Tag: Bank of Ghana

  • Cedi depreciation continues despite Bank of Ghana’s Efforts

    Cedi depreciation continues despite Bank of Ghana’s Efforts

    Despite the Bank of Ghana’s efforts to stabilize the currency by selling $7 million in the spot market and conducting a $20 million auction to Bulk Oil Distribution Companies, the cedi depreciated by 0.60% against the dollar last week.

    So far this year, the cedi has lost about 2.5% of its value, mainly due to increased demand from corporate entities, especially in the energy and agricultural sectors.

    Currently, the cedi is trading at GH¢12.48 against the US dollar in the retail market and GH¢12.07 on the interbank market.

    Analysts predict that the currency may see some stability this week.

    This expectation is based on lower corporate demand for foreign exchange as importers have already stocked up ahead of the Chinese holidays from February 9 to February 15, 2024.

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

    BoG introduces user-friendly Beta version of Macroeconomic Database Portal


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

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

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

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

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

  • BoG greenlights RightCard’s remittance operation in Ghana

    BoG greenlights RightCard’s remittance operation in Ghana

    RightCard Payment Services Limited, also known as LemFi, has received approval from the Bank of Ghana (BoG) to resume its remittance services to Ghana in collaboration with approved partners.

    The approval aligns with RightCard’s commitment to providing secure and efficient services while adhering to the regulatory framework set by the Bank of Ghana.

    Following a temporary suspension of its money transfer services in November 2023, RightCard (LemFi) has officially announced the resumption of its services to Ghana.

    The company will now operate through approved partners, including payment companies BigPay and ExpressPay, as sanctioned by the Bank of Ghana.

    RightCard (LemFi) offers innovative services and products in various markets through its LemFi app. Notably, LemFi is already licensed as an Electronic Money Institution with the Financial Conduct Authority in the United Kingdom.

    “We are grateful to stakeholders at the Bank of Ghana as well as our partners for their role in ensuring service restoration”, said Precious Ama Kwartemaa Oduro, LemFi’s Country Manager.

    “We resume our operations with a better understanding, and we are now better positioned to address the evolving needs of the Ghanaian market,” she added.

    LemFi’s reentry into the Ghanaian market comes with a renewed emphasis on enhancing customer satisfaction, strengthening collaborations with crucial stakeholders, and a dedication to advancing financial inclusion.

    Both current and potential customers are now able to benefit from LemFi’s offerings, including competitive exchange rates, zero transaction fees, and instant transfer delivery. To access these services, individuals can download the LemFi app from the iOS or Google Play Store.

  • GCB capital lauds BOG policy rate; hints persistence in introducing lower rates

    GCB capital lauds BOG policy rate; hints persistence in introducing lower rates

    The Bank of Ghana ( BOG) announced on Monday, January 29, 2024, that it will lower the policy rate by 100 basis points.

    The decision was made in light of growing inflationary risks.

    Ghana Commercial Bank (GCB) Capital explains that the Monetary Policy Committee (MPC) decided on a cautious position because of variables that are aiding in the disinflation process, including favourable crude oil prices, a tight policy stance, and relative cedi stability.

    This is in spite of the possibility of a deeper reduction.

    The Monetary Policy Committee (MPC) anticipates headline inflation to ease to 15%±2% by the end of 2024 and gradually return to the medium-term target range of 8%±2% by 2025.

    GCB Capital comments that the cut seems conservative, with the MPC relying on a commitment to maintaining a tight monetary policy stance and strict implementation of the 2024 fiscal budget to sustain the inflationary outlook.

    While acknowledging the ongoing disinflation process, GCB Capital agrees with the MPC’s medium-term outlook despite emerging upside risks.

    The firm expects the disinflation to persist but at a slower pace, potentially experiencing a shift in March 2024 due to unfavourable base drifts before resuming the downward trend from April 2024.

    GCB Capital also notes that, despite economic indicators showing signs of continuous recovery, the Gross Domestic Product (GDP) growth remains below trend and necessitates stimulus.

    The policy rate cut is seen as unsurprising, and GCB Capital anticipates the MPC will uphold a suitably tight policy stance to support the disinflationary process.

    See statement below:

    The rate cut could have been deeper, but for the emerging upside risks to inflation: The committee noted the several factors anchoring the disinflation process, including the tight policy stance, relative cedi stability, and favourable crude oil prices, among others, and the committee expect the disinflation process to continue despite the emerging upside risks to the inflation outlook”, it revealed in it Economic Update and Market Insight.

    The MPC cut the policy rate by 100 basis points to 29% on Monday January 29, 2024. It expects headline inflation to ease to 15%±2% by the end of 2024 and gradually trend back to within the medium-term target range of 8%±2% by 2025.

    GCB Capital said “Thus, the 100% cut appears to be a conservative action, given the upside risks to inflation, with the MPC counting on its commitment to maintain an appropriately tight monetary policy stance and a strict implementation of the 2024 fiscal budget to sustain the inflationary outlook”.

