The Bank of Ghana’s interbank exchange rates, has shown that the Ghana Cedi is now trading against the dollar at a purchasing price of 10.9970 and a selling price of 11.0080 as of today, July 18, 2023.
The exchange rate for buying and selling the dollar in Accra’s Forex bureau is 11.50 to 11.80.
Against the Pound Sterling, the Cedi is trading at a buying price of 14.3819 and a selling price of 14.3985.
At a forex bureau in Accra, the exchange rates for various currencies are as follows:
The pound sterling is being bought at a rate of 14.80 and sold at a rate of 15.50.
The Euro is trading at a buying price of 12.3556 and a selling price of 12.3677.
For the Euro at another forex bureau in Accra, it is being bought at a rate of 12.40 and sold at a rate of 13.00.
The South African Rand is currently trading at a buying price of 0.6103 and a selling price of 0.6108.
For the South African Rand at a different forex bureau in Accra, it is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 70.4204 and a selling price of 71.2756.
For the Nigerian Naira at another forex bureau in Accra, it is being bought at a rate of 13.00 Naira for every 1 Cedi and sold at a rate of 19.00.
The CFA Franc is currently trading at a buying price of 53.0379 and a selling price of 53.0899.
For the CFA Franc at a different forex bureau in Accra, it is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Please note that these rates may vary at different forex bureaus and are subject to change.
The Bank of Ghana’s interbank exchange rates, has indicated that the Ghana Cedi is now trading against the dollar at a purchasing price of 10.9973 and a selling price of 11.0083 as of today, July 14, 2023.
The exchange rate for buying and selling the dollar in Accra at a Forex bureau is 11.50 to 11.90.
The Cedi is now trading at a purchasing price of 14.4131 and a selling price of 14.4286 versus the British pound.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.80 and sold at a rate of 15.50.Europe finally reaches a historic nature and climate agreement
The Euro is trading at a buying price of 12.3041 and a selling price of 12.3153.
At a forex bureau in Accra, the Eurois being bought at a rate of 12.40 and sold at a rate of 13.00.
The South African Rand is trading at a buying price of 0.6127 and a selling price of 0.6132.
At a forex bureau in Accra, the South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 70.6611 and a selling price of 70.7456.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 13.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 53.2636 and a selling price of 53.3121.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Bank of Ghana’s Interbank forex rates on July 13, 2023, indicates that the Ghana Cedi is currently being traded against the US Dollar at a buying price of 10.9961 and a selling price of 11.0071.
In Accra’s Forex bureau, the Dollar is being bought at a rate of 11.50 Cedis and sold at a rate of 11.90 Cedis.
Against the Pound Sterling, the Cedi is being traded at a buying price of 14.2839 and a selling price of 14.2993.
At a forex bureau in Accra, the Pound Sterling is being bought at a rate of 14.70 Cedis and sold at a rate of 15.40 Cedis.
The Euro is being traded at a buying price of 12.2263 and a selling price of 12.2373.
In Accra’s forex bureau, the Euro is being bought at a rate of 12.30 Cedis and sold at a rate of 12.90 Cedis.
The South African Rand is currently being traded at a buying price of 0.6045 and a selling price of 0.6050.
In Accra’s forex bureau, the South African Rand is being bought at a rate of 0.30 Cedis and sold at a rate of 0.90 Cedis.
The Nigerian Naira is being traded at a buying price of 71.0860 and a selling price of 71.1406.
In Accra’s forex bureau, the Nigerian Naira is being bought at a rate of 13.00 Naira for every 1 Cedi and sold at a rate of 19.00 Naira for every 1 Cedi.
For the CFA Franc, it is being traded at a buying price of 53.6031 and a selling price of 53.6513.
In Accra’s forex bureau, the CFA Franc is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
The Bank of Ghana’s interbank exchange rate shows that the Ghana Cedi is now trading against the dollar at a purchasing price of 10.9961 and a selling price of 11.0071 as of today, July 12, 2023.
The exchange rate for buying and selling the dollar in Accra at a Forex bureau is 11.50 to 11.90.
The Cedi is now trading with a purchasing price of 14.1795 and a selling price of 14.1948 versus the British pound.
Exchange rate for buying and selling the pound sterling in Accra is 14.70 and 15.40, respectively.
The purchasing and selling prices for the euro are respectively 12.0892 and 12.1002.
Euro is being bought at a rate of 12.30 and sold at a rate of 12.90 at a forex bureau in Accra.
The buying and selling prices for the South African Rand are 0.5925 and 0.5929 respectively.
South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90 at a forex bureau in Accra.
Trading prices for the Nigerian Naira are 68.9900 for purchases and 69.0672 for sales.
Nigerian Naira is being purchased and sold at a forex bureau in Accra at a cost of 13.00 and 19.00 respectively for every Cedi.
The purchase price and the selling price for the CFA are both 54.2104.
Buying CFA costs 17 CFA for every 1 Cedi, and selling CFA costs 21 CFA for every 1 Cedi at a forex bureau in Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
More than 420 individuals working for loan apps have been taken into police custody.
The Bank of Ghana (BOG), the Economic and Organized Crime Office (EOCO), and the Cyber Security Authority coordinated their efforts to carry out a well-planned operation that resulted in the capture of the suspects.
Authorities launched raids on numerous alleged owners of digital lending applications, often known as loan apps, in the Greater Accra Region as part of this coordinated operation.
The people behind these apps engage in a variety of illegal acts, including cyberbullying, extortion, the unauthorized use of data and privacy, and, in the most extreme situations, issuing death threats.
In a statement issued by the authority, it was stated, “The three collaborating institutions carried out a targeted operation in the early hours of Monday, July 10, 2023, as part of a joint effort by the Cybersecurity Committee, resulting in the arrest of more than 420 suspects.
The Ghana Cedi is currently trading against the dollar at a purchasing price of 10.9922 and a selling price of 11.0032, according to the Bank of Ghana’s interbank exchange rates for today, June 29, 2023.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.30 and sold at a rate of 11.80.
Against the Pound Sterling, the Cedi is trading at a buying price of 14.0162 and a selling price of 14.0313.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.50 and sold at a rate of 15.30.
The Euro is trading at a buying price of 12.0528 and a selling price of 12.0637.
At a forex bureau in Accra, Euro is being bought at a rate of 12.10 and sold at a rate of 12.80.
The South African Rand is trading at a buying price of 0.5941 and a selling price of 0.5946.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 68.7607 and a selling price of 68.8853.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 54.3744 and a selling price of 54.4236.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
The value of secured loans for which collateral was recorded by banks and SDIs was GH5.26 billion in the first quarter of 2023, according to the Bank of Ghana’s Collateral Registry Quarterly Report.
This is relative to the GH¢6.5 billion recorded in the first quarter of 2022 indicating a year-on-year decline of 19.23 percent.
Secured loans are loans that are taken against secured assets such as a home or a landed property.
Therefore, according to the first quarter report by the Bank of Ghana, banks accounted for GH¢4.3 billion of total securedloans.
This represented a 25.1 percent decrease from the GH¢5.8 billion recorded in Q1 of 2022 and a share of 82.4 percent out of the total secured loans.
On the other hand, the SDIs recorded a total amount of GH¢924.7 million secured loans representing a share of 17.6 percent and an increase of 29.8 percent from the GH¢ 712.6 million recorded for the same period in 2022.
Also, a total of 79,364 assets were registered as collateral by Banks and Specialised Deposit-Taking Institutions in the first quarter of 2023, an increase from the 76,142 assets registered in the first quarter of 2022.
The Ghana Cedi is currently trading against the dollar at a purchasing price of 10.9822 and a selling price of 10.9932, according to the Bank of Ghana’s interbank exchange rates for Wednesday, June 22, 2023.
At a Forex bureau in Accra, the dollar is being bought at a rate of 11.50 and sold at a rate of 11.90.
Against the Pound Sterling, the Cedi is trading at a buying price of 14.0045 and a selling price of 14.0196.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.50 and sold at a rate of 15.25.
The Euro is trading at a buying price of 12.0427 and a selling price of 12.0537.
At a forex bureau in Accra, the euro is being bought at a rate of 12.30 and sold at a rate of 12.80.
The South African Rand is trading at a buying price of 0.5622 and a selling price of 0.5628.
At a forex bureau in Accra, the South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 64.6942 and a selling price of 64.8170.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 54.4196 and a selling price of 54.4693.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
1. Once again, a very warm “Akwaaba” to the vibrant city of Accra, and let me extend my heartfelt congratulations to AFREXIMBANK on their remarkable 30-year commitment to Africa. No doubt, AFREXIMBANK’s dedication and efforts have impacted positively on the continent’s economic progress and l am thankful that Ghana is hosting this landmark 30th Annual Meeting, a testament to our country’s position as a hub of trade and commerce.
2. Ladies and Gentlemen, united by a shared vision for the prosperity of Africa, this event seeks to explore the immense potentials of digital technology to boost economic prospects of our continent. In my welcome address on Sunday, June 18, 2023, I catalogued a number of critical technological infrastructures that have been implemented in furtherance of AFREXIMBANK’s developmental objectives. Based on these investments, I am filled with profound optimism, enthusiasm, and great expectations that our collective journey to harness the transformative power of digitization for the betterment of our beloved Africa will materialise.
