TIG Post

Tag: Bank of Ghana

  • BoG’s operating loss drops by 28% to GH¢9.49bn in 2024

    BoG’s operating loss drops by 28% to GH¢9.49bn in 2024

    The Bank of Ghana (BoG) has reported an operating loss of GH¢9.49 billion for the 2024 financial year, reflecting a 28.27 percent reduction from the GH¢13.23 billion operating loss recorded in 2023.

    Key drivers of the operating loss include the cost of open market operations, GH¢8.60 billion; revaluation and exchange differences (losses) totaling GH¢3.49 billion; exchange losses of GH¢1.82 billion on the government’s Gold for-Oil (G4O) programme and currency issue expenses of GH¢1.01 billion for 2024, from GH¢0.69 billion in 2023.

    Also, the modification to the choice of accounting treatment of foreign exchange gains and losses resulting from revaluation of the bank’s assets and liabilities in gold, special drawing rights, and foreign securities resulted in the 2024 operating loss. 

    As of 31 December 2024, the Bank had committed seed capital amounting to GH¢44.69 billion towards the G40 programme. In view of the losses sustained, the bank has withdrawn from the program following the Board of Directors’ approval at its meeting held on March 13, 2025.

    Despite the loss, the central bank indicated in a statement that this marks a net gain of GH¢4 billion compared to the previous year’s financials, which recorded a total loss of GH¢9.19 billion.

    The Bank of Ghana’s total assets also grew from GH¢140.41 billion in 2023 to GH¢215.06 billion in 2024, representing a 53.19% increase.

    Summarizing the year’s performance, the Bank of Ghana stated that the 2024 financial year saw improvements in the bank’s financial performance and position.

    This, the bank says, was evidenced in the reported loss for the year of GH¢9.49 billion and the GH¢4.02 billion enhancement in its equity position to close the year at a negative value of GH¢61.32 billion.

    The central bank recorded a negative GH¢65.34 billion equity position in 2023, revealing an improvement of GH¢4.02 billion last year.

    The policy solvency outcome for 2024 is consistent with the view held in 2023 that the Bank will continue to operate efficiently and effectively on a going concern basis and achieve its policy mandates, despite the significant loss recorded at the time. 

    “From a macroeconomic perspective, as macroeconomic conditions continue to improve and inflation declines towards the medium-term target, interest rates will also decline, and as a result, the cost of Open Market Operation will reduce.”

    “A decline in inflation will support exchange rate stabilization. The two major expenditures items cost of open market operations and revaluation losses arising out of exchange rate valuation which have historically constituted over (68.67 percent) of the total operating expenses will reduce and further improve the financial position of the Bank of Ghana,” the Report and Financial Statements 31 December 2024 read.

    A central bank is said to be policy solvent when it is able to generate enough realized income to cover costs associated with the conduct of monetary policy operations.

    The release of the 2024 financial statement in accordance with Section 58(1b) of the Bank of Ghana Act, 2002 (Act 612) as amended, according to the BoG, demonstrates its adherence to statutory requirements and ongoing dedication to transparency, accountability, and sound financial management.

    It added, “The bank is committed to maintaining price and financial stability and creating an enabling environment for businesses and individuals to thrive.”

    The Bank of Ghana posted losses totaling GH¢60.81 billion for the 2022 financial year. This was compared to a profit of GH¢1.23 billion recorded in the 2021 financial year.

    The losses were as a result of the government’s domestic debt restructuring activities, the depreciation of the local currency, and others.

    The BoG’s audited financial statement for 2022 indicated that the total liabilities of the central bank and its subsidiaries exceeded its total assets by GHS54.52 billion.

  • Over-the-counter cash withdrawals in foreign currency still allowed – BoG clarifies

    Over-the-counter cash withdrawals in foreign currency still allowed – BoG clarifies

    The Bank of Ghana (BoG) has clarified that over-the-counter (OTC) cash withdrawals in foreign currency from Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA) are allowed.

    This clarification comes after a board member of the central bank, Isaac Adongo, noted that the central bank is set to introduce a number of measures to quell the magnitude of over-the-counter US dollar withdrawals.

    Isaac Adongo noted that this measure, coming at a time when the cedi is recording a significant amount of appreciation against major foreign currencies, forms part of the bank’s role to regulate the use of the legal tender.

    Speaking in an interview on JoyNews’ PM Express, he said; “If you put your dollars in the bank account, it is okay. We are happy with that; you can only get dollars if indeed you are going to use them for a dollar-denominated transaction.”

    The Member of Parliament of Bolgatanga Central added; “When you request dollars, we’ll provide cedis instead.”

    However, the BoG has noted in a press statement dated May 15 that “the Bank has not contemplated reviewing these existing measures.”

    The central bank has also announced that it has capped the forex purchases for travel outside Ghana by non-FEA and non-FCA account holders at US$10,000 or its equivalent per person per trip.

    “This must be supported by a valid passport, visa, and confirmed travel ticket as indicated in BOG Notice No. BG/GOV/SEC/2014/09
    Cheques and cheque books may continue to be issued on FEA and FCA accounts,” the statement added.

    The Ghana cedi has been recognized by Bloomberg as the world’s best-performing currency, having appreciated nearly 16% against the US dollar since April.

    The average interbank rates used by commercial banks for transactions at the close of business, 14th May, show the US dollar buying at GH₵12.44 and selling at GH₵12.45. The British pound is buying at GH₵16.55 and selling at GH₵16.57. The euro is currently being bought at GH₵13.95 and sold at GH₵13.96.

    Following the appreciation of the cedi, there have been calls by stakeholders for traders to revise the prices of the goods and services to reflect the gains.

  • “As long as I am Governor no revoked banking licenses are wiil be reinstated – Dr. Addison

    “As long as I am Governor no revoked banking licenses are wiil be reinstated – Dr. Addison

    Governor of the Bank of Ghana, Dr. Ernest Addison, has made it clear that the banking licenses that were revoked during the financial sector reforms of 2017–2019 will not be restored as long as he is in office.

    In an interview with JoyNews on January 2, 2025, Dr. Addison responded to calls for the reinstatement of the revoked licenses, declaring, “As long as I am Governor, none of those licenses will be reinstated.”

    His comments addressed inquiries about whether the incoming government might consider reinstating the licenses following appeals from shareholders of the affected banks.

    Dr. Addison emphasized that the license revocations were based on thorough assessments of the banks’ operations, which revealed significant issues, including risky investments and poor management of depositor funds.

    “These shareholders treated depositors’ money as their own, using it to fund personal businesses or invest in brick-and-mortar projects that were not liquid enough to make resources available when depositors needed their funds,” Dr. Addison stated.

    During the financial reforms, the Bank of Ghana revoked the licenses of nine universal banks, 347 microfinance companies, 39 microcredit companies, 23 savings and loans firms, and eight finance houses.

    Some of these companies were merged to form Consolidated Bank Ghana (CBG).

    Dr. Addison emphasized that the failed institutions showed poor management, which broke the fundamental rules of banking.

    “When I give you a banking license, I am giving you permission to take people’s money, not to treat it as your private property,” he added, reiterating that protecting depositors and preserving financial stability are the central bank’s core responsibilities.

    Dr. Addison further noted, “These are not numbers we generated ourselves,” referencing data from Ghana’s Statistical Service to highlight the beneficial effects of the reforms on the financial industry.

    He warned that reinstating the revoked licenses would jeopardize the stability of the industry and criticized efforts to downplay the necessity of the reforms.

    “A banking license is a special instrument, and the responsibilities it comes with must be taken seriously,” he concluded.

  • Bank of Ghana issues new lending rules for financial institutions

    Bank of Ghana issues new lending rules for financial institutions

    The Bank of Ghana has issued the Large Exposures Directive for Banks, Savings and Loans, Finance Houses and Financial Holding Companies.

    The objectives of the directive are to limit the maximum loss that Regulated Financial Institutions (RFIs) can incur in the event of the sudden failure of a counterparty or a group of connected counterparties to a level that does not endanger the RFI’s solvency; Provide direction to RFIs on regulatory requirements in order to eliminate any ambiguities in the interpretation of the rules related to limits on financial exposures; among others.

    Section 92 (2)(a) of Act 930 states that the Bank of Ghana may issue directives to provide for the lending limits on credits extended to insiders and the limitations for advances or credit facilities to a single borrower.

    Section 77 (1) of Act 930 provides that the BoG may, in respect of a prudential limit prescribed under this Act, impose a stricter limit for banks, specialised deposit-taking institutions or financial holding companies or a class of specialised deposit-taking institutions or a particular bank, specialised deposit-taking institution or financial holding company for the period that the Bank of Ghana considers appropriate.

    The effective implementation date of the directive shall be January 1, 2026.

    RFIs are expected to conduct impact assessments prior to the implementation date and where there are non-compliance with the requirements of this directive, submit a credible Board-approved plan acceptable to the BoG by June 30, 2025 detailing the manner RFIs propose to achieve compliance.

    The submitted plan shall include the proposed time frame within which it proposes to become fully compliant with this Directive which shall not, in any event, exceed six (6) months from the required submission date.

    This directive is applicable to all RFIs’ exposures to single counterparties and groups of connected counterparties irrespective of their performance or the quality of any pledged collateral.

  • BoG suspends CBG’s foreign exchange trading licence for a month

    BoG suspends CBG’s foreign exchange trading licence for a month

    The Bank of Ghana (BoG) has announced the suspension of the Foreign Exchange Trading Licence of Consolidated Bank Ghana (CBG), effective from 26th November 2024.

    The suspension, which will last for one month, was issued under section 11 (2) of the Foreign Exchange Act, 2006 (Act 723).

    According to the Bank of Ghana, the suspension was enforced following multiple breaches by CBG of the foreign exchange market regulations, including the Updated Guidelines for Inward Remittance Service for Payment Service Providers, issued in November 2023. The breaches also relate to violations of the Anti-Money Laundering/Combating the Financing of Terrorism & the Proliferation of Weapons of Mass Destruction (AML/CFT&P) Act, as well as the Accountable Institutions Guideline, dated December 2022.

    The licence will be restored after the suspension period if the Bank of Ghana is satisfied that CBG has implemented effective controls to ensure compliance with foreign exchange market regulations.

    For customers, this suspension means limited access to essential foreign exchange services. During this period, CBG will not be able to handle any currency exchange transactions, including buying or selling foreign currencies. This restriction impacts customers who may need to convert their cedi accounts into foreign currencies like the dollar or pound for travel, business, or international payments.

    The Bank of Ghana has entreated all foreign exchange market players to adhere strictly to forex market regulations and guidelines to maintain market stability and compliance.