    Disinflation process to continue but at slower pace

    It continued that the disinflation process will continue but at a slower pace

    “We agree with the MPC that the disinflation process is on course, and we are broadly aligned on the medium-term outlook for inflation despite the emerging upside risks. We expect the disinflation process to continue but at a slower pace, potentially changing course in March 2024 due to unfavourable base drifts before resuming the downward trend from April 2024”.

    Again, it said though the 2.8% average growth outturn over nine months of 2023 is ahead of target and the leading indicators of economic activity are showing signs of continuous recovery, Gross Domestic Product growth is still below trend and requires stimulus; hence, the unsurprising cut in the policy rate.

    However, it expects the MPC to maintain an appropriately tight policy stance to sustain the disinflationary process.

  • BoG records over GHC900bn increase in mobile money transactions

    BoG records over GHC900bn increase in mobile money transactions

    The total value of mobile money transactions in Ghana reached a record level in 2023, according to the 2023 Summary of Economic and Financial Data by the Bank of Ghana (BoG).

    The total mobile money transactions for the year amounted to GH¢1.912 trillion, compared to GH¢1.07 trillion in 2022. In the first 10 months of 2023 alone, the total had reached a record GH¢1.527 trillion.

    The data showed consistent growth throughout the year, with December 2023 recording the highest mobile money transaction value of GH¢199.3 billion.

    Each of the 12 months in 2023 saw transaction values exceeding GH¢100 billion.

    In January 2023, the value of mobile money transactions stood at GH¢130.1 billion, compared with GH¢76.2 billion during the same period in 2022.

    It surged to GH¢134.0 billion in February 2023 (February 2022: GH¢76.5 billion) and subsequently to GH¢147.5 billion in March 2023 (March 2022: GH¢90.5 billion).

    It however, fell to GH¢138.8 billion in April 2023 (GH¢87.7 billion), but shot up to GH¢159.7 billion in May 2023 (May 2022: GH¢71.4 billion) before declining slightly to GH¢149.4 billion in June 2023 (June 2022: GH¢77.1 billion).

    But it achieved a then-record transaction of GH¢169.6 billion in July 2023, before declining to GH¢161.8 billion in August 2023.  It again fell to GH¢157.0 billion in September 2023 (GH¢88.2 billion: September 2022) before hitting an all-time record of GH¢179.2 billion in October 2023.

    It then surged to GH¢185.9 billion in November 2023 and to GH¢199.3 billion in December.

  • BoG reduces policy rate by 1% after intense pressure

    BoG reduces policy rate by 1% after intense pressure

    The Monetary Policy Committee of the Bank of Ghana (BoG) has announced a reduction in its key lending rate from 30% to 29.0%.

    Chairman of the committee, Dr. Ernest Addison, made this announcement following the 116th meeting.

    Dr. Addison mentioned that the decision to cut the lending rate was influenced by a consistent decline in inflation, which fell from 54.0% in December 2022 to 23.4% in December 2023. However, he also noted that there are downside risks despite the positive trend in inflation.

    “The latest forecast suggests that the disinflation process will continue, and headline inflation is expected to ease to around 13-17% by the end of 2024, before gradually trending back to within the medium-term target range of 6-10% by 2025. These forecasts notwithstanding, there are upside risks to the inflation outlook and there is need for strict implementation of the 2024 budget and a tight monetary policy stance to sustain the disinflation process”.

    “The Committee noted the emerging recovery but sees the need to maintain a strong policy stance to consolidate the disinflation gains. Under these circumstances, the Committee decided to reduce the Monetary Policy Rate by 100 basis points to 29.0%”, the Governor added.

    Prior to the recent information, the Ghana National Chamber of Commerce and Industry (GNCCI) advocated for a reduction in the policy rate to support business growth.

    In a statement, the GNCCI highlighted that Ghanaian businesses are grappling with a significant increase in borrowing costs, mainly due to the high Monetary Policy rate.

    It emphasized that the elevated interest on commercial loans, averaging 32.0% in 2023, compounds the already high utility tariffs and excessive taxes, making the cost of doing business in Ghana exceptionally high.

  • BoG gives nod to recapitalization plans for underfunded banks – IMF reports

    BoG gives nod to recapitalization plans for underfunded banks – IMF reports


    The International Monetary Fund’s (IMF) “2023 Article IV Consultation” Staff Report reveals that the Bank of Ghana has given approval to the recapitalization proposals submitted by undercapitalized banks.

    These banks are mandated to inject a minimum of one-third of the required capital annually over the next three years, concluding in 2025, to achieve a 13.0% Capital Adequacy Ratio without regulatory forbearance.

    Currently, a majority of banks have already submitted their recapitalization plans.

    “The BoG [Bank of Ghana] will initiate corrective measures by end-March 2024 against banks that fail to uphold these recapitalisation requirements (new structural benchmark). In the short term, the BoG [Bank of Ghana] stands ready to deploy contingency measures if needed to ensure financial sector stability.

    The Bretton Wood said this move will ensure that banks’ capital needs have been estimated based on reasonable forward-looking assessments of losses from government debt restructuring and increases in Non-Performing Loans.