With the rich heritage and diverse talent, Africa is poised to embrace the digital revolution and leverage its vast potentials to propel our economies to unprecedented heights.
3. Not too long ago, the Ghana Trade Roadshow was held in Accra, an event organized by AFREXIMBANK in collaboration with Oakwood Green Africa. It was such an inspiring moment, which brought together key stakeholders who took bold and passionate steps towards advancing intra-Africa trade, which in due time will yield the envisioned results and bring immense benefits to our country.
4. Distinguished guests, we are indeed in the technological age, an era characterised by digitization and digital transformation, and therefore it is crucial to leverage digital platforms and ecosystems to drive efficient trade and economic growth.
The theme of this event, “Unlocking Africa’s Trade, Investment, and Commerce Opportunities Leveraging Digital Platforms and Ecosystems,” resonates deeply with current developments in the digital age. Therefore, collectively, we must critically examine pathways and innovate diverse approaches to unlock and deploy the full potentials of Africa’s trade, investment, and commerce opportunities for the betterment of our people.
Unlocking Africa’s Trade and Investments Opportunities
5. To do this, Ladies and Gentlemen, we must harness and leverage on the immense potential of digital platforms and ecosystems. The transformative power of technology has revolutionized industries worldwide, and Africa must seize this opportunity to boost economic growth and foster regional integration. This can be done through three main channels:
* First, enhancing digital infrastructure is paramount. Access to reliable and affordable internet connectivity is the foundation upon which digital platforms thrive. Governments and private sector stakeholders must collaborate to invest in broadband infrastructure, expand network coverage, and bridge the digital divide within and across countries.
By providing seamless connectivity, we can enable businesses, entrepreneurs, and consumers to participate fully in the digital economy and seize new trade and investment opportunities.
* Second, fostering digital entrepreneurship and innovation is crucial. Africa is a hotbed of entrepreneurial talent with technological savvy youthful population, and we must nurture and support such digital innovators.
By establishing incubation centres, providing mentorship programmes, and offering access to funding, we can empower start-ups and SMEs to develop innovative solutions that address the unique challenges and needs of our continent. Encouraging entrepreneurship and innovation will drive job creation, boost economic diversification, and attract investment in key sectors.
* Lastly, promoting digital skills development is imperative. Digital literacy and proficiency are prerequisites for individuals and businesses to harness the full potential of digital platforms. Educational institutions, in partnership with private sector entities, should design and implement programmes that equip our youth and workforce with the necessary digital skills and knowledge. By investing in training and upskilling digital programmes, we can create a highly empowered workforce to drive innovation, productivity, and competitiveness.
6. Ladies and Gentlemen, in all of these, let us not forget that the foundation has already been laid through regional integration initiatives such as the AfCFTA and AFREXIMBANK and we must leverage on them to unlock the trade, investment and commerce opportunities on the continent. The AfCFTA, for instance, presents a historic opportunity for increased intra-African trade. Digital platforms and efficient payment ecosystems can facilitate seamless cross-border transactions, reduce trade barriers, and promote the exchange of goods and services within the continent.
Pushing the Agenda – Role of Central Banks
7. Indeed, African central banks have been at the forefront of supporting digitalization and providing the necessary regulatory environment for FinTech’s and financial institutions to thrive in unlocking Africa’s trade, investment, and commerce opportunities. Our commitment to embracing digital platforms and ecosystems is evident through our concrete contributions and initiatives.
8. In Ghana for instance, one significant initiative we have undertaken is our active participation in the MANSA Platform. The central bank is currently serving as a verifier for financial institutions, including microfinance institutions, in Ghana, and proactively engaging these entities for them to be onboarded onto the platform. By serving as a verifier, we ensure that the KYC/CDD information of these institutions are accurate and reliable. This enhances transparency, reduces risks, and promotes trust among stakeholders.
The MANSA Platform not only streamlines due diligence processes but also facilitates smoother and more efficient interactions between African entities. It opens up new opportunities for businesses, enabling them to access a broader network of trusted counterparties across the continent.
9. Additionally, we have integrated the Pan-African Payment and Settlement System (PAPSS) platform and appointed the Ghana Interbank Payment and Settlement Systems Limited (GHIPSS) as the integration entity for locally regulated institutions. This allows for seamless cross-border payment and settlement transactions within Africa. By leveraging the PAPSS platform, we are eliminating the barriers and inefficiencies associated with traditional payment systems.
This promotes regional trade, investment, and commerce by facilitating faster, more secure, and cost-effective transactions. The integration of our local financial institutions into the PAPSS platform ensures that they can fully benefit from the opportunities presented by this innovative solution.
10. Ghana is also currently working with the Monetary Authority of Singapore on a Business san Borders project aimed at boosting the international trade prospects of SMEs of the respective countries through the implementation of digital trade platforms for market discovery.
The component trust corridor brings on board financial service providers to build mutual access to enhance information to facilitate non-collateralised lending based on borrower intent to pay. This solution has been admitted to the Bank of Ghana’s regulatory sandbox for testing. I am of the firm conviction that the success of this bold solution could be replicated in other countries under the AfCFTA project.
11. The success of these digital platforms and ecosystems, however, depends on the active participation and collaboration of all financial institutions and private businesses. We strongly encourage all stakeholders to embrace these initiatives and make them work for their respective businesses.
By joining these platforms and leveraging digital technologies, financial institutions can expand their reach, enhance efficiency, and unlock new market opportunities. Private businesses, on the other hand, can tap into the vast potential of intra-African trade, access a wider customer base, and foster mutually beneficial partnerships. Together, we can create a thriving digital ecosystem that drives economic growth, boosts investment, and propels Africa forward.
12. Ladies and Gentlemen, the Bank of Ghana is committed to supporting digitalization and providing an enabling regulatory environment for Fintechs and financial institutions to unlock Africa’s trade, investment, and commerce opportunities leveraging digital platforms and ecosystems.
Our involvement in the MANSA Platform and integration with the PAPSS platform are concrete contributions that aim to streamline processes, enhance transparency, and facilitate seamless transactions. We invite all financial institutions and private businesses to actively participate in these initiatives and harness the transformative power of digitalization. Together, we can shape a prosperous future for Africa.
13. Unlocking Africa’s trade, investment, and commerce opportunities through digital platforms and ecosystems requires a multi-faceted approach. By enhancing digital infrastructure, fostering entrepreneurship, creating an enabling regulatory environment, promoting digital skills development, and leveraging regional integration initiatives, we can position Africa at the forefront of the digital revolution.
Let us seize this moment to collaborate, innovate, and embrace the transformative power of technology for the benefit of our continent and its people.
14. In conclusion, Distinguished Guests, Ladies and Gentlemen, let us commit to the intra-Africa trade vision as we harness the boundless potential of Africa for future generations.
Collectively, we can unlock Africa’s trade, investment, and commerce opportunities. Thank you
Unless there are unexpected surprises, inflation is expected to decline gradually but still stay above the upper range of 8±2% until the end of 2025, as stated in the May 2023 Monetary Policy Report fromthe Bank of Ghana.
The report suggests that risks to the inflation forecast are mostly biased towards a lower outcome, given the relative stability of the exchange rate, a decrease in ex-pump petroleum prices, and the impact of base drift effects.
Consequently, these factors may dampen the upward movements in administrative prices.
Given these considerations, the Monetary Policy Committee decided to maintain the Monetary Policy Rate at 29.5% in May 2023.
Headline inflation had already declined significantly by 12.9% between December 2022 and April 2023. “The percentage of items in the Consumer Price Index (CPI) basket with inflation exceeding 50% is receding, an indication of a return to the disinflationary path.
Core inflation has also trended downwards, further supporting the disinflation process”.
However, inflation surged slightly to 42.2% in May 2023.
But the Bank of Ghana believes its latest forecasts suggest a disinflationary path on the horizon, supported by the monetary policy tightening, relative exchange rate stability, and some favorable base drift effects.
Headline inflation decelerated from a peak of 54.1% in December 2022 to 45.0% in March, and further down to 41.2 percent in April 2023, driven by both food and non-food prices.
Food inflation eased to 48.7% in April 2023, from 50.8% in March 2023, and 59.7% in December 2022. Nonfood inflation also declined to 35.4%, from 40.6% in March and 49.9% in December 2022.
The decline in headline inflation was occasioned by a deceleration in prices of both imported and locally produced goods.
Overall, the regulator of the banking industry said, price pressures have eased significantly across all items in the basket, largely supported by tight monetary policy, base-drift effects, relative stability in the exchange rate, and declining international crude oil pricesand, in turn, downward adjustments in ex-pump petroleum prices.
It has been requested that the Central Bank punish commercial banks, financial institutions, and their employees who are found accountable for scamming clients.
This is the view of a banking consultant, Richmond Atuahene who believes that the banking sector regulator must be proactive in addressing these infractions which keep occurring.
Speaking in an interview on Accra-based Asaase Radio, Dr Atuahene said, “I believe Bank of Ghana should be very proactive and sanction some of these banks and must make sure that all these incidents are reported because I have an experience.”
“In my case, they suppressed it, and these three guys who caused this mess were able to get onto a new institution,” he disclosed.