  • Liquidity risk well-contained in banking industry – Bank of Ghana

    Liquidity risk well-contained in banking industry – Bank of Ghana

    The Bank of Ghana has disclosed that liquidity risks in the banking sector are manageable, contingent on the liquidity of Government of Ghana (GoG) bonds.

    Central Bank stress tests indicate that, with a liquid GoG bonds market, most banks could withstand daily deposit withdrawals between 1.0% and 4.0% over a 30-day period.

    However, if the GoG bond market becomes illiquid, most banks would struggle to sustain withdrawals beyond 1.0% of deposits per day over the same period.

    The banking sector is strong enough to handle possible interest rate hikes.

    A stress test (a kind of financial simulation) indicates that if interest rates were to rise by 16 percentage points over the next year, banks would still remain stable, though their capital adequacy ratio (a key measure of financial health) would drop from 13.85% to 11.57%.

    Interestingly, the report also notes that if interest rates were to fall sharply, the banking sector might actually become more stable. This is because banks’ liabilities (what they owe) would adjust faster than their assets (what they own), which could improve their financial standing. Therefore, a gradual drop in interest rates is expected to make the banking sector even stronger financially.

    Exchange Rate Risk
    The Bank of Ghana observed that exchange rate changes have little effect on the banking sector’s solvency.

    According to test results, a sharp fluctuation in the Ghana cedi’s value against the US dollar would likely have minimal impact on banks’ financial stability. This outcome is attributed to existing restrictions on the Net Open Position (NOP) within the banking sector.

  • Calm down, BoG has enough dollar reserves – Finance Minister to business

    Calm down, BoG has enough dollar reserves – Finance Minister to business

    Finance Minister Dr. Mohammed Amin Adam has provided assurance to businesses and market stakeholders, emphasizing that the Bank of Ghana (BoG) possesses ample dollar reserves to satisfy market needs.

    “We should look at the current reserve position of the Bank of Ghana, and that should give everyone some comfort about its ability to meet market demand,” Dr Amin Adam stated.

    He said this during a press briefing in Washington, D.C., held alongside the Annual IMF and World Bank meetings.

    “I can tell you that the Bank of Ghana has accumulated significant reserves to meet the demand,” he added.

    Bank of Ghana figures show that Ghana’s international reserves climbed to $7.5 billion as of the close of August 2024.

    Expected Inflows

    The finance minister revealed that Ghana anticipates a December inflow of $360 million from the IMF, pending approval of the third program review.

    “That should bring in some foreign exchange,” he noted.

    Additionally, the World Bank is expected to disburse $300 million to Ghana under its Development Policy Operations (DPO) Series, further bolstering the country’s foreign currency reserves.

    “In addition to what the Bank of Ghana already has, these expected inflows should help in stabilising the cedi going forward,” Dr Amin Adam remarked, addressing concerns about recent fluctuations in forex markets.

    The assurance comes at a time when some forex bureaus are reportedly selling the dollar above GHS17, despite data provided to the Bank of Ghana showing transactions under GHS16.

    Pressure on the Cedi: Contributing Factors

    The Ghanaian cedi has faced mounting pressure over the past month, following a period of relative stability.

    Market analysts attribute this volatility to a spike in dollar demand, as businesses prepare to finance imports ahead of the Christmas season.

    Some commercial banks report that businesses are also rushing to restock for next year, fearing a depreciation of the cedi in the coming months.

    Additional market pressures stem from speculation and concerns surrounding the upcoming December elections, which have increased demand for foreign currency, as well as the activities of speculators aiming to capitalise on uncertainties.

    Bank of Ghana’s Role and Measures

    The Bank of Ghana has actively intervened in the market to meet dollar demand, selling foreign currency through its dollar auction program.

    It has specifically targeted Bulk Oil Distribution Firms and conducted weekly auctions for commercial banks to ensure a steady supply.

    Furthermore, the Central Bank has implemented additional measures to stabilise the cedi, which it describes as part of a broader strategy to manage market uncertainty and minimise the negative impact on the currency’s value.

  • BoG’s eCedi grabs innovation in digital currency design award

    BoG’s eCedi grabs innovation in digital currency design award

    The Bank of Ghana (BoG) has won the prestigious Innovation in Digital Currency Design for Financial Inclusion award for its eCedi at the 2024 Payment, Innovation and Technology Week, organized by Currency Research.

    The Central Bank received the award in recognition of the eCedi’s innovative design, which demonstrated key elements such as governance, accessibility (both online and offline), interoperability, and infrastructure—all aimed at enhancing financial inclusion.

    In addition to these technical achievements, the BoG was lauded for its ecosystem engagement approach, which included the involvement of banks and payment service providers during the eCedi pilot.

    The eCedi Hackathon, where the public was invited to present their innovative ideas using the digital currency, and the live trial at the 3iAfrica Summit Digital Village, where participants made real-time payments for goods and services using the eCedi, were also key highlights that contributed to the award.

    The 2024 Payment, Innovation and Technology Week was held in London, United Kingdom, and focused on digital currency trends and Artificial Intelligence (AI) applications for central banks. Currency Research, the organizer, is an independent global leader in premium conferences and consultancy services for central banks, regulators, and payment operators, fostering discussions that drive global change in the realms of cash and payments.

  • Value of mobile money transactions surges by GHC744bn

    Value of mobile money transactions surges by GHC744bn

    The total value of mobile money transactions in Ghana surged by a remarkable GH¢744 billion, hitting GH¢1.775 trillion in the first eight months of 2024, according to data from the Bank of Ghana.

    This figure represents a significant rise compared to the GH¢1.031 trillion recorded during the same period in 2023.

    This impressive growth in mobile money transactions highlights the increasing adoption of digital payments and provides an opportunity to deepen financial inclusion in the country. However, it also raises questions about why the government isn’t generating substantial revenue from the Electronic Transaction Levy (E-Levy).

    The Bank of Ghana’s September 2024 Summary of Economic and Financial Data detailed the month-by-month performance of mobile money transactions. In January 2024, the value of transactions stood at GH¢198.4 billion, slightly dropping to GH¢195.8 billion in February. The downward trend continued in March, with transactions dipping to GH¢181.9 billion.

    However, the tide turned in April 2024, with mobile money transactions jumping to GH¢203.0 billion. The upward momentum continued in May 2024, with a rise to GH¢234.3 billion, although June saw a slight dip to GH¢224.0 billion.

    By July 2024, transactions had surged to GH¢264.9 billion, reaching GH¢273.6 billion in August 2024, marking a consistent increase in the latter months.

    This growth underscores the vital role mobile money plays in Ghana’s economy, but it also raises concerns about maximizing the potential revenue from the sector through initiatives like the E-Levy.

  • Bank of Ghana’s July 2024 report reveals surge in non-performing loans

    Bank of Ghana’s July 2024 report reveals surge in non-performing loans

    The Monetary Policy Report for July from the Bank of Ghana highlights a significant increase in the banking sector’s Non-Performing Loans (NPL) ratio, which rose to 24.2% in June 2024, up from 18.7% in June 2023.

    Even when considering only fully provisioned loans, the NPL ratio rose to 10.8% in June 2024 from 7.8%, indicating a broader issue with non-performing loans across various categories.

    This uptick in the NPL ratio is attributed to a faster increase in the NPL stock compared to the overall loan growth. Specifically, the NPL stock surged by 49.4% to GH¢20.4 billion in June 2024, compared to GH¢13.7 billion the previous year, reflecting declines in both domestic and foreign currency loans.

    The private sector remains the largest contributor to the NPLs, holding a slightly increased share of 95.6% in June 2024, up from 95.5% a year prior. Conversely, the public sector’s share fell to 4.4% from 4.5%.

    The agriculture, forestry, and fishing sector experienced the highest NPL ratio at 56.4%, up from 30.0% a year ago. This was followed by the transportation, storage, and communication sector, which saw its NPL ratio rise to 49.1% from 22.1%.

    The construction sector’s NPL ratio increased to 36.8% from 32.8%, while the electricity, water, and gas sector’s ratio grew to 20.6% from 7.8%. The commerce and finance sector’s NPL ratio remained stable at 20.2%.

    The mining and quarrying sector had the lowest NPL ratio at 13.7% in June 2024, up slightly from 12.7% the previous year.

  • Why BoG vows to maintain tight monetary policy

    Why BoG vows to maintain tight monetary policy

    The Bank of Ghana has affirmed its dedication to sustaining a stringent monetary policy until inflation shows a consistent downward trend.

    In a statement to the International Monetary Fund, the Central Bank emphasized that its monetary policy is focused on returning inflation to its medium-term target of 8% ± 2%.

    “Our policy decisions will continue to be data-dependent to ensure a fast-paced and orderly disinflation path towards the inflation target; the BoG stands ready to adjust the policy stance to ensure inflation evolves as envisaged under our monetary policy consultation clause (TMU Section II)”.

    “We are committed to continue absorbing excess liquidity and making sure our policy rate is fully transmitted to the market. In doing so, we will review the increased reliance on reserve requirements and the new tiering framework to ensure they deliver on their objectives”, it further explained.

    The Central Bank stated that it aims to strengthen its inflation targeting framework by upgrading its Forecast and Policy Analysis System (FPAS), improving macroeconomic data collection, including the BoG inflation expectations survey, enhancing analytical capabilities, and refining its monetary policy communication.

    The Bank also plans to restore official international reserves to a minimum of three months of import cover by the end of the program.

    “As the difficulties affecting the cocoa sector hamper its ability to accumulate reserves and that payments to IPPs [Independent Power Producers] are larger than previously expected, coupled with the uncertainty about the timing of the debt restructuring, we are also requesting a modification of the QPC to add an asymmetric adjustor on debt service on instruments arising from the restructuring of bondholders’ and commercial creditor’s claims”.

    In light of the reserve accumulation goal and existing challenges, the Bank will stick to a gross foreign exchange intervention budget.

    In July 2024, the Monetary Policy Committee of the Bank of Ghana maintained the policy rate at 29.0% for the third consecutive time.

  • Bank of Ghana unveils unified foreign exchange platform

    Bank of Ghana unveils unified foreign exchange platform

    The Bank of Ghana (BoG) has introduced a centralized foreign exchange trading platform.

    In a statement issued by Sandra Thompson, Secretary to the Bank of Ghana, it was clarified that this initiative supports the bank’s objective of preserving the integrity and advancement of the financial system.

    Effective August 1, 2024, all licensed Foreign Exchange Bureaux must utilize this platform for handling foreign currency transactions.