    NIB’s insolvency plan to be addressed by end-2024

    “The authorities [government, BoG] also aim to address the legacy issues of the financial sector and strengthen the governance of state-owned banks. The remaining tasks from the earlier sector cleanup include addressing the challenges of NIB and long-standing undercapitalization of several special deposit taking institutions (SDIs)”.

    The report states that both the Bank of Ghana (BoG) and the Ministry of Finance will collaboratively formulate and initiate, by the end of March 2024, a credible, comprehensive, and cost-effective plan aimed at addressing the insolvency challenges of the National Investment Bank (NIB) by the end of 2024.

    In order to mitigate the accrual of additional risks until the completion of this plan, the Staff Report of the Fund indicates that the BoG is dedicated to strengthening the monitoring of NIB and imposing appropriate constraints on critical risk areas.

    The report emphasizes that the systematic resolution of other Specialized Deposit Taking Institutions and fund management firms, along with the settlement of outstanding payouts to clients of Securities and Exchange Commission (SEC)-licensed fund management companies, will be concluded by the conclusion of 2024. The government’s payouts will be executed through a burden-sharing approach to minimize fiscal costs.

    Furthermore, the authorities are committed to developing a strategy ensuring that state-owned banks adopt sound governance principles, effective business models, and robust risk management systems to secure their long-term viability and facilitate an organized government exit.

  • Ghana received $16.6bn from total exports in 2023 – BoG

    Ghana received $16.6bn from total exports in 2023 – BoG

    The Bank of Ghana has indicated that Ghana received a whooping US$ 16.6 billion at the end of 2023.

    This was contained in the Central Bank’s Summary of Macroeconomic and Financial Data for January 2024.

    According to the report, the country as of December 2023 had received $16.6 billion from its exports compared to the estimated 14 billion dollars it spent on importing goods for the same period.

    This indicates an increase from the 14.9 billion dollars recorded for exports and 12.8 billion dollars for imports in November last year. 

    On a year-on-year basis, the value of total exports was however a decrease from the $17.4 billion recorded in the same period last year.

    Per the data from the Central Bank, the difference between the country’s exports and imports within the period under review resulted in a positive trade balance of $2.6bn.

    The positive trade balance accounted for 3.4% of GDP, an improvement on the 2.7% of GDP recorded in the month of November 2023.

    Commodities such as gold and cocoa contributed $7.6bn and $2.1bn respectively to the total export value.

    Oil exports accounted for $3.8bn of total exports value with other exports accounting for the remaining $3bn.

    On the imports side, oil and non-oil imports accounted for $3.6bn and $7.7bn of total import value.

    Growth in exports contributed to an increase in the country’s the gross international reserves which stood at $5.1bn at end-October 2023 from $4.9bn at end-September 2023.

    Growth in gross international reserves led to a marginal increase in the country’s import cover from 2.3 months in September to 2.4 months in October.

    Net International Reserves of the country however stands at $2.1bn, also a marginal increase from the $2bn recorded in September 2023.

  • Reduce policy rate to help struggling businesses boost production – BoG told

    Reduce policy rate to help struggling businesses boost production – BoG told

    The Ghana National Chamber of Commerce and Industry (GNCCI) is advocating for a reduction in the policy rate to support business growth.

    The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) is currently meeting to review developments in the Ghanaian economy, and an announcement on the policy rate is expected by Monday, January 29, 2024.

    In a statement, the GNCCI highlighted that Ghanaian businesses are grappling with a significant increase in borrowing costs, mainly due to the high Monetary Policy rate.

    It emphasized that the elevated interest on commercial loans, averaging 32.0% in 2023, compounds the already high utility tariffs and excessive taxes, making the cost of doing business in Ghana exceptionally high.

    “The costly business environment has contributed to a significant decline in production, the collapse of many businesses; the rise in non-performing loans; the relocation of businesses to other African countries, and as a whole led to the significant decline in the growth of the private sector and the economy. From a GDP [Gross Domestic Product] growth rate of 6.1% in the 4th quarter of 2021 to 2.0% in the 3rd quarter of 2023”, it mentioned.

    “As the representative body of the business community in the Country, the GNCCI is very mindful of issues that specifically impact the operational costs of businesses. With the 116th Monetary Policy Committee (MPC) meeting ongoing to discuss the policy rate adjustments, the GNCCI emphasizes the need for the review to favor the growth of businesses. The GNCCI urges the MPC to take into account the cost-push impact of a high policy rate”, it added.

    Considering the relative stability in the forex market and the substantial decline of 30.4% in domestic inflation from 53.6% in January 2023 to 23.2%, implying that the Real Interest Rate in Ghana is now positive, the GNCCI proposed that the Bank of Ghana lowers the existing policy rate.

    “We believe the reduction will induce commercial banks to also lower their lending rate to enable businesses to access funds for expansion in the short to medium term,” the Chamber added.

    “As Ghanaian businesses endeavor to actively engage in the AfCFTA, the cost of borrowing will play a crucial role in defining their competitiveness. With Ghana’s interest rate being the highest in Africa, we urge the Monetary Policy Committee to lower the policy rate. In the chamber’s estimation, anchored on the stability in the forex market, decline in inflation and the projected GDP growth rate of 2.7%, we propose a reduction of not less than 2 percent or 200 basis points in the policy rate for the start”, it continued.