Dr Atuahene warned that these fraud-related incidents, if not addressed, will continue to cause vulnerabilities in the banking sector.
Meanwhile, Ghana’s banking sector and Specialised Deposit-Taking Institutions (SDI) lost approximately, GH¢56 million in 2022, representing a 7.88 percent reduction compared to the GH¢61 million recorded in 2021.
However, the number of attempted fraud cases for the banking and SDI sectors in 2022 increased to 2,998, as compared to 2,347 cases in 2021, which is a 27.74 percent rise.
This was contained in the 2022 trends and statistics of the Bank of Ghana (BoG) Banks, SDIs and Payment Service Providers (PSPs) fraud report, covering January 1 to December 31, 2022.
It was observed that forgery and manipulation of documents, fraudulent withdrawals, cheque fraud, cyber/email and cash theft (cash suppression), were the major drivers (top five) fraud typologies that impacted most of the financial institutions.
Forgery and manipulation of documents also emerged as the prominent fraud typology, recording the highest loss of GH¢33 million.
In addition, money fraudulently withdrawn from customers’ accounts resulted in GH¢7 million losses, most of which the Central Bank observed involved staff of banks and SDIs, while cheque fraud, arising from cloned cheques accounted for a loss value of GH¢5 million.
The report however indicated that the fraud cases involving staff decreased to 188 in 2022, as compared to 278 in 2021.
The Ghana Cedi is currently trading against the dollar at a purchasing price of 10.9843 and a selling price of 10.9953, according to the Bank of Ghana’s interbank exchange rates for Wednesday, June 19, 2023.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.50 and sold at a rate of 12.00.
Against the Pound Sterling, the Cedi is trading at a buying price of 14.0764 and a selling price of 14.0916.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.40 and sold at a rate of 15.10.
The Euro is trading at a buying price of 12.0014 and a selling price of 12.0133.
At a forex bureau in Accra, Euro is being bought at a rate of 12.40 and sold at a rate of 12.90.
The South African Rand is trading at a buying price of 0.6031 and a selling price of 0.6036.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 59.7827 and a selling price of 59.8737.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 54.6026 and a selling price of 54.6567.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Today, June 15, 2023, the Ghana Cedi is trading against the dollar at a purchasing price of 10.9780 and a selling price of 10.9890, according to the Bank of Ghana’s interbank exchange rates.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.50 and sold at a rate of 11.90.
Against the Pound Sterling, the Cedi is trading at a buying price of 13.9355 and a selling price of 13.9505.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.40 and sold at a rate of 15.10.
The Euro is trading at a buying price of 11.9107 and a selling price of 11.9215.
At a forex bureau in Accra, Euro is being bought at a rate of 12.30 and sold at a rate of 12.80.
The South African Rand is trading at a buying price of 0.5996 and a selling price of 0.6001.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 42.3119 and a selling price of 42.4250.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 55.7128 and a selling price of 55.7682.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
The Bank of Ghana (BoG) has cautioned the public against engaging in transactions with some 97 unlicensed entities that are engaged in the provision of loans through mobile applications to the Ghanaian public.
Below is a list of loan applications offered on the market without a licence or authorisation from Bank of Ghana.
Bank of Ghana’s interbank exchange rates has it that the Ghana Cedi is now trading against the dollar at a purchasing price of 10.9654 and a selling price of 10.9764 as of today, June 14, 2023.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.50 and sold at a rate of 11.80.
Against the Pound Sterling, the Cedi is trading at a buying price of 13.8456 and a selling price of 13.8617.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.35 and sold at a rate of 14.95.
The Euro is trading at a buying price of 11.8491 and a selling price of 11.8550.
At a forex bureau in Accra, Euro is being bought at a rate of 12.20 and sold at a rate of 12.80.
The South African Rand is trading at a buying price of 0.5911 and a selling price of 0.5917.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 42.9206 and a selling price of 42.0299.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 55.7128 and a selling price of 55.7682.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
The Bank of Ghana has released today’s Interbank forex rates, providing insights into the currency exchange dynamics on June 5, 2023. According to the data, the Ghana Cedi is currently trading against the US dollar at a buying price of 10.9654 and a selling price of 10.9764.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.40 and sold at a rate of 11.90.
Against the Pound Sterling, the Cedi is trading at a buying price of 13.6783 and a selling price of 13.6930.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.00 and sold at a rate of 14.80.
The Euro is trading at a buying price of 11.7622 and a selling price of 11.7739.
At a forex bureau in Accra, Euro is being bought at a rate of 12.00 and sold at a rate of 12.70.
The South African Rand is trading at a buying price of 0.5622 and a selling price of 0.5628.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 42.3119 and a selling price of 42.4250.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 18.00.
For the CFA, it is trading at a buying price of 55.7128 and a selling price of 55.7682.
At a forex bureau in Accra, CFA is being bought at a rate of 16.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
The Bank of Ghana‘s interbank forex rates for today, May 31, 2023, show that the Ghana Cedi is trading versus the dollar at a purchasing price of 10.9670 and a selling price of 10.9780.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.40 and sold at a rate of 12.00.
Against the Pound Sterling, the Cedi is trading at a buying price of 13.5925 and a selling price of 13.6072.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.00 and sold at a rate of 15.00.
The Euro is trading at a buying price of 11.7562 and a selling price of 11.7669.
At a forex bureau in Accra, Euro is being bought at a rate of 12.00 and sold at a rate of 12.70.
The South African Rand is trading at a buying price of 0.5561 and a selling price of 0.5566.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 42.2438 and a selling price of 42.3450.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 18.00.
For the CFA, it is trading at a buying price of 55.7459 and a selling price of 55.7967.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
The Bank of Ghana’s interbank forex rates for today, May 30, 2023, show that the Ghana Cedi is trading against the dollar at a purchasing price of 10.9932 and a selling price of 11.0042.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.30 and sold at a rate of 12.00.
Against the Pound Sterling, the Cedi is trading at a buying price of 13.5788 and a selling price of 13.5935.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.00 and sold at a rate of 15.00.
The Euro is trading at a buying price of 11.7728 and a selling price of 11.7846.
At a forex bureau in Accra, Euro is being bought at a rate of 12.00 and sold at a rate of 12.70.
The South African Rand is trading at a buying price of 0.5594 and a selling price of 0.5599.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 42.1277 and a selling price of 42.2441.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 12.00 Naira for every 1 Cedi and sold at a rate of 18.00.
For the CFA, it is trading at a buying price of 55.6622 and a selling price of 55.7180.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Bank of Ghana (BoG), has indicated that the rate of increase in credit given to the private sector has slowed as a combination of factors, including a tight monetary policy stance, bank portfolio rebalancing, and a reduction in economic activity, have taken their toll.
Private sector credit (PSC), in nominal terms, reached GH¢64.9billion at the end of April this year – a 19.74 percent increase over the GH¢54.2billion recorded at the same time in 2022. However, the growth rate was lower than the 26.5 percent recorded during same period of the previous year.
A perusal of the data shows that, in nominal terms, the quantum of PSC stood at GH¢72.9billion, GH¢73.7billion and GH¢63.8billion in October, November and December of 2022. In the first quarter of this year, it reached GH¢67.6billion in January, GH¢65.5billion in February and GH¢65.7billion in March.
The central bank’s data further revealed that, in real terms, PSC has contracted by 15.2 percent compared to 2.4 percent growth recorded during the same comparative period.
“Private sector credit generally slowed in line with the tight monetary policy stance, banks’ portfolio rebalancing after the domestic debt exchange, and moderation in economic activity,” Governor Ernest Addison said during a press engagement at the conclusion of the most recent Monetary Policy Committee meeting.
While average lending rates of banks have retreated marginally – at 31.66 percent in April 2023, it remains more than 1,000 basis points (bps) above the comparable period in 2022, when it was 21.61 percent; and banks have turned their attention to shorter-term Treasury instruments on account of the Domestic Debt Exchange Programme (DDEP) and elevated yields.
Moreover, the apex bank has raised its key rate by a cumulative increase of 1,450 basis points since late 2021, even as the moderation in economic activity has played a role in the decline of PSC. The overall slowdown in economic growth has led to reduced demand for credit, as businesses become more cautious about borrowing and investing in such an environment.
Already, Fitch Solutions in a commentary published in March this year predicted a slowdown in the banking industry as client loan growth is expected to ease to 18 percent in 2023 from 30.2 percent in 2022, citing the aforementioned factors.
Fitch Solutions’ forecast suggests that while nominal client loan growth will still be in double digits this year, real client loan growth will be significantly weaker – anticipated to be -7.7 percent by end of the year.
While Fitch anticipates excess liquidity in the system as deposits outstrip loans, it believes this will be channeled to low-risk businesses in sectors such as mining.
“Households and firms are expected to face challenges in borrowing due to rising interest rates, but Fitch Solutions anticipates that corporate credit will grow at a faster pace than household credit. The transparency and follow-up from banks regarding firms’ performance contribute to their relatively stronger creditworthiness compared to households,” Fitch Solution noted.
An expert in banking and finance, Dr. Richard Atuahene, has asked the Bank of Ghana (BoG) and the government to boost the Ghana Financial Stability Fundin order to guarantee the survival of struggling local banks.