    “This initiative marks a milestone in the Bank’s efforts to ensure safe and sound operations of the foreign exchange business. The platform will improve oversight for Directors and Management of bureaux and enhance the Bank’s monitoring and supervision of their operations in compliance with the Foreign Exchange Act, 2006 (Act 723) and the Anti-Money Laundering Act, (Act 1044), as amended, and other relevant notices and enactments,” the BoG stated.

    The statement emphasised that all foreign currency transactions must be conducted through Bank of Ghana licensed dealers, including licensed Foreign Exchange Bureaux, and must be carried out on the new trading platform.

    Read the statement below:

  • Cedi falls 19.6% against the US Dollar as of July 2024 – BoG

    Cedi falls 19.6% against the US Dollar as of July 2024 – BoG

    As of July 2024, the Ghana cedi has experienced a depreciation of approximately 19.6% relative to the US dollar on the interbank forex market, as reported by the Bank of Ghana (BoG).

    This is a slightly smaller decline compared to the 21% drop observed in the retail market.

    The Bank of Ghana’s July 2024 Summary of Financial and Economic Data highlights that the cedi’s value fell by 7.7% against the dollar in March 2024, followed by a 10.5% decrease in April.

    The cedi then continued its downward trend with a 15.9% depreciation in June and an 18.6% drop in July.

    On the retail market, the cedi is currently trading at an average of GH¢15.60 per dollar, whereas the interbank rate stands at GH¢14.78 per dollar.

    In relation to the British pound, the cedi has depreciated by 20.8%, with the current exchange rate at GH¢19.10. It has also fallen by 18.4% against the euro, with a rate of GH¢16.09.

    Recently, the cedi has shown signs of stabilization against the dollar, buoyed by increased corporate demand and market anticipation of a potential rate cut by the US Federal Reserve, which has contributed to a weakening of the American dollar.

  • 29% policy rate maintained by BoG following 119th meeting

    29% policy rate maintained by BoG following 119th meeting

    The Monetary Policy Committee of the Bank of Ghana has opted to hold the policy rate steady at 29% after its 119th regular meeting.

    This decision represents the third time in a row that the BoG has kept the policy rate at 29% this year.

    Central Bank Governor Dr. Ernest Addison pointed out that inflation risks are skewed towards the upward direction.

    “On domestic price developments, there is some uncertainty regarding the inflation path for the year, given recent exchange rate pressures, upward adjustment in utility tariffs and increases in ex-pump fuel prices,” the governor said.

    “The above developments have resulted in a slightly elevated inflation profile for the year. Even though inflation is expected to remain within the target year band, the risks are tilted slightly on the upside. This will require maintaining the strong monetary policy stance supported by strong fiscal consiolidation efforts including remaining vigilant to ensure that the end year inflation objectives are achieved,” he explained.

  • BoG to keep monetary policy rate at 29%

    BoG to keep monetary policy rate at 29%

    For the third straight time, the Bank of Ghana (BoG) has decided to keep the Monetary Policy Rate at 29 percent.

    The Monetary Policy Rate is the key interest rate set by the Central Bank, determining the rate at which commercial banks borrow from it. This rate is crucial for influencing short-term interest rates and managing the money supply in the economy.

    Consequently, the reference rate for commercial bank lending remains unchanged at 29 percent.

    Following the 119th committee meeting on Friday, BoG Governor Dr. Ernest Addison announced the decision to maintain the rate.

    He explained that while core inflation measures and expectations are trending downward, caution is warranted due to ongoing uncertainties in macroeconomic indicators.

    “”GDP growth outturn for the first quarter of 2024 was stronger than expected. Economic activity remained resilient in the context of a generally tight policy stance. This is shown by the latest GDP data released by the Ghana Statistical Service and the subsequent upward revision of growth estimates. Similarly, high-frequency indicators of economic activity, which are more recent, suggest stronger growth outcomes.

    “Consumer and business confidence sentiments softened, driven by the rapid exchange rate depreciation observed in May and high food prices in June 2024. As the exchange rate stabilises and macroeconomic stability takes hold, the reversal of these sentiments will further help support economic activity.”

    “Even though inflation is expected to remain within the target year path, the risks are tilted slightly on the upside. This will require maintaining a strong monetary policy stance supported by strong fiscal consolidation efforts, including remaining vigilant to ensure that the end-year inflation objectives are achieved.

    “Given these considerations, the Committee decided to maintain the policy rate at 29 percent,” he stated.

  • BoG vindicated in UniCredit licence revocation by Supreme Court

    BoG vindicated in UniCredit licence revocation by Supreme Court

    The Supreme Court of Ghana has upheld the Bank of Ghana‘s (BoG) decision to revoke UniCredit Ghana Limited’s operating license, reversing an earlier appellate court ruling.

    The Supreme Court, in a unanimous verdict, supported the High Court’s earlier decision, confirming that the BoG acted within its legal authority. The panel, consisting of Chief Justice Gertrude Araba Esaaba Sackey Torkornoo and Justices Mariama Owusu, Prof. Henrietta Joy Abena Nyarko Mensa-Bonsu, Ernest Yao Gaewu, and Yaw Darko Asare, agreed that the BoG’s actions were justified in declaring UniCredit insolvent and revoking its license.

    Background on the Case

    The BoG declared UniCredit insolvent on August 16, 2019, due to its failure to meet financial requirements set under section 123 of the Banks and Specialised Deposit Taking Institutions Act of 2016 (Act 930). This prompted Hoda Holdings Ltd., the major shareholder in UniCredit, to challenge the decision in court, claiming that UniCredit had not received a fair hearing.

    The High Court, led by Justice Gifty Agyei Addo, ruled in favor of the BoG on March 18, 2021. The court concluded that the BoG had given UniCredit sufficient opportunity to address its financial shortcomings before proceeding with the license revocation, and that this action was lawful under Act 930.

    Appeal and Supreme Court Judgment

    Dissatisfied with this outcome, Hoda Holdings appealed to the Court of Appeal, which on July 7, 2022, reversed the High Court’s decision. The appellate court found that the BoG had not fully complied with the procedural requirements specified in section 16(3&4) of Act 930, thereby denying UniCredit a fair hearing. This ruling favored Hoda Holdings.

    The BoG contested this decision, leading to the Supreme Court’s involvement. The highest court’s ruling reinstated the High Court’s judgment, affirming that the BoG had adhered to proper procedures and had acted within its rights. Chief Justice Sackey Torkornoo stated that the BoG had given UniCredit ample chances to rectify its issues, and the license revocation was carried out in accordance with legal standards.

    Impact and Reactions

    This decision reinforces the BoG’s role in regulating and stabilizing the financial sector. The ruling validates the BoG’s enforcement of banking regulations and underscores its commitment to maintaining financial stability in Ghana.

    The BoG expressed contentment with the outcome, emphasizing its commitment to regulatory adherence. Meanwhile, Hoda Holdings acknowledged the Supreme Court’s decision but expressed their ongoing concerns regarding the case.

    The verdict concludes a lengthy legal process and sets a significant precedent for the interpretation and enforcement of banking regulations in Ghana, highlighting the importance of regulatory compliance and judicial oversight in financial matters.

  • Second phase of Minority’s #OccupyBoGProtest to take off on July 30

    Second phase of Minority’s #OccupyBoGProtest to take off on July 30

    The Minority caucus in Parliament has formally informed the Ghana Police Service of their plans to stage a protest demanding the resignation of the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, and his two deputies.

    Mahama Ayariga, Member of Parliament for Bawku Central, sent a letter to the Greater Accra Regional Police command outlining their grievances and intentions.

    The protest is scheduled for Tuesday, July 30, 2024, from 8 am to 6 pm in Accra, Greater Accra Region.

    Starting at Obra Spot in Kwame Nkrumah Circle, the demonstrators will march through Adabraka to Kingsway and culminate at the Bank of Ghana headquarters.

    The protest is centered around concerns regarding the ongoing construction of the BoG’s new headquarters in North Ridge.

    “The Governor of the Central Bank and his board continue to engage in wasteful spending on the new Bank of Ghana Corporate head office building and refuse to answer questions on the latest cost of the building which, we are told, has now further escalated to over Two Hundred and Seventy Million United States Dollars (USD$270 million) from its original estimated cost of USD81,882,640.00.

    “The Governor again has embarked on the construction of a new house for the Governor himself at a speculated cost of Forty Million United States Dollars (USD$40million) and has refused to disclose to us the actual cost when the Minority wrote to him requesting the information on the cost of the Governor’s house under construction.”

    The caucus members organized a comparable protest on October 3, 2023, in response to the Bank’s reported GH¢60.81 billion loss in the 2022 fiscal year.

    “Governor Addison has acted illegally in printing money for government without recourse to Parliament and similarly wrote off about GH¢48.4 billion of government debt. After the BoG recorded a colossal loss of over GH¢60.8 billion and negative equity of over GH¢55 billion we concluded that the bank has become insolvent. This is now confirmed by the BoG request for recapitalization by Central Government,” the Minority’s letter added.

  • BoG board members paid over GHC5m as allowance in 2022 – Report

    BoG board members paid over GHC5m as allowance in 2022 – Report

    Each of the 10 board members of the Bank of Ghana (BoG) received GH¢510,000 in allowances last two years, as reported in the central bank’s 2022 audited annual report and financial statement.

    This occurred despite the board presiding over a GH¢60 billion unprecedented loss.

    According to the report, “fees and allowances paid to non-executive directors during the year amounted to GH¢5.10 million.”

    In the year when the central bank recorded its worst performance in recent history, each board member received an average of GH¢42,500 monthly, totaling GHC510,000 annually—a 60.9% increase compared to 2021.

    In addition to the governor and his two deputies, these 10 board members constitute the governing board of the bank, as mandated by the Bank of Ghana Act, 2002 (Act 612).

    The Board is entrusted with formulating policies critical to achieving the bank’s objectives and provides strategic direction on its operations.

    It convenes at least once every two months to deliberate on matters within its statutory responsibilities and those referred to it.

    But who were these board members?

    The Bank of Ghana (BoG) released its full-year 2022 audited financial statements on July 28, 2023, which drew widespread criticism due to the substantial loss reported.

    According to the financial statements, the bank recorded a total loss of GH¢60 billion.

    This figure has unfortunately been subject to politicization, with GH¢53.1 billion of the losses attributed directly to the government’s domestic debt restructuring exercises (phase 1 and II), as clarified by the BoG.

    In terms of compensation, Ghana’s non-executive directors at the central bank receive some of the highest emoluments on the continent.

    On average, they are compensated more favorably than their counterparts in South Africa, Botswana, Mauritius, and Rwanda.