    The GNCCI concluded that it will continue to engage stakeholders in the public and private sectors to ensure a thriving business environment that delivers shared growth and prosperity for all.

  • I’m totally disgusted! – Mahama fumes as he accuses BoG of illegally printing billions of cedis

    I’m totally disgusted! – Mahama fumes as he accuses BoG of illegally printing billions of cedis

    Former President John Dramani Mahama has called upon the minority caucus to closely scrutinize the activities of the Bank of Ghana concerning the recent release of the second tranche amounting to $600 million by the International Monetary Fund (IMF). 

    This disbursement follows the successful completion of the first review of the $3-billion three-year extended credit facility, approved by the Bretton Woods institution in May 2023.

    In his appeal to the minority caucus for prudent utilization of the IMF funds by the government, Mr Mahama didn’t mince words as he criticized the Bank of Ghana, alleging that it has worsened Ghana’s economic challenges by introducing a surplus of newly-printed banknotes into the financial system.

    While emphasizing the need for the government to exercise responsibility in handling the recently acquired IMF funds, Mahama directed a pointed critique at the central bank. 

    According to him, the alleged flooding of the system with freshly minted currency by the Bank of Ghana has contributed to the exacerbation of the economic difficulties faced by the nation.

    Mr Mahama said “under normal circumstances, the release of $600 million by the International Monetary Fund (IMF) to the government of Ghana should provide relief to the already-overburdened and suffering Ghanaian.”

    “It is, however, evident that Ghanaians will continue to suffer as long as Akufo-Addo, Bawumia and the NPP remain in office”, he posted on Facebook.

    Mr Mahama urged “the outgoing NPP government to be cautious, responsible and judicious in utilising the IMF $600 million and other funds that may be made available to Ghana from the World Bank and other development partners”.

    The former President declared that his party will closely monitor the government’s handling of the recently acquired funds. 

    “I have already encouraged the NDC minority in parliament to ensure strict oversight on both the government and not to take their eyes off the Bank of Ghana that illegally printed billions of cedis and aggravated our economic situation”.

    “On my part, I will, from time to time, continue to engage the Ghanaian public about my vision to build the Ghana we want and how we will work together to create well-paying jobs through my 24-hour economy policy and other pragmatic initiatives”.

    Last year, the Cassiel Ato Forson-led minority caucus marched in demand for the resignation of the Governor of the Bank of Ghana, Dr Ernest Addison as well as his two deputies.

    “The purpose of this protest is to express our revulsion at the illegal printing of money (about GHS80 billion) between 2021 and 2022 by the BoG for the corrupt Akufo-Addo/Bawumia/NPP government which led to a hyperinflation rate of 54.1 per cent in December 2022”, Dr Ato Forson said in a statement at the time.

    The caucus claimed GHC22.04bn of that amount was used by the BoG to support the government’s budget without parliamentary approval.

    “This singular act of BoG”, he emphasised, “has negatively impacted livelihoods and businesses and pushed about 850,000 Ghanaians into poverty in the year 2022 alone”.

    The caucus said as representatives of the people, it was “totally disgusted by the crass mismanagement and reckless mishandling of the affairs of the Bank of Ghana,which resulted in a gargantuan loss of GHS60.8 billion and a negative equity of GHS55.1 in 2022 with its attendant hardships on Ghanaians”.

    The Bank of Ghana, however, denied the allegations.

    In a statement issued on Tuesday, 26 July 2022, the central bank said Dr Forson’s claim could not be farther from the truth.

    The bank observed that Dr Forson’s reaction was in response to the 2022 mid-year fiscal policy review which was presented to parliament by the Minister of Finance on Monday, 25 July 2022.

    It explained: “In Appendix 2A of the Mid-Year Fiscal Policy Review document, under Financing, out of the total financing of GHC28.12 billion, an amount of GHC22.04 billion was captured under BoG”, adding: “This is the amount being referred to by the Ranking Member as BoG’s printing of currency to support the budget”.

    Concerning the loss and negative equity posted by the central bank, Governor Addison later explained at a press conference that it was important for Ghanaians to appreciate that the GHS60.8 billion loss recorded by the nank in 2022 “were technical losses arising from the haircut and the application of accounting standards (in particular, IFRS 9) to estimate expected credit losses over the tenor of the Government debt held by Bank of Ghana”.

    He told journalists on Monday, 21 August 2023: “It is not money lost by the Bank of Ghana through its operations in 2022”.

    Rather, he said “one should look at this as a reflection of the total cost of the economic and social crisis the country faced over the years and an attempt to resolve a major structural problem of the Ghanaian economy.”

    Also, Dr Addison said this is not the first time the central bank has recorded negative equity.

    “I must also add that, if one takes time to go through historical financial statements of the Bank of Ghana, you will realise that this is not the first time that the Bank has gone into negative equity”, he stated.