During an appearance on The Big Issue on Citi TV and Citi FM, Dr. Atuahene emphasized that, in the wake of the domestic debt exchange programme, properly establishing the Ghana Financial Stability Fund would provide significant relief for struggling banks.
“The way out is when the Ghana Financial Stability Fund is done perfectly…If you call on the shareholder to recapitalize these losses whereas the state which brought these losses does nothing, it worsens our fiscal situation.”
Dr. Atuahene also cautioned against the government’s excessive borrowing, emphasizing that it could become costly for the country if the borrowed funds are not utilized productively.
“The way we are borrowing out and not putting it to productive use, a time will come, we will have to pay through our nose.”
The Ghana Financial Stability Fund was established with a target size of GH¢15 billion to be provided by the Government of Ghana and its development partners.
The Fund is aimed at providing liquidity to financial institutions that participated fully in the Domestic Debt Exchange.
All financial institutions (banks, SDIs, pension schemes, collective investment schemes, fund managers, broker/dealers, insurance firms) that fully participated in the Debt Exchange could access the GFSF for augmented liquidity support, with effect from the date of completion of the Debt Exchange.
The Fund is managed by theBank of Ghanaunder unique operational guidelines being developed by the Financial Stability Council.
A Memorandum of Understanding (MoU) will be signed between the Bank of Ghana and the Ministry of Finance to outline the repayment terms for the $3 billion loan from the International Monetary Fund (IMF).
The loan agreement includes favorable terms such as a 0% interest rate, a grace period of 5.5 years, and a final maturity period of 10 years.
This loan falls under the Extended Credit Facility (ECF) arrangement, which spans over a period of three years between Ghana and the IMF.
As part of the program, Ghana aims to achieve a front-loaded fiscal adjustment equivalent to 5.1 percentage points of Gross Domestic Product (GDP) within the three-year period from 2023 to 2025. This adjustment will be achieved through the Primary Balance on a commitment basis and fiscal effort.
Finance Minister Ken Ofori-Atta emphasized that the management of debt, both domestic and external, is crucial in restoring public debt to sustainable levels by 2028 while adhering to the two binding constraints.
They are the Public Debt (in present value terms) to GDP ratio of 55% or less; and External Debt Service to Revenue ratio of 18% or less.
The programme will be monitored and reviewed semi-annually.
The Finance Minister emphasised that Ghana’s Post Covid-19 Programme for Economic Growth, which is the government’s blueprint for addressing the economic crisis and underpins the IMF Programme is aimed at restoring macroeconomic stability; bringing fiscal operations and public debt to sustainable levels, supporting structural reforms and promoting strong and inclusive growth while protecting the poor and vulnerable.
The Staff Level Agreement (SLA) was secured in record time in December 2022, six months after Ghana applied for a Fund-supported Programme.
A financial analyst, Joe Jackson has opined that former President,John Dramani Mahamawould face a difficult task in restoring the licenses of banks that, in his opinion, were unjustifiably collapsed during the Bank of Ghana (BoG) clean-up opeation.
Speaking to the media on Monday, May 15, he “It is going to be a tough one”.
However, he welcomed the promise by Mr Mahama to encourage more local participation in Ghana’s financial sector.
MrJacksonsaid Ghana really needs more of the indigenous people to have active participation in the sector.
“There is something else that should excite a little about what he said. Some of us have in time past worried about the concentration of foreign ownership in our financial sector.
“Unfortunately, the closure of [some of the local banks] meant that the concentration of foreign ownership became higher because our local institutions have had issues with governance.
“[John Mahama] says they will be encouraged, that is a good one and I pray it happens because we definitely do need Ghanaians in the final institutions, we definitely need financial institutions that are sympathetic to the Ghanaian course but which will hold themselves to the highest standards of behaviour especially in governance,” he said while reacting to a promise by the newly-elected flagbearer of the National Democratic Congress to restore the license of the banks that unjustifiably collapsed.
Delivering his formal acceptance speech at the University of Development Studies (UDS) on Monday, May 15 after his victory as flagbearer of the National Democratic Congress (NDC) on Saturday, May 13 he said “we shall promote robust, local participation in our banking and financial, telecommunication, tourism, mining and agric and manufacturing sectors to grow our economy and create sustainable employment for our youths.
“We will restore indigenous Ghanaian investments in the finance and banking sector and we will create a tier banking system that will serve various segments of the market.
“We will give the opportunity to experience banking hands who were laid off needlessly to secure their careers once more and move away from the menial jobs that they were compelled to take.
“As far as practicable the banking licenses that were unjustly canceled by this government will be restored.”
Some local banks collapsed when the central bank revised the minimum paid-up capital for existing banks and new entrants from GHS120 million to GHS400 million.
According to the regulator, this was to test the viability of the banks.
The banks that were unable to meet this new requirement were either merged or collapsed.
Some nine local banks, 23 savings & loans companies, 347 microfinance institutions, 39 finance houses and 53 fund management companies closed down during the exercise.
UniBank, The Sovereign Bank, The Beige Bank, Premium Bank, The Royal Bank, Heritage Bank, Construction Bank, UT Bank, Capital Bank all collapsed. Some analysts and observers criticized the BoG and the Finance Ministry over the collapse of the banks because in their views, these banks could have been saved to continue employing Ghanaians.
Prof. Godfred Bokpin, a finance lecturer at the University of Ghana Business School, believes that it might be premature for commercial banks in Ghana to lower their lending rates in direct response to the recent decline in inflation rates.
Bokpin’s viewpoint comes after the Bank of Ghana urged commercial banks in the country to decrease their lending rates, given the ongoing decrease in inflation figures.
While Bokpin acknowledges the positive nature of this call, he emphasizes the significance of the Bank of Ghana’s policy rate and how it may evolve in the upcoming months.
According to Prof. Godfred Bokpin, if the central bank in Ghana is confident that the disinflation process has taken hold and will decline significantly, it should be reflected in the policy rate and treasury bill rate.
Bokpin emphasized the importance of three key variables in Ghana’s reference rates: the policy rate, treasury bill rate, and interbank rate.
He argues that if the lending rate set by the Bank of Ghana for commercial banks does not experience a significant reduction in line with the decrease in inflation, then the central bank lacks the moral authority to expect commercial banks to take greater actions than it is willing to undertake itself.
“Generally we will say it is a good call but to the extent that it is coming from the Bank of Ghana is even more interesting. The question will be how will bank of Ghana’s policy rate respond in the next couple of months. Because if it is the considered view of the central bank that the process of disinflation has become entrenched and will come down sharply, then that should also reflect in the policy and treasury bill rate.”
“There are three variables that are very important in the Ghana reference rates coming down. The policy rate, treasury bill rate and the interbank rate. So if the rate at which Bank of Ghana itself will be lending to the commercial banks does not come down drastically to reflect the reduction in inflation, it does not have the moral right to ask commercial banks to do more than it is willing to do.”
Inflation has dropped to 41.2 percent for the month of April 2023. This represents a 3.8 percentage point decrease from the 45.0 percent recorded in March 2023.
This was captured in the Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS) on Wednesday, May 10, 2023.
Per the data, food inflation also stood at 48.7 and Non- food inflation 35.4 %.
The banking industry’s stakeholders have been reassured by the Central Bank’s second deputy governor, Elsie Addo Awadzi, that the industry is still strong, liquid, and solvent despite the current economic challenges and debt restructuring measures.
According to her, prior to the onset of the Coronavirus pandemic, banking sector clean-up exercise and recapitalisation of banks ensured that the industry had the required capital and liquidity to contain macroeconomic shocks.
“Indeed, our banking sector remains solvent and liquid even after the pandemic, in the face of recent macroeconomic challenges, and in particular the Government debt restructuring efforts.
It is worth mentioning that the banking sector clean-up and recapitalisation efforts before the onset of the pandemic, provided the industry with the necessary capital and liquidity buffers to withstand the pandemic and the recent macroeconomic challenges.”
She made this known at an event to launch the ABSA SME Loan at 10% proposition to Small and Medium Enterprises operating in the country.
Despite the ongoing challenges, the Second Deputy BoG Governor noted the banking sector must not become complacent and therefore called for stringent measures by banks aimed at rebuilding buffers to secure long-term resilience.
She however maintained that SMEs in the country continue to play a vital role in the economic development which requires inclusive financial systems to support their growth and resilience.
“While regulating and supervising banks to promote their safety and soundness, the Bank of Ghana expects banks to be more inclusive in their product and service offerings to ensure that all economic actors in Ghana are able to access much-needed finance to grow their businesses and contribute to the growth of our economy”
“We also expect banks to deploy the funding available to them into more lending to the private sector especially to SMEs, within the framework of robust credit underwriting and risk management,” she concluded.
The Ghana Cedi is currently trading against the dollar at a purchasing price of 10.9543 and a selling price of 10.9653, according to the Bank of Ghana’s interbank exchange rates for Wednesday, May 11, 2023.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.60 and sold at a rate of 12.10.
Against the Pound Sterling, the Cedi is trading at a buying price of 13.8298 and a selling price of 13.8448.
At a forex bureau in Accra, the pound sterling is being bought at a rate of 14.30 and sold at a rate of 15.20.