    Annual emoluments received by non-executive board members in Ghana, South Africa, Mauritius, Botswana, and Rwanda in 2022 exemplify this trend.

    In Kenya, Uganda, and Zambia, where the compensations of executive directors are combined with those of non-executive directors, Ghana’s figures remain competitive. However, Nigeria and Sierra Leone compensate their central bank directors at significantly higher rates.

    The Fourth Estate converted the GH¢5.1 million received by the BoG’s non-executive board members into U.S. dollars for seamless comparison with other African countries. Using the average exchange rate of ¢8.9191 per dollar in 2022, they facilitated a clear understanding of these comparisons.

    Before 2020, the BoG’s annual reports typically consolidated the emoluments of non-executive and executive directors, making it challenging to ascertain the specific amounts paid to non-executive directors.

    However, the 2020 annual report disclosed that the board of directors received GH¢1.96 million in 2019. Since then, the emoluments of non-executive directors have steadily increased. By 2020, their fees and allowances had risen by GH¢670,000, and during the COVID-19 pandemic in 2021, these figures escalated from GH¢2.63 million to GH¢3.17 million.

    By 2022, amid significant losses incurred by the bank, these emoluments surged to GH¢5.10 million. Concurrently, the BoG’s top management, including the Governor, his deputies, and senior executives, received GH¢16.79 million in short-term employee benefits. This marked a nearly quadruple increase from the GH¢4.49 million recorded in 2017.

    During this period of rising fees and allowances, particularly in 2021, Finance Minister Ken Ofori-Atta urged Ghanaians to bear the burden and collaborate to revive the economy.

    In April 2022, the government implemented a 30% salary reduction for all its top appointees as part of austerity measures to address the country’s financial challenges.

    Additionally, stringent measures were imposed, including restrictions on foreign travel except for essential statutory purposes, a 50% decrease in expenditures related to meetings and conferences, and a halving of fuel coupon allocations.

    “We have decided also to continue with the policy of a 30 % cut in the salaries of political office holders including the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and SOE appointees in 2023,” he said.

    During his October address on the state of the economy, President Nana Akufo-Addo reiterated this policy, stating, “We have also decided to maintain a 30% salary cut for political office holders, including the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and SOE appointees in 2023.”

    Members of the Council of State also voluntarily agreed to reduce their monthly allowances by 20% until the year’s end in response to the country’s economic challenges.

    However, it seems that these austerity measures did not extend to the central bank.

    The Bank of Ghana has faced intense scrutiny since revealing its significant financial loss. Since August 2023, the Minority in Parliament has demanded the resignation of Governor Dr. Ernest Addison and his two deputies, blaming them for what they call financial mismanagement.

    “We are resolved to embark on popular action to occupy the Central Bank and drive out the team of inept, callous, and criminal mis-managers of the finances of this country and save the Bank of Ghana. The March to Ensure Accountability will begin in 21 days if the Governor of the Bank of Ghana does not do the needful and pack bag and baggage out of that sacred institution that he has so desecrated. Dr Ernest Addison Must Go! There has to be an end to impunity and it is now,” the Minority Leader, Dr Cassiel Ato Forson, said.

    When the Governor and his deputies refused to resign, the Minority staged a demonstration. However, Dr. Addison reportedly informed Central Banking, an international business website, that he had no plans to resign. He characterized the Minority’s protests as “completely unnecessary.”

    “The Minority in Parliament has numerous channels in civilized societies to voice their grievances, not through street demonstrations like hooligans,” Dr. Addison remarked.

    Nevertheless, Bright Simons, Honorary Vice President of IMANI Africa, described the scale of the chaos caused by Ghana’s central bank managers as “the scope of the mess” created by the managers of Ghana’s apex bank as “eye-popping from a historical point of view.”

  • Crisis: Bank of Ghana goes in bankruptcy

    Crisis: Bank of Ghana goes in bankruptcy

    The Minority in Parliament has accused the management of the Bank of Ghana (BoG) of engaging in illegal activities.

    The caucus claims the said activities relate to the writing-off of around GH¢48 billion in government debt.

    The Minority claims that the situation has led to the insolvency of the central bank.

    Dr. Cassiel Ato Forson, the Minority Leader, levelled the allegations while concluding a debate on the State of the Nation Address delivered by the president recently.

    “The Bank of Ghana is now bankrupt and exists merely in name. In 2022, the Central Bank recorded a colossal loss of over GH¢60.8 billion and a negative equity of over GH¢55 billion.”

    “The Governor of the Bank of Ghana and his two deputies illegally and excessively printed money to finance the government’s over-bloated expenditures.”

    “Mr Speaker, the Governor of the Bank of Ghana and his two deputies, without recourse to Parliament, wrote off about GH¢48.4 billion of government debt.”

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

  • Interest rates remains unchanged despite 19.47% oversubscription in treasury bills

    Interest rates remains unchanged despite 19.47% oversubscription in treasury bills

    Government witnessed a 19.4% oversubscription in its treasury bills auction, indicating a renewed demand for short-term instruments.

    As per the Bank of Ghana’s auction outcomes, interest rates have maintained stability.

    The auction generated GH¢5.256 billion from the sale of these brief financial instruments.

    The majority of the tenders were for the 91-day T-bills, with GH¢3.39 billion—representing 64.67% of the total—being offered.

    All offers were accepted for the 91-day T-bills.

    Similarly, GH¢1.689 billion was collected from the 182-day bills, with all bids received being approved.

    Regarding the 364-day bills, GH¢167.05 million worth of bids were submitted, all of which were accepted.

    Meanwhile, interest rates remained constant throughout the yield curve.

    The yield on the 91-day bill stayed at 25.03%.

    The yield on the 182-day bill was recorded at 26.93%, slightly higher than the previous week’s 26.91%.

    As for the 364-day bill, the interest rate stood at 27.92%, a marginal increase from the previous week’s 27.90%.

    SECURITIESBIDS TENDERED (GH¢)BIDS ACCEPTED (GH¢)
    91 Day Bill3.399bn3.399bn
    182 Day Bill1.689bn1.689bn
    364 Day Bill167.05mn167.05mn
    TotalGH¢5.256bn
    TargetGH¢4.40bn 
  • BoG allocated GHS675.4m for currency printing in 2023 – Report

    BoG allocated GHS675.4m for currency printing in 2023 – Report

    The Bank of Ghana allocated GH¢675.4 million for currency printing in 2023, marking a 107.4% surge compared to the GH¢325.64 million expenditure in 2022, as detailed in its 2023 Annual Report and Financial Statement.

    Additionally, the report highlighted that the Central Bank expended GH¢7.32 million on other currency management operations in 2023, compared to GH¢6.54 million in 2022.

    Agency fees amounted to GH¢6.136 million in 2023, up from GH¢4.75 million in the previous year, resulting in a total currency issuance expense of GH¢688.87 million in 2023.

    GH¢44.55bn were in circulation in 2023

    In total, GH¢44.55 billion circulated in 2023, contrasting with approximately GH¢36.07 billion in 2022.

    Regarding currency deposits in various denominations, GH¢29.7 billion were in cedis, GH¢16.9 billion in dollars, GH¢988 million in pounds, and GH¢4.68 billion in euros. Other currencies totaled around GH¢25.45 million.

    As for specific notes in circulation, GH¢12.32 billion worth of GH¢200 notes circulated in 2023, compared to GH¢9.87 billion in the previous year.

    For the GH¢100 note, GH¢14.57 billion circulated in 2023, compared to GH¢8.69 billion in 2022.

    In 2023, the circulation of GH¢50, GH¢20, and GH¢10 notes amounted to GH¢8.06 billion, GH¢5.06 billion, and GH¢2.46 billion, respectively.

    On the other hand, GH¢1.09 billion, GH¢31.6 million, and GH¢11.27 million worth of GH¢5, GH¢2, and GH¢1 notes were in circulation in 2023.

    Regarding coins, GH¢231.02 million worth of GH¢2 coins circulated in 2023, compared to GH¢207.49 million worth of GH¢1 coins.

    As for the 50 pesewa, 20 pesewa, and 10 pesewa coins, GH¢253.56 million, GH¢120.99 million, and GH¢54.64 million were in circulation last year.

  • Private sector contributions to SSNIT reach an all-time high of GH¢395.34 million in March 2024

    Private sector contributions to SSNIT reach an all-time high of GH¢395.34 million in March 2024

    Private sector contributions to the Social Security and National Insurance Trust (SSNIT) in March 2024 hit an all-time peak of GH¢395.34 million, as reported in the Bank of Ghana’s Summary of Economic and Financial Data for May 2024.

    This marked a rise from the GH¢334.18 million recorded in November 2023.

    The data from the Bank of Ghana (BOG) indicates a positive trend in private sector contributions, with expectations for continued growth throughout the remainder of the year.

    This development gains significance in light of recent controversies surrounding the sale of SSNIT’s hotels to Agric Minister Bryan Acheampong.

  • BOG demands list of all persons, institutions interested in acquiring shares of SG Ghana

    BOG demands list of all persons, institutions interested in acquiring shares of SG Ghana

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has announced that the central bank will require a comprehensive list of individuals and organizations interested in acquiring shares of Societe Generale (SG) Ghana.

    Initial reports indicated that SG Group in France, which owns 60.22% of SG Ghana, is planning to sell its shares and leave the country as part of a strategic move.

    During a press briefing to announce the policy rate, Dr. Addison responded to inquiries on the matter, stating that the Bank of Ghana has formally informed SG Bank through its subsidiary in Cote D’Ivoire to provide his office with all forthcoming plans regarding share sales.

    “I have engaged with their Cote D’Ivoire office and emphasized our desire not to be caught off guard. While we’ve heard rumblings, we want a comprehensive list of potential share buyers. I’ve communicated these concerns to their Cote D’Ivoire office, and we anticipate a response soon,” he remarked.

    He clarified that the Bank of Ghana has not received any official communication from SG and is thus taking proactive measures by reaching out to the bank.

    “We haven’t received official confirmation from SG, either from their headquarters or their Accra office. Our aim is to ascertain the list of potential share purchasers, and we’ve expressed this concern. Hopefully, we’ll receive a response from the group soon,” he reiterated.

    Background information reveals that Hakim Ouzzani, the Managing Director of SG Ghana, previously stated that the news of the bank exiting the Ghanaian market did not originate from the Group Head Office in France. This statement was made during the Bank’s Annual General Meeting in Accra, after which Ouzzani declined further questions.