    He reported: “During the early years of structural adjustment, very large exchange rate depreciations led to revaluation lossesthat drove the Bank into negative equity”.

    Indeed, Dr Addison mentioned, “anytime the economy faces major challenges, the Bank of Ghana balance sheet suffers, and the equity position moves into negative territories”.

    “You will recall that in 2017 and 2018, the Bank of Ghana incurred similar negative equity from the impairment of legacy liquidity support loans granted in 2015 and 2016 to insolvent banks, which our external auditors impaired due to the doubtful prospects of recovering from those insolvent banks”.

    “The Bank of Ghana, however, recovered and generated profits throughout the period 2019 to 2021”, he pointed out.

    “It is worth noting that Central Banks are not commercial banks”, he highlighted, stressing: “Bank of Ghana’s current financial condition will not impact negatively on the operations of the Bank”.

    He said the IMF Technical Assistance mission validated this conclusion before the necessary decisions were taken.

    “In their opinion, the Bank of Ghana was policy solvent and would remain so, as it had enough income to cover monetary policy operational costs”, Dr Addison said.

    The Bank of Ghana, he indicated, “had sufficient capital amounting to about 15 per cent of its total liabilities”, noting: “Its recommendation was for the Bank to retain all profits and a reassessment should be made in the year 2027”.

    “The Bank will also manage to reduce its operational costs during this period”, he promised.

    In all these, Dr Addison said the Bank of Ghana has “acted within the applicable laws”. He also denied claims that the central bank has been bankrolling the government annually.

    “It is not true that Bank of Ghana has been providing financing for the Government every year. There has been zero-financing in 2017, 2018, 2019 and 2021. The Bank of Ghana has only had to support in the pandemic year of 2020 and the crisis year of 2022. The Bank of Ghana Act (612), as amended, limits financing of Government to 5 per cent of previous year’s tax revenue”, Dr Addison reiterated.

    “This provision in the law has been adhered to since I took office in April 2017. Between 2017 and 2019, in addition to the requirements of the Bank of Ghana Act (612), as amended, the Bank signed a Memorandum of Understanding (MOU) with the Ministry of Finance to even impose a tighter restriction of zero-central bank-financing, and this was observed strictly, even though MOUs are not legally binding. Between 2012 and 2015, the Bank of Ghana provided overdraft to finance government and COCOBOD every year. And there was neither a pandemic nor a global economic crisis”.

    “When Ghana was hit with the COVID-19 in 2020, Section 30(6) of the Bank of Ghana Act (612), as amended, was triggered, and as indicated earlier, the Bank purchased GHC10 billion worth of Covid-19 bonds to support the economy through the pandemic”.

    “This was done within the applicable laws governing the Bank of Ghana. When section 30 (6) of the Bank of Ghana Act (612), as amended, is triggered, it, allows the Governor, the Minister for Finance and the Controller and Accountant General to agree on a new limit of central bank financing”.

    “The law further says that the Minister of Finance will then have to inform parliament and the Minister has since informed parliament as part of his briefing to update Parliament on the IMF programme and status of the Domestic Debt Exchange”.

  • E-Cedi to be launched before 2026 – BoG

    E-Cedi to be launched before 2026 – BoG

    Governor of the Bank of Ghana, Dr. Ernest Addison, has provided reassurance to the public, affirming that the launch of the highly-anticipated e-Cedi, the country’s digital currency, will occur before the conclusion of 2026.

    While acknowledging the advancements in the development of the e-Cedi, the Governor pointed out that the delay in its launch is attributed to the economic dislocation caused by the events of 2022.

    “Probably, it could be earlier than that. As I mentioned, we have reached a point of trying to understand the commercials a little bit more,” said Dr. Addison during an interview held on the side-lines of the Eastern Caribbean Central Bank (ECCB) 40th anniversary and Central Banking Autumn meetings in Saint Kitts and Nevis in November 2023.

    He further explained that after successful completion of the pilot phase in Sefwi Asafo, discussions on the e-Cedi’s commercial aspects were initiated. However, the COVID-19 pandemic’s onset and resulting economic crisis shifted priorities – leading the central bank to temporarily halt the digitisation process.

    The pilot was an essential step in the country’s plan to enhance financial inclusion and promote digitalisation. Despite the setback caused by economic challenges, the central bank remains optimistic about the e-Cedi’s future.

    In December 2023, the Bank of Ghana announced winners of the country’s first ever e-Cedi hackathon. The e-Cedi Hackathon reflects the fintech community’s enthusiastic engagement. The competition encouraged innovation and partnerships around the central bank’s new digital currency. Of 88 initial applicants, 10 finalists were selected to showcase their e-Cedi solutions; covering areas such as agriculture, government payments, business transactions, taxation and more.

    Dr. Addison provided insights into the e-Cedi pilot’s status, emphasising its offline operational capacity. “The central bank did a lot of things due to favourable conditions at the end of 2019,” he explained. The pilot, conducted in some of the country’s remotest parts, featured an offline version of the digital currency to ensure usability in areas with limited connectivity infrastructure.