The Euro is trading at a buying price of 12.0207 and a selling price of 12.0316.
At a forex bureau in Accra, Euro is being bought at a rate of 12.60 and sold at a rate of 13.30.
The South African Rand is trading at a buying price of 0.5803 and a selling price of 0.5809.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 54.5195 and a selling price of 54.5690.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 14.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 54.6217 and a selling price of 54.6713.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
Note that these rates may be different at a forex bureau near you. Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
Take note that these rates could vary at a currency bureau close to you. Afriswap Bureau De Change in Osu, Accra, provides our exchange rates.
The Interbank forex rates from the Bank of Ghana today, May 9, 2023, have shown that the Ghana Cedi is trading against the dollar at a buying price of 10.9493 and a selling price of 10.9603.
At a forex bureau in Accra, the dollar is being bought at a rate of 11.50 and sold at a rate of 12.00.
Against the Pound Sterling, the Cedi is trading at a buying price of 13.8378 and a selling price of 13.8527.
At a forex bureau in Accra, thepound sterling is being bought at a rate of 14.30 and sold at a rate of 15.20.
The Euro is trading at a buying price of 12.0738 and a selling price of 12.0847.
At a forex bureau in Accra, Euro is being bought at a rate of 12.50 and sold at a rate of 13.20.
The South African Rand is trading at a buying price of 0.5977 and a selling price of 0.5983.
At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.90.
The Nigerian Naira is trading at a buying price of 42.2408 and a selling price of 42.3285.
At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 14.00 Naira for every 1 Cedi and sold at a rate of 19.00.
For the CFA, it is trading at a buying price of 54.2800 and a selling price of 54.3290.
At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.
The National Democratic Congress’ aspiring flag bearer,Dr. Kwabena Duffuor, has stated that he endured hardships under the ruling New Patriotic Party (NPP).
This comes on the back of a skewed campaign by his opponents that he has received some form of sponsorship for his bid to lead the National Democratic Congress (NDC).
However, the former Governor of the Bank of Ghana(BoG) has flatly denied the allegation.
According to him, he has not received any sponsorship from the NPP to destroy the NDC which he contributed to building.
He disclosed this when addressing the party’s delegates in Adansi Asokwa Constituency in the Ashanti region as part of his four days campaign in the Ashanti region.
Dr. Duffuor however urged the party supporters particularly the delegates to disregard the destructive campaign his opponents are sharing to party members.
“I funded the NDC so I’m NDC and nothing can change my love for NDC. The NPP destroyed my banks and tried to collapse every business under my control. I want to tell you that the NPP has hurt me more than any other member of the party. The NPP can never use me to destroy the NDC. My main aim is to return NDC to power to make Ghana better,” Dr. Duffuor reiterated.
He pleaded with the party supporters to vote for him to lead the party into election 2024 on Saturday 13th May 2023 in the presidential election by thumb printing #3 on the ballot paper.
The Bank of Ghana (BoG) has advisedGhanaians to disregard speculations that the institution plans to soon make a GH500 coin the official unit of exchange in the country.
Reports are rife on social media alleging that such a coin, with samples already viral, is in the works.
But the apex bank said it has no such intentions.
The Director for Currency Management at the Bank of Ghana, Dominic Owusu, dismissed the reports and described them as false.
“When there is a currency issuance or change, the Bank of Ghana will come with an appropriate press release to inform the public. We saw on social media that the central bank will issue a GH¢500 note or coin, but the bank has not done any such thing. So it’s not true,“ Mr Owusu clarified.
Mr. Owusu also responded to reports that the one pesewas coin is no longer legal tender.
“The central bank has not demonetised the one pesewa coin,” he said in a Joy News interview.
Mr. Owusu further urged Ghanaians to handle the cedi notes with care to prevent them from getting worn out easily.
“We want the education out there for people to learn how to handle the cedi not to worn out. That’s why you journalists are here, and I want you to help the central bank in that quest. The bank is also doing its part and will make sure all is done to save the cedi”, Mr. Owusu stressed.
TheBank of Ghanahas warned Ghanaians to refrain from sending gifts to others in the form of cedi bouquets and hampers.
It said the currency was issued to be used as a medium of exchange for the purchase of goods and services.
The Director of the Currency Department at the central bank, Mr.Dominic Owusu, told journalists today (Thursday, March 30, 2023) that any other use of the currency was illegal and subject to prosecution.
He said the bank had noticed that some people were using the cedi notes as bouquets and hampers as gifts during weddings, birthdays and other celebrations, a practice he said must be stopped.
He said beyond being illegal, such acts made it easier for the notes to spoil or get defaced.
Given that spoilt and worn-out notes are replaced at a cost, he said such acts affected the operations of the central bank.
Mr Owusu was speaking to journalists on how to preserve the currency as part of events marking Ghana month in March.
He said the local currency was a great symbol of the country and efforts to preserve its quality and cleanliness must be prioritised by all.
The Bank of Ghana has been given the history of the Ghanaian currency, the cedi, with just a few days to the celebration of Ghana’s 66th Independence Day.
The Ghana Cedi, which was created by the Bank of Ghana to replace the West African Pound (£WA), was introduced on the eve of Ghana’s independence.
The Cedi has since undergone many phases and enhancements.
A major currency reform in 1965 saw a wide acceptance of the decimal system for the Cedi, a name derived from the Akan word, “sedie.”
A third and fourth reforms in 1969 and 1972 respectively were undertaken after a military coup d’etat, reflecting the political and economic uncertainty during those periods.
The Bank of Ghana issued a a press statement to detail the evolution of the Cedi to mark Ghana’s 66th Independence Day celebrations.
In order to serve retail consumers who might not want a rollover of their cocoa bills, the Ghana Cocoa Board (COCOBOD), the Bank of Ghana, and the commercial banks have reached an agreement that permits banks to utilise COCOBOD’s deposits/placements with the banks.
This comes after the BoG first instructed banks not to reimburse customers for their maturing cocoa bills investments due to COCOBOD’s cash flow issues.
The Central Bank stated in a statement that it anticipates the short-term cash flow issues COCOBOD is currently experiencing would be resolved quickly to allow the cocoa regulator to fulfill its investment responsibilities.
“COCOBOD has assured us that the outlook for the 2023 crop season is good, and Cocoa purchasing are ahead of last year. We therefore expect that this short-term cash flow challenges facing Cocoa Board will be resolved soon to enable COCOBOD to meet its obligations to investors.”
On Thursday, January 19, 2023, a six-month Cocoa bill with face value of ¢940.42 million matured.
The Central Bank said “BoG went through the usual processes to reissue on behalf of COCOBOD a new six-month Cocoa bill to raise funds to cover the maturing obligation, but unfortunately, the auction failed and was severely undersubscribed resulting in a shortfall of¢ 855.42million”.
“At a meeting held on Friday, 20th January 2023 among the banks, COCOBOD and Bank of Ghana, it was agreed that all institutional investors will roll over their maturing cocoa bill for Tender 6155. Financial Institutions have agreed to roll over their cocoa bills investments”, it explained.
It added that “cocoa bills, like the Bank of Ghana bills, were designed as instruments to be held just by financial institutions. Unfortunately, it has come to the notice of the Bank of Ghana that some Financial Institutions sold their instruments to their retail clients. To reduce the cash flow challenges on retail holders of cocoa bills, the Bank of Ghana, COCOBOD and the commercial banks have agreed to allow banks to use COCOBOD’s deposits/placements held at the various banks to cater for retail customers who may not want a rollover of their cocoa bills”.
Some soldiers on guard at the Bank of Ghana (BoG) premises in Takoradi, in the Western Region on Tuesday, December 27, 2022, allegedly brutalized some innocent members of a masquerade group who were parading through the streets of the metropolis.
Narrating the incident to Empire News’ Kwame Malcolm, the victim, Roberta Monkah said she has been left with wounds under her right eye following the assault.
“We were in a procession and someone lighted firecrackers and rushed back to my fiancé and I. Out of nowhere three soldiers from the Bank of Ghana approached us and started assaulting my fiancé. So it was there I told them that he is not the one who lit it. But out of nowhere a soldier from behind kicked me and I fell and he hit my lower eye with the butt of his gun leaving blood gushing out,” she narrated.
She was thus taken to the Ghana Ports and Harbours Hospital in Takoradi for medical attention.
She however added that upon lodging a complaint at the Takoradi Central Police station, she was asked to bring a doctor’s report which she’s yet to obtain at a cost of GHc500.
The Christmas period in the Sekondi Takoradi metropolis is marked by various masquerade groups parading and dancing to brass band music on the streets of the metropolis.
Takoradi has earned the accolade as the preferred Christmas destination.
The new rules, according to the central bank, will aid in the creation of licensed institutions and the implementation of each one’s AML/CFT&P compliance regime.
The anti-money laundering Act, 2020 (Act 1044) sections 52 and 61, as well as section 92(2)(a)(vii) of the banks and specialized deposit-taking institutions, Act 2016, were cited by the bank as justification for the new instruction (Act 930).
The BoG said the enactment of the now repealed Acts: Anti-Money Laundering Act, 2008 (Act 749) and AntiMoney Laundering (Amendment) Act, 2014 (Act 874), together with the Anti-Terrorism Act, 2008 (Act 762), among others has intensified Ghana’s efforts towards the fight against money laundering, terrorism and proliferation financing (ML/TF&PF).