    In a report by Fitch Ratings, it was projected that SG’s departure from Africa would create opportunities for pan-African banks to expand, either organically or through mergers and acquisitions. Despite potential short-term challenges, this move was expected to foster competition and benefit local banking sectors.

    SG has recently announced the sale of Societe Generale Marocaine de Banques (SGMB) and its subsidiaries to the Moroccan conglomerate Saham Group, following a trend of African divestments by French banks in recent years.

    The exit of highly rated foreign shareholders, such as SG, can pose challenges for divested subsidiaries in terms of credit ratings and access to global financial systems. However, this shift also presents opportunities for local and regional banks in Africa to grow and compete with established institutions.

    As French banks refocus on more mature markets in Europe, their reduced presence in African banking is viewed as slightly positive, aligning with their risk strategies and regulatory environments.

  • Black market dealer reveals deep secret affecting cedi depreciation

    Black market dealer reveals deep secret affecting cedi depreciation

    An illegal foreign exchange dealer operating in the black market under the pseudonym Abdullai Mohammed in a recent interview on Adom TV’s Big Agenda show pointed fingers at certain banks in the country for the consistent depreciation of the cedi against the dollar.

    According to Mohammed, some banks are dissatisfied with the approved rates set by the Bank of Ghana (BoG) due to their reduced profits.

    Allegedly, these banks collaborate with black market dealers to inflate profit margins, contributing to the currency’s devaluation.

    Expressing concern over the lack of oversight, Mohammed highlighted the prevalence of dollar shortages in banks juxtaposed with ample availability in the black market.

    He claimed that many bank employees maintain relationships with black market agents to sell dollars for additional profit.

    The Ghana Federation of Traders, comprising eight trade groups, has joined the discourse by urging the government to slash the exchange rate from GH¢15 to GH¢10.

    They’ve warned of potential protests if corrective measures are not promptly implemented, citing the adverse effects of currency depreciation on their businesses.

    Contrary to expectations, Mohammed revealed that black market dealers are also adversely affected and advocate for measures to stabilize the cedi.

    He proposed that reducing the rates would deter banks from utilizing black market agents, encouraging more people to engage in forex trading through formal banking channels.

  • Development Bank Ghana, BoG allocate $100m to MSMEs

    Development Bank Ghana, BoG allocate $100m to MSMEs

    The Bank of Ghana (BoG) and Development Bank Ghana (DBG), in partnership with digital partner Proxtera and with support from the Monetary Authority of Singapore (MAS), have announced an ambitious target of US$100 million to be funneled into the Ghanaian MSME ecosystem through the Ghana Integrated Financial Eco-system (GIFE).

    This announcement was made during the ongoing sessions of the 3i Africa Summit, marked by a signing ceremony between DBG and Proxtera.

    The collaboration aims to accelerate the distribution of up to 1.83 billion Ghanaian Cedis through the fully digital infrastructure established by the GIFE program.

    GIFE, which was launched at the 2022 edition of the Singapore Fintech Festival and operationalized in the first half of 2023 with the Consolidated Bank of Ghana as its pilot financial institution partner, is a digital platform designed to empower MSMEs.

    It offers a comprehensive suite of services, including financial literacy, the creation of trusted credentials using the global Universal Trusted Credentials framework, access to working capital, and facilitation of cross-border trade with Asia and the ASEAN region.

    Saurav Bhattacharyya, CEO of Proxtera, expressed pride in supporting GIFE as a founding partner, highlighting Proxtera’s commitment to leveraging trusted credentials and digital infrastructure to propel Ghanaian MSMEs onto the global stage of digital cross-border trade and financial networks.

    K Duker, CEO of DBG, hailed the partnership as a pivotal moment in DBG’s mission to provide sustainable finance solutions to Ghanaian businesses, particularly MSMEs.

    He emphasized the critical role of MSMEs in Ghana’s economy and expressed optimism that the GIFE program would catalyze their growth and contribute to the country’s economic resilience and prosperity.

    Dr. Ernest K.Y. Addison, Governor of the Bank of Ghana, reiterated the central bank’s commitment to exploring innovative financing models and enhancing MSME contributions to economic growth, in alignment with the broader economic transformation goals of the Ghanaian government.

    Mr. Sopnendu Mohanty, Chief FinTech Officer at MAS, emphasized the importance of the GIFE program in fostering collaboration between central banks and emerging markets, noting its potential to revolutionize financial inclusion through smarter data-driven support mechanisms tailored to the needs of MSMEs and financial institutions.

    ”As the GIFE programme gathers momentum, stakeholders anticipate significant strides in enhancing the resilience, competitiveness, and international reach of Ghanaian MSMEs, positioning them for sustained growth and prosperity in the global marketplace

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

    BoG spent GHS6bn on its employees in 6 years – Report 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Bank of Ghana debunks fake reports on introducing 1% cybersecurity levy

    Bank of Ghana debunks fake reports on introducing 1% cybersecurity levy

    The Bank of Ghana (BoG) has rebutted rumors circulating on social media alleging its intention to implement a one percent cybersecurity levy, purportedly in response to increased cyber threats.

    The central bank clarified that these reports are unfounded and urged the public to disregard them.

    In the meantime, Dr. Ernest Addison, the Governor of the Bank of Ghana, emphasized the institution’s readiness to take stern action against entities found in violation of regulations.

    Asserting its regulatory role, Dr. Addison stated that the Bank of Ghana is dedicated to maintaining a vigilant approach in overseeing all financial institutions operating in Ghana.

    Despite this commitment, Dr. Addison noted persistent breaches by banks, which undermine efforts to uphold the safety and integrity of the banking system. These breaches encompass various forms of financial misconduct, such as money laundering, fraud, terrorist financing, corruption, market manipulation, insider dealings, and cybercrime.

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

    “Let me note that, to protect depositors, while ensuring the stability and soundness of the banking system, the Bank of Ghana will continue to be vigilant to ensure that banks comply with regulatory requirements and guidelines to build trust and confidence in our financial institutions,” he said at an event for Name change Galla Dinner for FBN Bank, in Accra on Thursday May 2.

    He added that the operations and services within the banking sector are swiftly changing, propelled by advancements in financial technology.

    According to him, the rise of fintech companies in the financial landscape, along with their introduction of creative financial products and services, has revitalized the integration and spread of technology across all aspects of banking operations. This, in turn, has bolstered efforts towards achieving financial inclusion goals.

  • BOG governor pledges commitment to safeguard financial institutions against financial crime

    BOG governor pledges commitment to safeguard financial institutions against financial crime

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has reiterated the central bank’s commitment to maintaining a vigilant stance in overseeing all financial institutions in Ghana.

    Despite this assurance, Dr. Addison highlighted ongoing breaches of guidelines aimed at ensuring the safety and integrity of the banking system, including issues like money laundering, fraud, terrorist financing, corruption, market manipulation, insider dealings, and cybercrime.

    Dr. Addison noted that the BoG has recently imposed sanctions and penalties on several banks due to such breaches, emphasizing the need to protect depositors and ensure the stability of the banking sector.

    Speaking at an event in Accra, he emphasized the importance of regulatory compliance to foster trust and confidence in financial institutions.

    “Let me note that, to protect depositors, while ensuring the stability and soundness of the banking system, the Bank of Ghana will continue to be vigilant to ensure that banks comply with regulatory requirements and guidelines to build trust and confidence in our financial institutions,” he said at an event for Name change Galla Dinner for FBN Bank, in Accra on Thursday May 2.

    Furthermore, Dr. Addison acknowledged the rapid evolution of the banking sector, driven by advancements in financial technology (fintech).

    He praised fintechs for delivering innovative products and services, which have contributed to the expansion of financial inclusion and the adoption of technology across banking operations.

    See statement below:

  • IMF urged to maintain zero-interest-rate loans for Ghana, other low-income countries

    IMF urged to maintain zero-interest-rate loans for Ghana, other low-income countries

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has urged the International Monetary Fund (IMF) to maintain its zero-interest-rate loans for Ghana and other low-income countries (LICs) via the Poverty Reduction and Growth Trust (PRGT).

    During the 2024 African Consultative Group (ACG) meeting at the ongoing IMF/World Bank Group Spring Meetings in Washington, US, Dr. Addison stressed the necessity of continuing concessional financing for LICs.

    He emphasized that such financing would complement monetary policies, aiding in curbing inflationary pressures and bolstering economic recovery and resilience in low-income nations.

    Furthermore, Dr. Addison advocated for replenishing the Catastrophe Containment and Relief (CCRT) resources to provide grant support to vulnerable members in regions prone to shocks.

    He reiterated the call for improvements to the G20 Common Framework and utilizing the Global Sovereign Debt Roundtable (GSDR) to facilitate transparent and fair debt resolution, including debt cancellation for the most vulnerable members.

    Dr. Addison underscored the importance of better coordination between the IMF’s LICs facilities review and the World Bank’s IDA21 replenishment efforts to offer comprehensive support to LICs.

    Encouraging African governments to boost domestic financing, Dr. Addison highlighted its necessity amid ongoing economic recovery and resilience efforts on the continent.

    He stressed that while African countries confront multifaceted challenges and a sluggish post-pandemic recovery, relying solely on domestic adjustment policies without adequate financing would yield limited outcomes.

  • Bank of Ghana committed to IMF program amid election challenges

    Bank of Ghana committed to IMF program amid election challenges


    The Bank of Ghana reaffirms its dedication to executing a fruitful IMF-supported program, especially amidst an election period, without encountering setbacks.

    Dr. Ernest Addison, the Governor, acknowledged Ghana’s historical challenges in effectively implementing an IMF-ECF program during election years. However, both the government and the central bank are determined to alter this pattern.

    During a joint press conference involving the IMF, the finance ministry, and the BoG on April 13, 2024, Dr. Addison emphasized this commitment.

    “We recognize the importance of continued macroeconomic stability and an early return to the capital markets, and we will remain committed to ensure that programme implementation stays firm.”

    Across Ghana’s history, election years have typically seen elevated spending as political parties vie for electoral success.

    However, this increased expenditure has notably affected the economy, leading to a downturn, particularly following the 2020 general election.

    Meanwhile, Minister of Finance, Dr. Amin Adam, has provided assurance that despite the current election year, the government remains committed to adhering to the International Monetary Fund’s Post-COVID-19 Programme for Economic Growth (PC-PEG) and the World Bank-supported Development Policy Operations.

  • I never called NDC MPs hooligans – BoG Governor

    I never called NDC MPs hooligans – BoG Governor

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

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

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

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

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

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

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

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

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

  • I never used the word “hooligans” against NDC MPs – BoG Governor

    I never used the word “hooligans” against NDC MPs – BoG Governor

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has clarified remarks attributed to him during the #OccupyBoG protest in October last year.