    “The Ghanaian population is used to mobile money, so the concept of a digital currency was easily absorbed – it’s not an alien concept to people,” Dr. Addison highlighted. Positive results from the pilot, wherein participants were given a certain value to spend within their locality, demonstrated the e-Cedi’s potential success.

    While the economic challenges of 2022 prompted a reevaluation of priorities, Dr. Addison emphasised that progress toward launching the e-Cedi is ongoing. The central bank’s adoption of a retail token-based CBDC, stored locally on various devices, aims to replicate traditional attributes of physical cash while incorporating additional functionalities.

    “The e-Cedi’s successful deployment could have a significant impact on the country, helping to augmentthe government’s digitalisation agenda and foster financial inclusion,” Dr. Addison stressed. The Bank of Ghana seeks to reinforce its role as an active regulator and facilitator of a digital economy, aligning with the nation’s evolving financial landscape.

    As Ghana advances in its digital currency efforts, the e-Cedi hackathon served as a crucial milestone, fostering innovation and supporting the nation’s goals of financial access and digital transformation. With assurances from the Bank of Ghana’s Governor, anticipation builds for the e-Cedi’s official launch – which is expected to bring transformative changes to the country’s financial ecosystem.

  • Bank of Ghana procures more than 432k ounces of gold

    Bank of Ghana procures more than 432k ounces of gold

    Bank of Ghana (BoG) secured a substantial 432,358 ounces (oz) of gold from members of the Ghana Chamber of Mines (GCM) by mid-December 2023 through the Domestic Gold Purchase Programme (DGPP) and a voluntary foreign exchange sales initiative.

    This constitutes approximately 84 percent of the Bank’s targeted acquisitions for 2023 and represents nearly 15 percent of the planned output by GCM members for the same year, as reported by the Ghana Chamber of Mines (GCM).

    The primary objective of the Bank of Ghana’s gold acquisitions is to mitigate the depreciation of the local currency and its subsequent impact on inflation.

    The Chamber’s president, Joshua Mortoti, noted that this is in line with the commitment of GCM’s producing members to help government’s efforts to speed-up the economy’s recovery.

    The Chamber, he added, is in the process of collating members’ planned gold sales to BoG for 2024, and will facilitate the signing of bilateral agreements between the central bank and mining companies after targets are finalised.

    Mr. Mortoti was speaking at a breakfast meeting with the Minister of Lands and Natural Resources – organised by the Chamber in Accra, and also stated that: “In the same vein, members continued to voluntarily give the Bank of Ghana first option to buy forex they intend to sell for the local currency”.

    The DGPP was announced in 2021 by government to enable BoG have the first right of refusal for all gold mined in the country. It is part of the central bank’s plan to build gold reserves to stabilise the cedi.

    The decision was also against a background that the central bank had only 8.7 tonnes of gold reserves at end-2021, despite the country being one of the world’s leading gold producers.

    Announcing the policy decision of the time, Vice President, Dr. Bawumia Mahamudu said: “The central bank will purchase the gold at world market prices and mining companies will export the portion that is not purchased by BoG. Ultimately, once we accumulate enough gold; future borrowing and our currency can be backed by gold. This will stabilise the cedi long-term.

    “We must also deepen our industrialisation through value addition to gold; even though Ghana has two gold refineries, neither has London Bullion Market Association (LBMA) certification. This limits our full participation in the gold value chain. We will urgently work toward LBMA certification for our refineries over the next few years,” he added.

    Also speaking at the breakfast meeting, Minister of Lands and Natural Resources Samuel Abu Jinapor said he continues looking forward to support from the Chamber for various interventions being implemented by government – including value addition, local content and participation, as well as development of mining communities.

    He said: “Together, we will achieve the President’s vision to make Ghana the mining hub of Africa.

    “The ministry remains fully committed to effective and efficient utilisation and management of our country’s natural resources, anchored on transparency, integrity and utmost good faith for the Ghanaian people’s benefit,” he added.

  • BoG has failed us, Addison’s “hooliganistic appetite” for restricted tendering is to blame – Ablakwa

    BoG has failed us, Addison’s “hooliganistic appetite” for restricted tendering is to blame – Ablakwa

    Member of Parliament for North Tongu, Sam Okudzeto Ablakwa, has made public documents shedding light on the government’s spending patterns during the 2020 election year.

    In a Facebook post on January 17, Mr. Ablakwa shared a document from the Public Procurement Authority (PPA) detailing the procurement process for the construction of a 50-bed guest house in Tamale.

    The document indicated that approval was granted to the Bank of Ghana to employ single sourcing, engaging Messrs De-Simone Limited for the final works on the project at a cost of GHC139 million.

    Mr. Ablakwa raised concerns about what he perceives as an unhealthy inclination toward restricting tendering by the Governor of the Bank of Ghana, Dr. Ernest Addison.

    “The fresh documents in my possession show that Dr. Addison appears to have a hooliganistic appetite for single-source and restricted tendering so much so that NONE of the procurements under his watch have been competitive,” Mr Ablakwa wrote.

    He added, “The venerable Togbe Afede XIV was obviously right when he wrote in his latest op-ed that the BoG has failed us.”