According to the BoG, the purpose of Act 1044 will not be realised unless there is an effective implementation of the collaborative measures being adopted by the Bank of Ghana (BOG) and the Financial Intelligence Centre (FIC) as well as compliance by accountable institutions (AIs), adding, “It is against this background that the BoG and FIC have developed this Guideline for AIs”.
The guideline has incorporated essential elements of Act 1044, Act 762 as amended and regulations, relevant Financial Action Task Force (FATF) Recommendations, the sound practices of the Basel Committee on Banking Supervision and other international best practices on AntiMoney Laundering and the Combating of the Financing of Terrorism and the Proliferation of Weapons of Mass Destruction (AML/CFT&P).
The scope of unlawful activities includes counterfeiting currency, counterfeiting and piracy of products, environmental crime, participation in an organised criminal group, and racketeering and terrorism, including terrorist financing.
The functions of the Bank of Ghana include adopting a risk-based approach in supervising and monitoring AIs; monitor and periodically assess the level of ML/TF&PF risk of the AIs; carry out an examination of AIs based on the Bank of Ghana risk-assessment framework, request production of, access to, the records, documents, or any other information relevant to the supervision and monitoring of AIs and develop guidelines, directives or notices to ensure compliance.
Others are to provide feedback on compliance with obligations under the Act 1044 by AIs; approve the appointment of the AMLRO of AIs; and undertake any other activity necessary for assisting AIs to understand their obligations under Act 1044.
Aside from these, the BoG would also cooperate and share information with any other competent authorities in the performance of functions and the exercise of powers under Act 1044.
The bank shall initiate and act on a request from a foreign counterpart and notify FIC immediately; impose administrative penalties for non-compliance with Act 1044; issue Guidelines/Notices/Directives to ensure compliance with Act 1044; perform any other function as may be required to ensure compliance with Act 1044; among others.
The Bank of Ghana (BoG) has increased mobile money transaction and wallet limits.
The Bank in a statement issued on December 22, 2022, noted the review is part of measures to facilitate more efficient payments, encourage the seamless transition to a cash-lite society as well as promote the use of non-cash models of payments.
According to the release, “the aggregate monthly transaction limits will however remain unchanged.”
Find below the new review:
Daily transaction
Minimum KYC Account which initially had a limit of ¢1,000 has been upgraded to ¢2,000.
Medium KYC Account with a current limit of ¢5,000 has been increased to ¢10,000.
Enhanced KYC Account with a ¢10,000 threshold has been reviewed to ¢15,000.
Maximum account balance limitand monthly transaction limits are attached below:
Government spending and arrears clearance in the first nine months of 2022 was broadly within target.
According to the Bank of Ghana, some key expenditure lines, however, recorded overruns.
Total expenditures and arrears clearance, for the first nine months of 2022, summed mainly up to ¢99.570 billion (16.8% of Gross Domestic Product), below the target of ¢102.566 billion (17.3% of GDP).
This outturn represented year-on-year growth of 30.1%. The outturn was also 97.1% of the target.
Of the expenditures, Compensation of Employees (including wages and salaries, pensions & gratuities, and other wage related expenditure) was ¢27.14 billion, lower than the target of ¢27.94 billion.
This outturn represented 97.1% of the target.
In terms of fiscal flexibility, compensation of employees constituted 42.0% of domestic revenue mobilized, better than the 50.4% recorded in the corresponding period of 2021.
Use of Goods and Services totalled ¢4.233 billion, lower than the expected target of ¢5.117 billion. The outturn was 17.3% below the target, but recorded a year-on-year growth of 25.9 percent.
Total interest payments of ¢32.10 billion was higher than the projected target of ¢30.890 billion by 3.9%, and accounted for 32.2% of total expenditure.
It also constituted 49.7% of domestic revenue, compared with 54.7% recorded in the corresponding period of 2021. Domestic interest payments accounted for 78.0% of the total interest payments during the period under review.
Grants to other government units consisting of National Health Fund, Education Trust Fund (GET Fund), Road Fund, Energy Fund, District Assemblies Common Fund (DACF), Retention of IGFs, transfer to GNPC and other earmarked funds all summed up to ¢17.562 billion, above the envisioned target of ¢16.820 billion by 4.4%.
It also recorded a year-on-year growth of 57.7%.
Other expenditures made up of ESLA Transfers, Covid-19 related expenditures, and other critical spending, for the first nine months of 2022 was ¢7.093 billion.
ESLA transfers of ¢3.816 billion was above the projected target of ¢3.319 billion by 15.0%.
A new version of the GH1 coin with improved security measures has been introduced, according to the Bank of Ghana (BoG).
“The upgraded GH¢1 coin is bi-metallic with an outer gold and inner silver. The coin has a pronounced rough edge and incorporates a latent image, which appears in a rectangular form below the Scale of Justice at the back,” parts of a statement issued by the BoG read.
Ordinary, this announcement should be welcomed news to Ghanaians because it will help prevent fraud and help ensure that the country’s currency is secured.
But Ghanaians on social media are not taking the announcement of the new GH¢1 coin, which will be in circulation from Monday, December 12, 2022, well.
Some Tweeps have been questioning the time of the move by the BoG and the amount it might have cost the country, given the current economic hardships.
“Useless people, how much will this cost us huh? as for Nana Addo the least said about him the better,” one Twitter user wrote.
Some also said that the BOG should focus on stabilising the value of the Ghana cedi rather than issuing new currencies.
“Under Akufo Addo our currency has depreciated badly n he has introduced new denominations new features on our currency n wiping out some…what development paaa will this bring to the nation, of what benefit is this…Total waste,” another Ghanaian wrote.
The Governor of the Bank of Ghana, Dr Ernest Addison, has expressed optimism that the proposed Debt Exchange Programme announced by the government will bring some confidence in the economy as well as enhance the efforts of the Central Bank in controlling inflation.
He noted that the economic challenges which have affected many banks have led to the high cost of borrowing and doing business.
Speaking at the Annual Dinner of the Chartered Institute of Bankers, Ghana, Dr Addison assured of the Central Bank’s support to financial institutions to provide them with additional liquidity during the exercise.
“In addition to the near-term adoption of the IMF programme, we will provide a balance of payment support to help with financing gaps, boost investor confidence and restore stability.”
The Government on Sunday announced a slash in interest payments for domestic bondholders to zero percent in 2023 and pegged 2024 interest payments at 5 percent.
The government, however, said there will be no haircut on the principal of bonds, adding that individuals with government bonds will have their full investments upon maturity.
In a public address on Sunday, December 4, on the current economic situation, the Finance Minister, Ken Ofori-Atta said the government will ensure that people’s investments are safe. He further announced that interest payments for domestic bondholders for 2024, will be pegged at only 5% adding that from 2025, the rate increases to 10%
Meanwhile, the Finance Minister has admonished the media to be circumspect and disseminate the right information regarding the current economic crisis and the government’s debt exchange programme in order not to create unnecessary panic among investors.
“This debt exchange provides an orderly way to put our economy back on track. These efforts will be complemented by fiscal measures to protect the neediest and most vulnerable in society. The Government expects overwhelming support for this exchange.
“And in truth, the success of this necessary endeavour depends, of course, upon the public’s cooperation. That will also mean the media being helpful in disseminating the right information to economic actors. We are all in this together, and we intend to get out of this together,” Mr Ofori-Atta said.
The Central Bank has attributed some of Ghana’s current economic crisis to external factors that arose as a result of the United States of America’s (U.S.A.) efforts to stabilise their economy.
This was stated in a report issued by the Bank of Ghana (BoG) following its 109th Monetary Policy Committee meeting on November 28.
The BoG, in its report, made sure to emphasise the US’s role in escalating economic conditions for several countries around the world, including Ghana, while citing a number of factors that have contributed to Ghana’s current economic situation.
According to the Central Bank, when the US Federal Reserve revised some of its policies, it resulted in “tight global financing conditions and a stronger US dollar against major international currencies.”
In September 2022, the Federal Reserve raised its benchmark interest rate by 0.75 percentage points, the third increase in a row, bringing the Fed rate to 3%-3.25% By doing so, the US central bank, as part of efforts to check its inflation (8.2% as of September), increased demand for the dollar from foreign investors attracted by the higher returns available in the country.
Since the US dollar is the existing currency for global trade, emerging markets faced a rise in the cost of imports.
According to the Bank of Ghana, these external shocks have had severe consequences on the Ghanaian economy, reflected in high and rising inflation and depreciation of the local currency.
“These developments have spilled over into currency pressures and imported inflation, complicated access to external capital markets, and resulted in acute capital outflows, especially in emerging markets and frontier economies,” the Central Bank added.
Per the Bank’s report, the foreign exchange market witnessed increased volatility, with intense pressure on the local currency, especially in September and October 2022.
Other external factors that led to the significant drop in the value of the cedi include; the sovereign downgrades, the de facto closure of the international capital market, portfolio reversals, and increased demand for foreign exchange amid supply constraints.
As of November 24, 2022, the Ghana Cedi cumulatively depreciated by 54.2 percent against the US dollar.
