president, Kwame Nkrumah, on one side and the faces of subsequent presidents on the reverse.

    However, the Bank of Ghana has refuted these claims, emphasising that the highest denomination currently in circulation remains the GH₵200 note.

    Esi Hammond, the Head of Communications at the Bank of Ghana, has firmly dismissed these allegations as false and urged the public to ignore such misinformation.

    She pointed out that fake news regarding currency denominations is not uncommon and reiterated that the bank would officially communicate any plans for introducing new denominations.

    The purported GH₵500 note featured a combination of past and present presidents, including John Mahama, John Atta Mills, John Kufuor, and Jerry Rawlings, who assumed presidential office after 1992.

    This inconsistency clearly indicates the inauthenticity of the alleged GH₵500 notes.

    Financial experts have urged the public to remain vigilant when encountering news about currency, particularly given Ghana’s current economic difficulties. They stress the importance of verifying information from reliable sources before accepting or spreading it.

    The Bank of Ghana reiterates that it is the only authorised issuer of currency in the nation, and any plans to introduce new denominations would be formally announced through official channels.

  • “Responsible” BoG put your interest first – Bawumia to public

    “Responsible” BoG put your interest first – Bawumia to public

    Vice President Dr. Mahamudu Bawumia has called upon Ghanaians to commend and acknowledge the efforts of the Bank of Ghana (BoG), which has faced unwarranted criticism while undertaking essential measures to stabilize the economy.

    Dr. Bawumia highlighted the pivotal role played by the central bank in extending crucial financial support to the government during a critical period, preventing the economy from veering towards collapse.

    “What the Bank of Ghana did was very responsible, in putting the interest of the good citizens of Ghana first”, he disclosed when addressing the nation.

    The Vice President further emphasized that available data indicates that the financial assistance extended to the government by the Bank of Ghana was of a temporary nature.

    Dr. Bawumia underscored that over the past seven years, the Bank of Ghana has not provided any financial support to the government in five of those years, namely 2017, 2018, 2019, 2021, and 2023.

    The Vice President further emphasized that available data indicates that the financial assistance extended to the government by the Bank of Ghana was of a temporary nature.

    Dr. Bawumia underscored that over the past seven years, the Bank of Ghana has not provided any financial support to the government in five of those years, namely 2017, 2018, 2019, 2021, and 2023.

    The Bank of Ghana has consistently defended its decision to provide financial support to the government’s budget following the onset of the Covid-19 pandemic, arguing that failure to do so would have had dire consequences for the economy.

    Prior to the outbreak of Covid-19, the Central Bank adhered to a policy of refraining from financing the budget between 2015 and 2020.

    However, this approach changed in the aftermath of the pandemic when the government faced challenges in generating sufficient revenue.

    Speaking at the University of Ghana’s 75th Anniversary Public Lecture on “Ghana’s Economy: The Need for Paradigm Shift,” Dr. Philip Abradu-Otoo, Director of Research at the Bank of Ghana, explained that the central bank had no alternative but to intervene to prevent the economy from collapsing.

    “So the Central Bank’s point of view, we realised we needed an economy to protect. So there were choices that had to be made, should we allow the economy to collapse or we should stick strictly to issues of fiscal dominance and then who picks up the pieces after the economy has collapsed”.

    The Bank of Ghana’s Annual Report and Financial Statements for the year 2022 have revealed a significant loss of ¢60.8 billion. This substantial loss stands in stark contrast to the ¢1.2 billion profit recorded by the Central Bank in the previous year, 2021.

    The report attributes this substantial loss to a decline in the Group’s net worth position, primarily due to the impact of the Domestic Debt Exchange Programme (DDEP) and impairment of certain assets.

    Additionally, the report indicates that the total liabilities and subsidiaries of the Bank of Ghana exceeded its total assets by ¢54.52 billion during the reporting period.

    This, among many other reasons were cited by the Minority in Parliament for the removal of BoG Governor, Dr Ernest Addison and his deputies. The Minority’s initiative is yet to see the light of day.

    In contrast, in 2021, the Central Bank recorded a surplus of ¢5.72 billion, highlighting a significant shift in financial performance within a year.

  • Ghana’s oil revenue declines to $521M – BoG

    Ghana’s oil revenue declines to $521M – BoG

    The latest semi-annual report of the Ghana Petroleum Holding Fund (PHF), disclosed by the Bank of Ghana, indicates that the country received over $521 million in the second half of 2023.

    However, this amount marks a decline compared to the $696.82 million recorded in petroleum receipts during the same period in 2022.

    The report, released in accordance with the Petroleum Revenue Management Act, 2011 (Act 815), provides details on Ghana’s crude oil liftings and the allocation to the Ghana Petroleum Funds. Total petroleum revenue receipts include proceeds from oil liftings, Corporate Tax, Surface Rental, and interest on the Petroleum Fund account.

    Between May and October 2023, Ghana secured $319 million from crude oil liftings, with an additional $198 million from corporate tax related to crude oil liftings by Kosmos Energy, Tullow Oil, and Petro SA.

    Interest from the Petroleum Holding Funds amounted to $3.3 million, and income from surface rental was estimated at $112,082.

    Ghana’s Petroleum Funds Investments generated $1.23 billion during the period, with the breakdown revealing that the Ghana Stabilization Fund received $159 million, and the Ghana Heritage Fund received $68 billion.

    Complying with the law, the Bank of Ghana manages the receipt and disbursement of petroleum revenue, allocating not more than 70 percent of the benchmark revenue to the Annual Budget Funding Amount and not less than 30 percent to the Ghana Petroleum Funds.

    Among the transferable funds into the Petroleum Funds, the Ghana Heritage Fund receives a minimum of 30 percent, with the remaining portion transferred into the Ghana Stabilization Fund.

  • BoG introduces user-friendly Beta version of Macroeconomic Database Portal

    BoG introduces user-friendly Beta version of Macroeconomic Database Portal


    The Bank of Ghana (BoG) has unveiled the Beta Version of its Database Portal, a crucial step towards creating a unified platform for extracting and visualizing macroeconomic data.

    This initiative aligns with international best practices and reflects the Bank’s dedication to enhancing transparency within its inflation targeting framework for monetary policy.

    The portal serves the dual purpose of meeting data requests from the public and supporting research endeavors.

    Organized into five primary Economic Sectors—External, Financial, Fiscal, Monetary, Real, and Survey-Based Indicators—the data encompasses 255 monthly and 86 quarterly time series sourced from the BoG and key stakeholder institutions.

    Regular updates and revisions, following the published Data Release Calendar on the portal, ensure the information’s accuracy and relevance. For access to data on the Portal, visit the official website: https://app.datawarehousepro.com/go/bog/