    He recalled the times when President Akufo-Addo during his time in opposition condemned “single source procurements and argued that it was a veritable conduit for corruption.”

    “Without principle and scruples, they are now the all-time champions of grand single source procurements.

    “It is most instructive to note that payments for other infamous wasteful Akufo-Addo-legacy projects such as the US$450million National Cathedral fiasco and the US$222.7million BoG Head Office all commenced during the electioneering campaign of 2020,” he added.

    “The Akufo-Addo/Bawumia single-source-procurement-regime will be planning similar “lootocratic” schemes,” he warned.

  • Fitch Solutions predicts a reduction in policy rate by 8%, bringing it down to 22% in 2024 by BoG

    Fitch Solutions predicts a reduction in policy rate by 8%, bringing it down to 22% in 2024 by BoG

    Fitch Solutions predicts that the Bank of Ghana will initiate a significant monetary easing cycle, reducing the policy rate by a total of 800 basis points to reach 22.00% by the close of 2024.

    This projection is based on a considerable moderation of headline inflation, as indicated by the UK-based firm.

    “With inflation moderating substantially through 2024, we anticipate that the BoG will embark upon a sizeable monetary easing cycle, cutting the policy rate by a cumulative 800bps to 22.00% by year-end.”

    Fitch Solutions noted that the impact of interest rate adjustments on the real economy typically requires around 12 months due to the lag in monetary transmission mechanisms.

    Consequently, the firm believes that the Bank of Ghana‘s dovish monetary policy stance is improbable to lead to a significant rise in real loan growth. This is particularly evident as real loan growth has persisted in contractionary territory from January to August 2023.

    The Bank of Ghana increased the benchmark policy rate to 30.00% in 2021, a rise of 1,150 basis points. Access to corporate credit has been hampered as a result.

    In the meantime, the Bank of Ghana’s Monetary Policy Committee will review economic developments during its 116th regular meeting, which will take place from Tuesday, January 23 to Friday, January 26.

  • Protracted tightening of policy rate projected until inflation firmly settles

    Protracted tightening of policy rate projected until inflation firmly settles

    In response to escalating geopolitical tensions impacting oil prices and a year-end consumer inflation rate of 23.2 percent, the Bank of Ghana Monetary Policy Committee (MPC) is poised to maintain its ‘tighter-for-longer’ policy stance until inflation is securely anchored. 

    This strategic move reflects the central bank’s commitment to navigating economic uncertainties and fostering stability in the face of external pressures.

    In the year 2023, consumer inflation witnessed a significant decline, registering a notable drop from 30.4 percent to close the year at 23.2 percent. 

    This surpassed both the government’s target of 31.3 percent and the IMF‘s central forecast of 29.4 percent. 

    Despite this positive trend, inflation persists at elevated levels when compared to the medium-term target of 8±2 percent.

    The most recent projections from the central bank signal an ongoing disinflationary process, backed by a resilient monetary policy, a stable exchange rate, and the effects of base drift. 

    The central bank underscores its dedication to vigilance in closely monitoring potential risks that could impact the ongoing disinflation process.

    Addressing recent occurrences since the last committee meeting, increased tensions in the Middle East and disruptions in the Suez Canal present additional challenges. According to a Reuters report, air and sea strikes by the United States and Britain on Houthi targets in Yemen led to a 3 percent surge in oil prices. 

    The Suez Canal, responsible for approximately 12 percent of global trade, has already experienced weeks of disruptions, causing a 1.3 percent decline in global trade from November to December 2023 and impacting businesses worldwide.

    Brent crude futures were up US$2.21, or 2.9 percent, at US$79.62 a barrel at 13.50 GMT; while U.S. West Texas Intermediate crude futures climbed US$2.13, or 3 percent, to US$74.15.

    The main transmission conduits for these global uncertainties will be through energy prices, exchange rates, inflation and interest rates, especially if the Middle East conflict expands to involve Iran.

    Gita Gopinath, First Managing Director-IMF, warns central banks about the potential challenges in addressing inflation trajectories, especially in the face of financial stresses. She emphasises the need for vigilance and preparedness in navigating the complex economic landscape, considering the possibility of a stagflationary environment.

    “If inflation proves to be stubborn or escalates due to unforeseen shocks, it may necessitate higher interest rates for an extended period – or even lead to rate increases. This could result in a situation where there is an inflation problem while simultaneously experiencing a significant slowdown in economic growth. Such a scenario is known as a stagflationary environment, and it should not be dismissed as a possibility. Therefore, there is a need for vigilance and preparedness in addressing potential challenges in this complex economic landscape,” she said.

  • Review trade rules – BoG urged

    Review trade rules – BoG urged

    Chief Executive Officer (CEO) of FBNBank, Victor Yaw Asante, has urged the Bank of Ghana (BoG) to undertake a comprehensive review of certain trade and documentation regulations. 

    As the financial sector continues to evolve rapidly, Mr Asante emphasized the need for these rules to be adapted to stay relevant in the dynamic financial landscape.