The local currency lost 48.9 percent and 49.9 percent of its value to the Pound and Euro, respectively.
In comparison with the same period of last year, the Ghana Cedi was much stronger.
It depreciated by 2.6 percent and 0.2 percent against the US dollar and the Pound, respectively, and appreciated by 6.6 percent against Euro.
Since revising the interest rate, the US has seen its inflation rate drop to 7.7% as of October 2022.
Dr. Ernest Addison, the governor of the Bank of Ghana (BoG), has expressed worry about the solvency of some Ghanaian banks.
According to him, the Central Bank will put in measures to ensure that banks remain solvent. This, he said is the most important task of the Central Bank.
The decision by the BoG comes as the government prepares to restructure its debt to pave way for an International Monetary Fund (IMF) bailout. This will include haircuts to bondholders.
Dr. Ernest Addison explained at a media briefing that: “The good thing is that we think that there are adequate buffers. Nevertheless, the Central Bank will put in measures that will ensure that the banks remain solvent.”
On the subject of Ghana’s galloping inflation, the Governor said, “The inflation forecast shows that inflation will likely peak in the first quarter of 2023 and settle around 25% by the end of 2023. This forecast is conditioned on the continued maintenance of the tight monetary policy stance and the deployment of tools to contain excess liquidity in the economy.”
He noted that there are some risks associated with inflation such as additional pressures from the proposed VAT increase in the exchange rate have to be monitored.
Dr Addison added that “to continue to anchor inflation expectations, the committee, therefore, decided to increase the policy rate by 250 basis points to 27%.”
Kofi Bentil, the vice-president of IMANI Africa has described the decision by the Bank of Ghana (BoG) to halt forex support for imports for some eight items as a bad move, which will badly affect the poor.
The items include rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods.
The move, according to the central bank, is in accordance with the president’s directive, issued in his recent address on the Ghanaian economy, made to the nation on Sunday 30 October 2022.
An electronic message from the Bank of Ghana to banks in the country said: “In accordance with the president’s directive, issued in his recent address to the nation on the Ghanaian economy on Sunday 30 October 2022, the Bank of Ghana will no longer provide FX support for the imports of rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods.”
“Please be advised and act accordingly,” the Bank said.
Reacting to the development on Facebook, Bentil said the policy will force importers to rely on the open market for forex, adding that it will drive up prices of goods.
“Another round of policy incoherence has been unleashed. We will all suffer, especially the poor.
“You support essentials whose price increase will affect the poor. Toothpicks, pasta, fruit juice, bottled water and ceramic tiles are NOT essential. You don’t need to support their imports.
“If you withdraw support. You haven’t reduced demand, you’ve just created shortage, so The importers will buy FOREX from the open market and drive-up FOREX rates. And that will also drive-up prices of these essentials and everyone will suffer especially the poor,” Bentil posted.
According to the PIAC, the Finance Minister’s decision to cap the GSF at $100 million and use excess funds from the Fund for other emergency purposes is putting a strain on the Fund.
The objective of the Ghana Stabilization Fund is to cushion the impact on or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls.
However, PIAC disclosed that the decision by Ken Ofori-Atta to cap the fund at $100 million is taking a heavy toll on the fund.
Speaking to the media on the sidelines of the 2022 Semi-Annual Report on Petroleum Funds, the Chairman of the Public Affairs and Communications Sub-Committee at PIAC, Eric Defor, noted that if the country is hit with an unforeseen situation, there will be resources available to cushion the economy.
He further lamented that “the retention of the current cap of $100 million in the GSF for the year 2022 is not in accordance with the formula stipulated in L.I2381. A proper application of the formula would have returned a figure of US$460,633,074.02The Minister of Finance, in determining the cap on the GSF, should comply with the relevant provisions of L.I 2381.”
“It appears that for the past three years the $100 million cap has remained, and should there be another emergency, there will be no resources available in the fund to support the budget, and this we find a challenge,” he added.
Highlighting the impact of the cap, PIAC revealed that at the end of the first half of 2022, the fund generated only $373 million.
Describing the development as a threat to the economy, the committee, called on parliament to review the Petroleum Revenue Management Act, which gives power to the Minister of Finance to use discretionary powers to set the cap.
A financial analyst, Dr Amos Anim has commended the Bank of Ghana for providing financing to keep the government machinery running.
Dr Amos Anim indicated that the BoG overdraft will go a long to help the country as the government seeks a programme under the International Monetary Fund (IMF).
“It is a fact that, but for the Bank of Ghana (BoG) overdraft to the Ministry of Finance, payments of salaries would have been difficult.
Dr Anim further explained that because government is paying debts, it needs funds to ensure payment of salaries.
In his view, even Members of Parliament would not have been able to receive their salaries but for the overdraft.
“Without BOG overdraft nobody would have received salaries including parliament,” he said in an exclusive interview with 3news.com on Sunday.
“You can imagine what will happen in this country if government workers aren’t paid their salaries.The BoG overdraft has ensured that no chaotic situation happens .Government machinery working smoothly.”
“We are all aware that the execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review,” he further said in a separate write up.
He made these comments in reaction to a press engagement by the Member of Parliament for Bolgatanga Central, Isaac Adongo, who accused the Bank of Ghana for financing government.
“Hon.Adongo is a member of the Finance Committee in Parliament. I don’t expect him to be making this statement. He knows and is aware of the current situation. As a member of the Finance Committee, he is aware of the issues. ”
“Hon. Adongo is aware that without BoG overdraft, he wouldn’t receive salary. ”
“We expect our honourable MPs to be patriotic and support initiatives that will promote the good of the people of Ghana. ”
“ Parliament is in session now. I am very sure the Ministry of Finance at the appropriate time will engage Parliament on the overdraft .”
The Asantehene, Otumfuo Osei Tutu II, has appealed to the Bank of Ghana to take necessary steps to stabilize the forex market.
In a speech read on his behalf at the 19th Ashanti Business Excellence Awards by Sewuahene, Nana Kwaku Sarkodie, the Asantehene expressed worry over the depreciation of the local currency against other foreign trading currencies.
He urged the central bank to implement measures to bring predictability to Ghana`s export and import trade, as well as other international financial transactions.
“I will like to make reference to the unsettling turbulence which has characterized Ghana’s foreign currency market, Since the beginning of the year, there has been an astronomical depreciation of the cedi against Ghana’s major foreign currencies, particularly the US Dollar.
I have no doubt that the Bank of Ghana is doing its best to remedy the situation, but the central bank is doing its best to remedy the situation, but I must urge the central bank to urgently take all the requisite steps within its competence to return the foreign market to stability, in order to bring predictability to Ghana`s export and import trade, as well as other international financial transactions”, he said.
The cedi ended last week with a marginal appreciation, but the cedi has depreciated again to GH¢14.20 to one dollar which is the average quote by the forex bureaus.
According to the Bank of Ghana, however, the local currency is selling at GH¢13.014 on the interbank market. The cedi is also going for ¢15.60 and GH¢13.60 to one pound and one euro respectively.
The free fall of the cedi coupled with the recent economic crisis in the country has triggered calls for immediate measures to be implemented by the government to resolve the situation.
President Akufo Addo in his address on Sunday, October 30, announced some measures the government intends to put in place to address the fall of the cedi and the current economic crisis.
The Bank of Ghana (BoG) has strongly denied claims of collusion with illegal foreign exchange traders (forex) at the Central Business District in Accra to transfer funds offshore.
The Central Bank in a statement on Tuesday, November 1, described the allegations by the Director of Research at the Trades Union Congress (TUC) Dr Kwabena Otoo as “reckless and unfortunate”.
“It has come to the attention of the Bank of Ghana that Dr Kwabena Nyarko Otoo of the Trades Union Congress passed an unfortunate remark about the Central Bank on Newsfile on Joy News TV/Joy FM on Saturday, 29th October 2022.
“Dr. Otoo, on the programme, said there is evidence or growing suspicion that Bank of Ghana is actively collaborating with some operatives at Cowlane in Accra to illegally transfer funds offshore. Bank of Ghana categorically denies the said allegations and also considers them extremely reckless. We would have expected that such strong allegations would have been supported by the requisite evidence, and not left at pure conjecture, mere suspicion or hearsay. This is especially so considering the quarters from which the allegations were made.”
The BoG further advised the general public to completely disregard these comments and be assured that the Central Bank, is focused on price stability, and doing all within its power to reduce the rising general level of prices.
The Bank of Ghana has dismissed claims that it was actively collaborating with some operatives at Cowlane in Accra to illegally transfer funds offshore.
This comes after the Director of Research at the Trades Congress (TUC), Dr. Kwabena Nyarko Otoo had alleged there was ‘evidence or growing suspicion’ of the said activity.
Dr. Otoo made the claims while speaking on the October 29 edition of Newsfile on Joy News TV.
But the Central Bank in a statement sighted by GhanaWeb categorically denied the allegations and also considered them as extremely reckless on the part of Dr. Kwabena Nyarko Otoo.
“We would have expected that such strong allegations would have been supported by the requisite evidence, and not left at pure conjecture, mere suspicion or hearsay. This is especially so considering the quarters from which the allegations were made,” the statement said.