    Dr. Addison stated that the term “hooligans” was not used by him but was instead attributed to him by a foreign media house that initially covered the story.

    During his appearance before the Public Accounts Committee (PAC) in Parliament on Monday, April 8, 2024, Dr. Ernest Addison clarified that the term “hooliganism” was an interpretation by the media house and not an accurate representation of his words.

    “This is what I am coming to say that those who know me and know my character…you have not heard a single word of a recorded message with me describing parliamentarians in that manner. This was some foreign journalist’s description of the conversation we had and I disowned it,” he stated.

    The #OccupyBoG demonstration, which took place in October 2023, involved a coalition of minority parliamentarians, NDC supporters, and various interest groups.

    They were demanding the resignations of Dr. Addison and his deputies over allegations of economic mismanagement and unauthorized currency printing.

    Dr. Addison had responded to the protest by referring to the demonstrators as “hooligans” and stating that neither he nor his deputies would resign.

    However, in an interview with the international business website Central Banking, he later characterized the NDC-led protest as “completely unnecessary.”

  • Dr. Joseph O. France appointed advisor of UMB bank to monitor its recapitalization efforts

    Dr. Joseph O. France appointed advisor of UMB bank to monitor its recapitalization efforts

    Bank of Ghana has appointed an advisor in the person of Dr. Joseph O. France to oversee the recapitalization efforts of Universal Merchant Bank Limited, commencing from March 25, 2024.

    According to a statement released by the Central Bank, Dr. France will offer guidance to UMB’s management in supervising the implementation of governance reforms agreed upon by UMB and the Bank of Ghana.

    This appointment aligns with section 101(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

    “The Advisor will be at post at UMB until otherwise advised by the Bank of Ghana and will furnish the Bank of Ghana with a status report on the bank as frequently as the Bank of Ghana may require,” the statement said.

    “It is important to note that an Advisor, unlike an Official Administrator, does not take over the powers, responsibilities, and duties of the bank’s shareholders, directors, or management. Under Act 930, the Advisor may attend meetings of the Board of Directors or Committees of the bank without voting at such meetings,” it added.

    Nonetheless, the BoG gave UMB’s clients and depositors the reassurance that the financial institution is still operational and run by the management group of UMB.

    The Central Bank went on to say that it is still dedicated to fostering a stable and resilient banking industry that continues to enjoy the public’s trust.

    Press-Release-on-Universal-Merchant-Bank-LTD-26032024Download
  • World Bank’s $300m financial support hits BoG’s account

    World Bank’s $300m financial support hits BoG’s account

    The $300 million World Bank facility earmarked for various projects in 2024 has finally been transferred to the Bank of Ghana’s (BoG) account.

    Ghana fulfilled all necessary conditions, including securing approvals from Cabinet and Parliament, to facilitate this transfer. According to Joy Business, the funds were transferred on the morning of March 27, 2024.

    The BoG is now expected to convert the dollars into cedis and distribute the equivalent amount to government agencies and ministries.

    The foreign exchange component of this facility is expected to bolster the international reserves of the Bank of Ghana. Data from the BoG indicates that its Gross International Reserves exceeded $6 billion by the end of February 2024.

    Finance Minister Dr. Mohammed Amin Adam recently stated during a media engagement that the government anticipates receiving around $1.2 billion from development partners before the year ends. This disbursement is crucial for expediting infrastructure projects outlined in the 2023 Budget that were delayed due to the late arrival of donor support.

    Originally scheduled for disbursement late last year, the World Bank’s release of this facility was delayed as Ghana struggled to reach an agreement with its bilateral creditors, hampering the approval process for the $300 million loan.

    This inflow is expected to curb the depreciation of the cedi by signaling to the international market that the Central Bank is better equipped to stabilize the local currency.

    The $300 million Development Policy Financing, the initial tranche of a three-part series, is aimed at crisis response and resilience-building in Ghana. Its primary objectives include restoring fiscal sustainability, enhancing financial sector stability and private sector development, improving energy sector financial management, and bolstering social and climate resilience.

    This disbursement is expected to enhance domestic revenue mobilization, control expenditures, ensure financial sector stability, facilitate private investment, stabilize the energy sector financially and operationally, fortify the country’s social protection system, and integrate climate adaptation and mitigation into policies.

    Background:
    This disbursement is part of the overall financial support from Ghana’s donors as part of the IMF program secured by the country in May 2023. The IMF has already provided approximately $1.2 billion to Ghana under the FUND program.

    According to the World Bank, this initial tranche of the Resilient Recovery Development Policy Financing is a crucial contribution from the Bank’s International Development Association. It is designed to assist Ghana in its economic recovery and promote resilient and inclusive growth.

    The World Bank approved this facility in January 2024 following an agreement in principle by the Official Creditors’ Committee under the G20 Common Framework on the key parameters of Ghana’s proposed debt restructuring. This agreement aligns with the Joint World Bank-International Monetary Fund Debt Sustainability Framework, marking a significant step toward restoring debt sustainability.

  • Ghana cedi will remain relatively stable against the US dollar going forward – Governor

    Ghana cedi will remain relatively stable against the US dollar going forward – Governor

    Governor of the Bank of Ghana (BOG), Dr. Ernest Addison expressed optimism regarding the stability of the Ghana cedi against the US dollar in the near future.

    He attributed this confidence to the robust reserves accumulated by the Bank of Ghana and the implementation of fresh monetary measures along with stringent enforcement of foreign exchange regulations.

    Dr. Addison emphasised that the Bank of Ghana’s reserves had surpassed $6.0 billion, marking a significant improvement in the factors that previously exerted pressure on the cedi.

    “This is based some strong reserves that the Bank of Ghana has built over the past months to support the cedi, some fresh monetary measures being implemented, and strict enforcement of the foreign exchange regulations.

    “We are now reporting reserves of more than $6.0 billion, and therefore the underlying factors that caused those pressures in the past have improved greatly”,  Dr. Addison disclosed.

    He highlighted increased remittance inflows as well, which are expected to bolster the currency’s performance in the upcoming months.

    “We believe that all these developments should give the market some assurance that the cedi’s outlook will remain favourable”.

    Addressing concerns about recent challenges faced by the cedi, especially in the first quarter of 2024, Dr. Addison acknowledged a depreciation of about 6.8% against the US dollar.

    “These were compounded by delays and uncertainties associated with the second tranche of the cocoa loan inflow and World Bank’s disbursement of budget support”, the Governor added.

    However, he noted that measures taken by the central bank throughout 2023 and recent months were beginning to show positive responses.

    Despite pressures stemming from the strength of the US dollar in global markets and payments to sectors like energy and corporate, Dr. Addison pointed out mitigating factors such as remittance inflows, mining company contributions, and the Domestic Gold Purchase Programme.

    “Inflows from the World Bank, the tight monetary policy stance, and a weaker US dollar from potential policy rate cuts in the USA are expected to support the relative stability of the Ghana cedi”, he pointed out.

    He also mentioned expectations of support from inflows, a tight monetary policy stance, and potential US policy rate cuts affecting the US dollar’s strength.

    Dr. Addison discussed the revised cash reserve ratio and emphasized the central bank’s commitment to strict enforcement of foreign exchange regulations as measures to uphold the cedi’s performance in the upcoming weeks.

  • Ghana’s public debt reached GH¢610 billion ($52.4 billion) at the end of 2023 – BOG

    Ghana’s public debt reached GH¢610 billion ($52.4 billion) at the end of 2023 – BOG

    The Bank of Ghana‘s (BOG) March 2024 Summary of Economic and Financial Data has revealed that Ghana‘s public debt has soared to GH¢610 billion ($52.4 billion) by the end of 2024.

    This marks an increase of GH¢42.7 billion from September 2023 to December 2023, following a previous decline of ¢14.2 billion between June 2023 and September 2023, when it stood at ¢567.3 billion ($51.0 billion).

    The current debt level accounts for 72.5% of the country’s Gross Domestic Product (GDP), indicating that Ghana’s debt situation remains challenging despite the completion of the Domestic Debt Exchange Programme.

    The rise in debt is attributed to a GH¢19.1 billion increase in domestic debt and a GH¢23.6 billion increase in external debt, primarily due to the depreciation of the cedi.

    According to the Central Bank’s data, the external component of the total public debt was $30.1 billion (¢350.3 billion) in December 2023, representing 41.6% of GDP.

    Meanwhile, domestic debt stood at ¢259.7 billion, accounting for about 30.1% of GDP.

    The report, however, lacks information on the financial sector resolution debt and other liabilities like the energy sector debt.

    Despite these challenges, the government’s fiscal operations remained on target, with the deficit-to-GDP ratio standing at 3.3% in December 2023, down from 8.3% in December 2022.

    Additionally, there was a surplus of 0.4% of GDP in the primary balance in December 2023.

    Ghana had suspended interest payments on loans to external creditors in December 2022 amid economic difficulties and is currently in negotiations with bondholders after reaching a deal with bilateral creditors in January 2024.

  • Ghana poised to lead Fintech Investment – BoG

    Ghana poised to lead Fintech Investment – BoG

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

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

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

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

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

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

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

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

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

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

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

  • Domestic VAT collections increased to GHC1.9 billion in 2023 – BoG

    Domestic VAT collections increased to GHC1.9 billion in 2023 – BoG

    According to the January 2024 Monetary Policy Report from the Bank of Ghana, the real sector of the economy showed a mixed performance in the eleven months of 2023.

    Consumer spending, indicated by domestic VAT collections and retail sales, saw a strong performance in November 2023 compared to the same period in 2022.

    Domestic VAT collections increased significantly by 128.9% year-on-year to GH¢1.978 billion, while total domestic VAT for the first eleven months of 2023 rose by 66.6% to GH¢12.831 billion.

    Retail sales also increased by 2.4% year-on-year to GH¢193.12 million in November 2023, up from GH¢188.60 million in November 2022. Cumulatively, retail sales for the first eleven months of 2023 rose by 30.4%.

    In the manufacturing sub-sector, indicated by trends in the collection of direct taxes and private sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme (Tier-1), there was an improvement in November 2023. Total direct taxes collected increased by 135.3% year-on-year to GH¢5.880 billion in November 2023, while total direct taxes collected for the first eleven months of 2023 rose by 60.6% to GH¢44.432 billion.

    However, activity in the construction sub-sector, indicated by the volume of cement sales, declined by 13.2% year-on-year in November 2023 to 231,571.37 tonnes, down from 266,695.03 tonnes a year ago. Cement sales for the first eleven months of 2023 also decreased by 25.1% to 2,358,386.77 tonnes.