“We advise the general public to completely disregard these comments and be assured that we, as a Central Bank, are focused on our mandate of price stability, and doing all within our power to reduce the rising general level of prices. We are doing this guided by our core values of accountability, professionalism and integrity, and in accordance with law,” the BoG added.
The Bank of Ghana, therefore, urged the public to desist from making such unfounded allegations in the future.
It further assured collaboration with relevant stakeholders including law enforcement agencies to discourage and penalize the activities of illegal foreign exchange operators in the country.
The second Deputy Governor of the Bank of Ghana (BoG) has stated that even though economies around the world will face difficult times, Ghana will overcome its challenges as the right policies are put in place.
Elsie Addo Awadzi citing the International Monetary Fund’s (IMF) prediction that there may be a global recession in 2023 noted that developing countries like Ghana are in a unique position to take advantage of the situation to accelerate economic development.
She was speaking at the 21st annual Chief Executive Officers Conference for Rural and Community Banks in Ho, in the Volta Region.
“Just yesterday, the IMF released its latest numbers on the global economy and the outlook for 2023 is a global recession. The whole world’s economy is in trouble”, she stressed.
She added that the “large unusual threat from the Covid-19 pandemic, the Ukraine-Russia war, from the unprecedented levels of inflation.
“Even in the advanced economies talking about 10%, 11% inflation which used to be a developing country’s phenomenon, today in the US, the EU, the UK are struggling with it and you see interest rates, as a result, rise very high, in their 20s”.
She asserted that the development had resulted in the financing of emerging and developing economies as “almost non-existence”, adding that investors would pick developed economies such as America and Europe for businesses in quest of higher yields.
Mrs Awadzi disclosed that her outfit is working with the Ministry of Finance and other key stakeholders to conclude discussions with the IMF towards a Reform Program that would help transform and restore the country’s economy.
“We at the Bank of Ghana are confident about the outlook for our economy. The current high inflation and Cedi depreciation are temporary and we must avoid speculative behaviour that only works against attaining stability sooner,” she advised.
She also entreated rural and community banks to leverage technology to improve service delivery as they remain essential players in the banking industry, and continue to provide critical financial services to micro, small and medium-sized enterprises and individuals.
She detailed that to enhance operations of the rural and community banks, the Finance Ministry and the Bank of Ghanahad decided to support the upgrade of the ARB Apex Bank’s e-banking platform and the modernization of the management information system of the rural and community banks.
This, she said, forms part of the Financial Sector Development Project aimed at ensuring efficient service delivery to he ever-demanding customers.
“Digitalisation comes along with its own complexities and risks, including cyber security risks, third and fourth party/outsourcing risk, data privacy breaches, technology failure risk, increased AML/CFT risks, and consumer protection risk among others. Needless to say, a lot is required by way of strong governance and risk management systems to help mitigate these risks, as financial institutions seek to exploit the benefits of digitalisation.
RCBs will therefore need to augment their capital base as needed in order to deploy more sophisticated systems and structures in line with the Bank of Ghana’s 2018 Cyber and Information Security Directive. The Directive provides for the adoption of minimum technical, governance, data protection protocols, and transaction monitoring and fraud detection and mitigation tools, to help mitigate key risks from digitisation”, she said.
The October 2022 Bank of Ghana (BoG)Summary of Economic and Financial Data has revealed that Ghana’s public debt stock is now at ¢402.4 billion as of July 2022.
This, according to the central bank, is equivalent to 68% of the Gross Domestic Product and is in sharp contrast to the projected 104.6% of debt to GDP ratio in 2022 by the World Bank.
In dollar terms, the country’s debt dropped marginally to $53.2 billion in July 2022, from $54.4 billion in June 2022.
Based on the data, the nation did not borrow fresh funds from the international market during the period. However, the debt level will go up going forward, follow- ing the $750 million Afrieximbank loan that came in August 2022.
According to the data, the external debt remained largely unchanged at $28 billion, equivalent to 35.8% of GDP.
The domestic debt however has been going up since January 2022 because of the significant bor- rowing by the government in the domestic financial market.
The domestic debt stood at ¢190.3 billion in July 2022, from ¢190.1 billion in June 2022.
Data available shows that the domestic debt began the year at ¢181.9 billion in January 2022 and then went up to ¢185.4 billion in February 2022 and ¢190.1 billion in March 2022. It subse- quently shot up to ¢189.2 in April 2022 and ¢188.5 billion in May 2022.
On the other hand, the financial sector resolution bond fell by ¢100 million to ¢14.4 billion in July 2022. This is equivalent to 2.4% of GDP.
The total public debt stock of the country dropped to ¢388.1 billion in April 2022, from ¢392.1 billion in March 2022. It later went up marginally to ¢389.2 billion in May 2022 and subsequently to ¢393.4 billion in June 2022.
Meanwhile, the World Bankin its latest Africa Pulse Report classi- fied Ghana as a high debt distress country as it projects the nation’s debt to Gross Domestic Product (GDP) of 104.6% by the end of 2022.
According to the report, debt is expected to jump significantly, from 76.6% a year earlier, amid a widened government deficit, mas- sive weakening of the cedi, and rising debt service costs.
This is the highest policy rate increase since 2017.
The rate hike means it will become more expensive to borrow from the banks, a situation that will push the cost of living and doing business in the country further up.
Addressing the media, the Governor of BoG, Dr Ernest Addison, explained that the committee reached the decision in order to check the rising rate of inflation as the country negotiates with the International Monetary Fund (IMF) for an economic programme.
“Inflation remains elevated and the balance of risks is on the upside. Although the forecasts are for monthly inflation to continue to slow down, the risks are on the upside, emanating largely from pass-through effects of the currency depreciation, the recent upward adjustment in utility tariffs, and rising inflation expectations”.
“The Committee remains committed to re-anchoring inflation expectations and returning to a disinflation path,” Dr Addisonadded.
Interest rates surge
The Bank of Ghana also said short-term interest rates on the money market have reflected recent developments, while medium-term to long-term rates have remained relatively behind the yield curve.
For example, while the discount rate on the 91-day instrument has increased to 29.7% in September 2022 from 12.5% in September 2021, the coupon rates on the 7-year, 10-year, 15-year, and 20-year have remained unchanged at 18.1%, 19.8%, 20.0% and 20.2% respectively.
The interbank market weighted average rate has increased to 22.05% in September 2022 from 12.61% in September 2021, consistent with the rise in the policy rate.
Average lending rates of banks have also adjusted upwards to 29.81 per cent in September 2022 from 20.20 per cent recorded in the corresponding period of 2021.
Policy rate gone up by 9.5% since March 2022
Since the Bank of Ghana first increased the policy rate in March 2022, the interest policy rate has gone up by 9.5%.
The Central Bank increased the policy rate by 2.5% on March 25, 2022, to 17%, and subsequently increased it on May 23, 2022, to 19%.
It again adjusted it upwards by 300 basis points to 22% in August 2022.
Dr Ernest Addison, the Governor of the Bank of Ghana (BoG), has said capping fuel prices is a wrong policy.
There have been calls for the government to intervene and cap the prices of fuel to cushion consumers.
But speaking at the 108th MPC press briefing in Accra on Thursday (6 October), Addison said, “Capping fuel prices is not an innovation. In fact, it is a wrong policy. When you have fuel prices rising and you also have a budget deficit problem, who is going to pay for the difference of the cost of fuel?”
“That will create further fiscal subsidies and worsen your fiscal deficit problem that we are all trying to resolve. So on the contrary, we should really be pushing towards full cost recovery to minimize the burden on the budget,” he added.
Oil prices held near three-week highs on Thursday after OPEC+ agreed to tighten global crude supply with a deal to cut production targets by two million barrels per day (bpd), the largest reduction since 2020.
Brent crude futures edged down 16 cents, or 0.2%, to US$93.21 per barrel by 1020 GMT after settling 1.7% up in the previous session.
U.S. West Texas Intermediate (WTI) crude futures lost 14 cents, or 0.2%, to US$87.62 after closing 1.4% up on Wednesday.
The Bank of Ghana has engaged players in the financial space to address possible threats to the sector in order to achieve a sound and safe financial system.
To this end, the Central Bank, says it is committed in ensuring that its financial inclusion agenda is achieved in no time.
Speaking at the maiden edition of the Regulatory Sandbox Engagement Forum, on behalf of the first Deputy Governor of the Bank of Ghana, Head of FinTech and Innovation Office, Kwame Oppong, underscored the importance of such engagements with financial sector players.
“Let me underscore the importance of responsible innovation in this endeavor. Globally, sustainability has taken centre stage in all spheres of human activity. The need to assess the possible negative impact of our innovations on the present and future societies has become more critical than ever”.
“Adoption of responsible innovation presents a unique national advantage with the potential to attract investments into our FinTech ecosystem for the creation of employment and wealth”.
Mr. Oppong also addressed issues of privacy and confidentiality within the fintech space.
“Let me address the fintechs regarding issues of privacy and confidentiality. Bank of Ghana as a regulator of financial service maintains the highest level of confidentiality and secrecy.”
“We would like to assure you that every staff is committed to an oath of secrecy and under no circumstance will third party information be disclosed. A breach of the secrecy requirement attracts serious sanctions including dismissal”, he stressed.