    Transport sector activities, indicated by new vehicle registrations by the Driver and Vehicle Licensing Authority (DVLA), declined by 14.8% to 7,268 in November 2023, from 8,533 vehicles registered in November 2022. Cumulatively, vehicles registered by the DVLA within the first eleven months of 2023 decreased by 35.7% to 135,544.

    Passenger arrivals, however, improved by 25.5% year-on-year to 104,157 in November 2023, compared to 82,977 arrivals a year ago. Cumulatively, for the first eleven months of 2023, there were 1,019,841 arrivals recorded at the international airport and land borders, representing a growth of 25.8% compared to the same period in 2022.

    International trade at the two main harbors (Tema and Takoradi) showed improvement, with total container traffic increasing by 28.8% year-on-year to 57,738 in November 2023. However, in cumulative terms, total container traffic for the first eleven months of 2023 dipped by 3.3% to 570,711, compared to the same period in 2022.

  • 500 female entrepreneurs to gain from DBG, partners’ GHS1bn funding initiative

    500 female entrepreneurs to gain from DBG, partners’ GHS1bn funding initiative

    The Development Bank Ghana (DBG) has reiterated its dedication to fostering the advancement of women entrepreneurs in the nation.

    During the Investment Climate Reform (ICR) Facility – Development Bank Ghana Stakeholder Workshop, the bank’s Deputy Chief Executive, Michael Mensah-Baah, unveiled DBG’s initiative to empower 500 women-led enterprises.

    These businesses are set to benefit from the GH₵1 billion fund, which DBG and its partners aim to deploy to support Micro, Small, and Medium Enterprises (MSMEs).

    Mensah-Baah highlighted DBG’s collaboration with pertinent stakeholders and likeminded financial institutions to realize this objective within the next three to five years.

    “DBG is a wholesale lending institution, that is, we lend to other financial institutions so we need to have partners who are like-minded like us, who will work with us, and who share this same ambition of being able to support women-led businesses,” he said on Wednesday.


    This initiative is a direct response to the significant challenge of limited access to financial assistance for women.

    During discussions with the media at the event, Mr. Mensah-Baah recognized the existing gap in financial access. Despite women owning 50 percent of businesses in Ghana, only 10 percent of these businesses have access to funding.

    He emphasized that the workshop aimed to identify and overcome the obstacles hindering women entrepreneurs from accessing the financial support they need.

    “The issue we have discovered is that women who are available to receive this funding still struggle to get funding and we needed to have this workshop to understand some of the barriers that prevent them from accessing the funding.

    “This is because even though the funding is available and the women are unable to access it, we won’t achieve our ambition of providing long-term capital for these women,” he stated.

    According to him, the bank will not only provide financial support but will also offer capacity-building and technical assistance to empower women-led businesses.

    He believed this technical training would support women-led businesses, facilitate their growth, and transform their businesses from micro-enterprises into large corporate entities in Ghana.

    Emina Abrahamsdotter of the GFA Consulting Group, on her part encouraged collaboration between stakeholders to improve women’s access to finance in the country.

    She also noted that staff of DBG and 15 other financial institutions will be trained on gender equality, gender mainstreaming and women’s financial empowerment.

    Taking her turn, the Team Lead of Women Banking of Access Bank Ghana, Charity Ahadzie highlighted the numerous challenges faced by women entrepreneurs including lack of access to networking opportunities, information and finance.

    She therefore noted that educating and training these women is a crucial form of empowerment to assist them grow their various businesses.

    Madam Ahadzie therefore noted that her outfit which is a PFI-partner of DBG readily undertakes capacity building events to ensure that “whatever they are learning they will be able to plow it back into their businesses that way when you lend to them their businesses will grow and they will be able to repay.”

  • BoG adjusts momo transaction limits to meet growing demand

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

    The decision to revise the limits comes after the release of the 2023 Fintech Sector report by the Bank of Ghana, which highlighted a significant surge in mobile money transactions. 

    According to the report, there was a remarkable 79 percent increase in the total value of Mobile Money transactions, reaching GHS1.9 trillion compared to the figures recorded in 2022. 

    Additionally, the total value of Mobile Accounts (Funds) held with commercial banks witnessed a 40% increase, reaching GHS18.3 billion.

    Acknowledging the growing trends in transactional activities and the need to accommodate evolving customer demands, the Bank of Ghana deemed it necessary to adjust the transaction limits for various customer accounts.

    Effective March 1, 2024, the newly approved guidelines include adjustments to the transaction limits for different customer accounts.

    These adjustments aim to ensure that mobile money users can effectively conduct their transactions while maintaining the security and integrity of the mobile money ecosystem.

    The revisions in transaction limits are expected to provide greater flexibility and convenience for mobile money users across the country. Furthermore, it aligns with the Bank of Ghana’s commitment to fostering financial inclusion and promoting the use of digital financial services in Ghana.

    As mobile money continues to play a vital role in driving financial inclusion and economic growth in Ghana, the Bank of Ghana remains committed to monitoring and adapting to the evolving needs of mobile money users and the broader financial ecosystem.

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

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

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

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

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

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

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

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

  • Transaction limits of customers’ MoMo wallets to be reviewed effective March 1

    Effective March 1, 2024, the Bank of Ghana (BoG) has increased the balance and transaction limits for customers’ mobile money wallets.

    This adjustment comes in response to the growing trend of transactional activities and changing customer needs.

    The Ghana Chamber of Telecommunications released a statement highlighting these changes. Under the new limits, daily transaction limits have been raised for different account tiers.

    For example, the minimum account, which previously had a GH¢2,000 limit, has been raised to GH¢3,000. Similarly, the medium account limit has been increased from GH¢10,000 to GH¢15,000, and the enhanced account limit has been raised from GH¢15,000 to GH¢25,000.

    For maximum accounts, the minimum account limit has been increased from GH¢3,000 to GH¢5,000, the medium account limit has been raised from GH¢25,000 to GH¢40,000, and the enhanced account limit has been increased from GH¢50,000 to GH¢75,000.

    Regarding monthly transaction limits, the minimum account limit has been raised from GH¢6,000 to GH¢10,000. The medium and enhanced accounts, which previously had no limits on the value of monthly transactions, remain unchanged.

    “Kindly reach out to the personnel of our members at any of their customer service centers across the country, for any clarification you may need”, the statement concluded.

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

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


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

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

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

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

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

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

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

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

  • Bank of Ghana implements measures to avoid EU, UK blacklisting risk

    Bank of Ghana implements measures to avoid EU, UK blacklisting risk

    In a bid to mitigate the risk of being blacklisted by the European Union and the United Kingdom, the Bank of Ghana has announced proactive measures.

    These steps underscore the institution’s dedication to collaborative efforts with key stakeholders in the financial sector.

    Following a comprehensive evaluation of Ghana’s anti-money laundering and counter-terrorism financing regime by the Financial Action Task Force (FATF) in 2022, Ghana was successfully removed from the EU blacklist.

    Second Deputy Governor Elsie Addo-Awadzi has expressed the Central Bank’s commitment to working closely with other stakeholders to maintain this achievement.

    Speaking at the Financial Intelligence Centre Ghana’s Risk Assessment on Money Laundering and Terrorism Financing forum, Addo-Awadzi emphasized the importance of sustaining the positive outcomes derived from previous reforms.

    “As we proceed to the third round of the mutual evaluation process next year, it is imperative that we sustain the fruits of the hard work exerted by all stakeholders that led to critical reforms and implementation that persuaded FATF, the EU, and the UK to remove Ghana from any adverse listings for ML/CFT/PF risks. All stakeholders must continue to work to maintain an effective AML/CFT/PF regime that stands the test of time,” she said.


    The Deputy Governor urged financial institutions to back the Central Bank’s efforts in combating money laundering and terrorism financing. Stressing the importance of the National Risk Assessment (NRA), she underscored its role in enabling a thorough self-assessment of the financial system’s development and the efficacy of the current regulatory framework.

    “This NRA presents us a rare opportunity to critically self-assess, taking into account the evolution of our financial system and all key sectors of our economy and how business is being conducted since the last assessment, as well as relevant external factors, and to critically assess whether our AML/CFT/PF regime after all the recent reforms remains robust in the face of these developments.”

    She further assured that, “The Bank of Ghana, as the guardian of the monetary system, remains committed to playing its parting as a regulator to support the successful completion of the NRA and a successful Third Round Mutual Evaluation exercise.”

  • Bank of Ghana accused of plagiarism and IP theft

    Bank of Ghana accused of plagiarism and IP theft

    The world of central banking is surprisingly replete with accusations of plagiarism. 

    The governor of Turkey’s central bank between 2019 and 2020 (and vice governor before then), Murat Uysal, was pilloried by local academics for plagiarising large portions of his Master’s thesis and two published works. He did not get fired for it. After the Turkish Lira lost 30% of its value, however, he was shown the door and replaced with Naci Agbal. Four months later, Naci was summarily dismissed and the job was given to Şahap Kavcıoğlu. No sooner had Sahap settled in than his Alma Mater confirmed an investigation into his PhD thesis. The verdict: large tracts of the text had been lifted from Turkish central bank annual reports. He survived the scandal and stayed in office until the Turkish President tired of him last year.

    Around the same time that Sahap was defending his academic integrity, accusations started to fly that the Icelandic central bank governor, Ásgeir Jónsson, was guilty of a similar sin. A Norse Philologist, Bergsveinn Birgisson, with a deep expertise in mythical fiction, was the accuser. The strange intersection of their interests was on the subject of the first settlement of Iceland, on which both had published books. Birgisson says Jonsson stole important hypotheses from his work without attribution. Jónsson denied. Not much came of the dispute. 

    Much closer to home is the better-known case of the United States–based academic, Victor Dike, and his campaign to bring then governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, to justice for copying from three pages of Dike’s academic paper without giving him the slightest bit of credit. The CBN responded with the most uproarious of excuses: the governor didn’t write the speech, didn’t deliver it on his behalf, and was merely a ventriloquist for the CBN itself in his public speaking appearances! Professor Dike insisted that he will see the governor in Court, and the CBN could follow him there if they so wished. The matter seems lost in the maze that is the Nigerian justice system.

    This is the somewhat checkered background against which Ghanaian entrepreneur and development finance specialist, Kofi Arkaah, brings his charge against the Bank of Ghana. Except, perhaps luckily, he is not accusing any official there of lifting verbatim from his published work for their own speeches, theses or academic papers. In some ways, though, his allegation is just as concerning. He is accusing the Bank of Ghana of basing a major policy initiative on a technical model he developed and shared with one of their most senior officials, but doing so sneakily and dishonestly to avoid acknowledging his contributions.

    Mr. Arkaah has shown a trail of correspondence to this author which establishes clearly that he did share with a very senior official at the central bank a draft model, and underlying data, on how to develop an optimal gold reserves policy for Ghana. One that would complement the country’s inflation-targeting regime and bolster the national currency by carefully managing the ratio between gold reserves and overall gross international reserves. The trail of correspondence shows the senior official initially expressing a willingness to help Arkaah refine the model before abruptly terminating the engagement. 

    Arkaah’s need for research support to benchmark the model with data from the Eurozone and WAEMU is what had initially driven the aborted collaboration in 2017. Not much happened in the ensuing years. 

    Central bank gold reserves as a relative measure. 
    Chart Source: Refinitiv GFMS, World Gold Council & James Steel/Centralbanking.com (2023)

    It would seem, however, that some time after the senior Bank of Ghana official terminated the engagement, an army of research assistants were detailed to dig into Arkaah’s data and initial model. In 2021, the Bank of Ghana announced the Gold Purchase Program.

    Central bank gold reserves as an absolute measure.
    Chart Source: IMF (2023)

    In his speech heralding the start of the program, the governor gave credit for the idea of developing a gold-backed reserves optimisation policy solely to the sitting Vice President:

    “Ladies and Gentlemen, before I conclude, let me acknowledge the support of His Excellency the Vice President, Dr. Mahamudu Bawumia who got this programme started.”

    Attentive observers would have noted similar content in the recent UPSA speech of the Vice President. To be clear, Arkaah does not accuse the Vice President of any complicity in these matters. 

    It is generally the case that intellectual property (IP) infringement cases brought against central banks usually involve technology applications, and are rarely successful. Examples being the lawsuit brought against the European Central Bank by Rochester-based Document Security Systems and Technocrat Consult & IT Limited’s legal action against the Central Bank of Nigeria. However such technology-related IP disputes normally involve patents, not copyrights, and not all disputes are meant for the courts. Reputational consequences also matter. 

    Indeed, many of the lawsuits currently underway against Artificial Intelligence (AI) companies worldwide involve the uncredited incorporation of copyrighted work into complex, dynamic, models, and the reputational blowback against tech companies for being perceived as ripping off poor creatives. IP lawsuits involving financial models and research are, actually, also not all that unheard of, a case in point being the famous Barclays Capital vs theflyonthewall.com litigation (where the American courts did make a finding of copyright violation). 

    In bringing this matter to the public’s attention, Arkaah says he is not looking for cheap fame or monetary compensation. To his mind, the policy ecosystem of any serious country is a community of practice. In such a community, it is critical that ideas are properly sourced and attributed to encourage innovative thinking, a sound competition of ideas, and professional integrity.

    He does not mind at all that the technical mechanics of aligning central bank gold purchases with other macroeconomic variables were, to his mind, clearly extracted from his model by the Bank of Ghana. He wants many African countries looking to back their currency with gold to do similar statistical heavy-lifting and not fall into the same trap that the likes of Zimbabwe did when they went down that road without a well-calibrated model. 

    He is peeved however that rather than seeing an opportunity to engender dialogue with the policy community so that the model could be refined for Ghana’s benefit, the Bank of Ghana stealthily appropriated his ideas, and that its officials are busily making unnecessary partisan political capital out of it. To Arkaah’s mind, that kind of conduct does not become a technical organisation that must stay above politics, guard its institutional independence jealously, and nurture the sharpest technocratic thinking and practice. Moreover, the documented allegations of appropriation of intellectual property, without even the basic trivial courtesy of acknowledgement, reinforce a pattern of impunity, which the Ghanaian central bank has been oft accused of perpetrating.

    Readers will note that, to date, the Bank of Ghana (BoG) has failed to publish any serious position papers on either the so-called Gold for Oil program or the program referenced in this essay, the Gold Purchase Program. Consequently, the policy and academic communities have been unable to provide robust feedback and subject the BoG’s thinking to the necessary intellectual scrutiny. And, now, we see clear evidence in this Arkaah affair of the BoG’s undue wariness in engaging with professionals desirous of contributing ideas to enhance monetary policymaking in Ghana.

    This author’s consistent complaints about the shifty conduct of central banking in the current dispensation finds at least partial vindication in the Arkaah claims. Whether it is concerning the contentious recapitalisation program, the botched bailout funds recovery effort, or the BoG’s very murky approach to procurement, the usual style has been one weighed down by a total lack of candour, transparency, openness to scrutiny, and good-faith dealings with public stakeholders.

    Mr. Kofi Arkaah tells this author that his intellectual campaign about optimal gold reserves and ideal ratio will not be curtailed by this setback. It is an idea, he says, destined for continental relevance. And he is only getting started.

    Source: Bright Simons is the vice-president, in charge of research at IMANI Centre for Policy and Education.

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

  • BoG to stop some operations owing to GHC60bn loss – IEA Director

    BoG to stop some operations owing to GHC60bn loss – IEA Director

    Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has criticized the characterization by New Patriotic Party flagbearer Dr. Mahamudu Bawumia of the GH¢60.81 billion losses posted by the Bank of Ghana for the year 2022 as merely “technical losses.”

    According to the economic researcher, these losses will inevitably result in cuts to essential operations of the Bank as it seeks to mitigate costs.

    In a piece titled “Dr. Bawumia’s Speech: Turning an Impossibility into the Possibility?”, Dr. Kwakye highlighted the immediate effects of these losses, particularly noting the fluctuating inflationary figures experienced by the country.

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

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

    Dr. Kwakye contended that despite attempts by Finance Minister Ken Ofori-Atta and the Bank of Ghana to downplay the significance of the loss, the country’s balance sheet has been significantly affected.

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

  • ‘Responsible’ Bank of Ghana is unfairly criticised – Bawumia

    ‘Responsible’ Bank of Ghana is unfairly criticised – Bawumia

    Vice President Dr Mahamudu Bawumia commended the Bank of Ghana (BoG) for its prudent measures rolled out in efforts to stabilize the Ghanaian economy during the COVID-19 pandemic. 

    Delivering an address to Ghanaians on February 7, 2024, the Vice President noted that BoG was very instrumental in bringing the economy back on track after the pandemic hit the shores of the country. 

    He noted that the institution had been unfairly criticized despite its pivotal role in pulling the economy back from the brink. 

    “I must at this stage salute and give particular recognition to the Bank of Ghana which has come under unfair criticism for taking the necessary measures which helped pull the economy back from the brink,” he said. 

    Dr. Bawumia particularly lauded the BoG for prioritizing the interests of Ghanaian citizens and providing necessary financing to the government during critical moments.

    “BoG provided needed financing to the government at that critical moment. What the BoG did was very responsible in putting the interest of the good citizens of Ghana first,” he added.

    Dr. Bawumia emphasized that the data available clearly demonstrates the temporary nature of the financing provided by the BoG to the government, with zero financing recorded in five out of the last seven years, including 2017, 2018, 2019, 2021, and 2023.

    Highlighting the context behind the BoG’s financing of the government during specific periods, Dr Bawumia pointed to domestic and global crises, such as the COVID-19 pandemic in 2020 and the liquidity crisis in 2022. 

    These challenges, coupled with underperforming revenue and limited access to international capital markets, necessitated support from the BoG to sustain the economy during turbulent times.

    “The data which is available shows that the financing provided to the government by the Bank of Ghana was temporary. The Bank of Ghana has provided zero financing in five out of the last 7 years. Zero financing in 2017, 2018, 2019, 2012 and 2023. 

    “The BoG financing of the government in the COVID-19 year of 2029 and the liquidity crisis year of 2022 was because of the domestic and global crisis with underperforming revenue and no access to international capital markets. Ladies and gentlemen, the good news is that the data shows that the economy is recovering from the crisis we faced,” he added.

  • Bank of Ghana convenes meeting to address Mobile Money users’ concerns

    Bank of Ghana convenes meeting to address Mobile Money users’ concerns

    The Bank of Ghana has scheduled a meeting for today, February 6, 2024, which will involve officials from the Ghana Revenue Authority and various stakeholders in the financial sector.

    The purpose of the meeting is to tackle concerns raised by mobile money users regarding unauthorized deductions during transactions.

    This initiative comes in response to a significant number of complaints from mobile money users who have experienced deductions beyond the authorized 1.0% levy following the implementation of the Electronic Transfer Levy.

    During a media briefing in Parliament on February 5, 2024, Sam George, the Deputy Ranking Member on Parliament’s Communications Committee, expressed these concerns. He urged authorities to promptly address the issue and voiced apprehensions about the implementation structure of the e-levy.

    “I still hold the view that the whole implementation architecture of this e-levy is problematic, and the government needs to sit down and understand what it wants to do and not be in a hurry. President Akufo-Addo told us he is in a hurry but he is in a hurry to fail, and that is exactly what they are achieving,” Sam George remarked.

    He revealed information about an imminent meeting that will include the Bank of Ghana, Electronic Money Issuers (EMIs), telecommunications companies, and banks. The purpose of the meeting is to address systemic issues related to the ELMAS system, particularly focusing on the challenge of real-time data uploads.

    He revealed information about an imminent meeting that will include the Bank of Ghana, Electronic Money Issuers (EMIs), telecommunications companies, and banks. The purpose of the meeting is to address systemic issues related to the ELMAS system, particularly focusing on the challenge of real-time data uploads.

  • Bank of Ghana launches database portal for enhanced data access

    Bank of Ghana launches database portal for enhanced data access

    The Bank of Ghana (BoG) has introduced the Beta Version of its Database Portal, a significant move towards consolidating macroeconomic data retrieval and visualization.

    This initiative highlights the institution’s dedication to transparency and adherence to global standards within its inflation targeting framework of monetary policy.

    The newly unveiled portal aims to simplify data access for the general public and researchers while catering to the increasing demand for economic information.

    Structured into five primary economic sectors—External, Financial, Fiscal, Monetary, and Real Sector—along with Survey-Based Indicators, the portal hosts 255 monthly and 86 quarterly time series data collected from the BoG and other pivotal stakeholder institutions.

    Regular data updates and revisions will be synchronized with the Data Release Calendar published on the portal, ensuring users have access to the most up-to-date information.

    By centralizing data on a single platform, the Bank of Ghana seeks to improve data accessibility and facilitate informed decision-making processes across various sectors.

    To access the wealth of macroeconomic data available on the Portal, individuals are invited to visit; https://app.datawarehousepro.com/go/bog/