    Identifying particular regulations requiring reconsideration, he specifically pointed to the trade threshold. 

    He stressed that certain rules, including this one, were established many years ago and should be recalibrated to align with present-day demands and trends.

    “With the trade threshold, for example, you can’t transfer more than US$50,000 without full documentation and so on. Things have changed. I think the central bank has squeezed us a little bit. What it needs to do is to re-examine the rules around trade and trade documentation, because it is becoming a big issue. Some of the rules were set many years ago and we think it is time for the threshold to be re-examined, and that will be key,” he suggested.

    Victor Yaw Asante

    He made these remarks in response to a question from B&FT about the reforms he envisions for the sector in 2024, during the bank’s annual health workshop in Accra.

    He additionally pointed out that alterations to the primary reserve rules, allowing a banking institution to hold primary reserve in the currency it possesses, carry implications for the sector.

    Mr. Asante noted that while the central bank is implementing some strategies to put people in check, those same changes are forcing others to try things outside the banking system.

    “The central bank is doing very well to try and put a firm grip on how people misbehave, but sometimes in doing that people are also driven underground. So, rather, people try to do things outside the banking system, and that is not what we want,” he added.

    While calling for reforms, he commended the BoG – regulator of the financial sector – for the good work done so far and the constant dialogue with regulated institutions, adding that: “We will continue working with the central bank and other relevant bodies to have a better 2024”.

    Additionally, he stated that despite challenges faced by the financial sector in 2023 it remains largely sound – with most banks recording growth.

    “For starters, government has done a pretty good job of managing the challenges, although other issues are still pending. I think the big one was to try and get the IMF emergency facility. Once those things were managed, it meant that the macros became slightly more predictable; and therefore, we were able to return to normal business,” he explained.

    Mr. Asante concluded that the sector’s prospects for 2024 are better than in the previous year: “I expect to see a return to growth for most businesses in 2024, and banks in particular – a bit more confidence in our ability to lend and support our customers”.

    Away from the central bank, Mr. Asante advocated a paradigm-shift in the economy’s structure, emphasising the importance of prioritising domestic production over imports. This, he explained, is very key to strengthening the cedi and creating job opportunities for the country’s youth.

  • BoG advised to scale-up your forex buffers to withstand shocks on cedi  

    BoG advised to scale-up your forex buffers to withstand shocks on cedi  

    Economic Analyst at Databank Research, Kweku Arkoh-Koomson, is advocating for the Bank of Ghana to enhance its forex buffers to withstand potential shocks, ensuring the continued stability of the cedi.

    He asserted that establishing a sustainable reserve will empower the Central Bank to intervene in the face of seasonal shocks that could impact the performance of the local currency.

    His statement comes in response to a forecast by IC Research indicating that the cedi might experience an approximate 8.4% depreciation against the US dollar in the retail market this year.

    Speaking in an interview, Mr Arkoh-Koomson urged the Bank of Ghana to collaborate with the Development Bank Ghana to invest more in value-addition advancement to improve the country’s export earnings.

    “It is very crucial indeed to have a very good FX buffer because it makes you more resistant to external shocks and shocks obligating from financing external debts as well. It is quite crucial to build this sustainable reserve”.

    Meanwhile, the Ghana cedi traded unchanged against the US dollar last week at a mid-rate of GH¢12.18/$ on the retail market. The same story emerged on the interbank market.

    However, it shed 0.49% and 0.56% week-on-week against the pound and euro respectively.

    The foreign exchange market also experienced a decrease in liquidity levels last week as the Bank of Ghana’s supply-side intervention took a pause. But corporate demand remained elevated after the yuletide.

    While awaiting the meeting outcome, a positive conclusion will pave the way for Ghana to receive its expected inflows of $1.15 billion from the International Monetary Fund and World Bank. This will potentially ease the pressure on the cedi.

  • BoG Governor says Central Bank had zero financing prior to COVID-19

    BoG Governor says Central Bank had zero financing prior to COVID-19

    Governor of the Bank of Ghana, Dr Ernest Addison, has highlighted the steadfast fiscal approach adopted during his administration. Despite the legal provision allowing up to 5% of the previous year’s tax revenue to finance the budget, Dr. Addison confirmed that there was no budget financing from 2017 to 2019 and 2021. This assertion underscores the commitment to a responsible fiscal strategy during the specified years.

    Dr Ernest Addison emphasized that the adherence to a prudent fiscal approach has yielded positive outcomes, contributing to the lowering of inflation, reduction of the policy rate, and fostering growth during the initial three years of his term. 

    This strategic financial management has played a pivotal role in shaping the economic landscape under Dr. Addison’s leadership at the Bank of Ghana.

    Highlighting the impact of the COVID-19 crisis, Dr. Ernest Addison acknowledged the challenges it posed, particularly the escalation of debt levels and the necessity for restructuring. This recognition underscores the complexities faced by financial institutions during the global pandemic and emphasizes the need for adaptive measures.

    Dr. Ernest Addison discloses a significant shift in strategy, indicating that the Bank of Ghana opted for monetary financing for the first time. This decision aligns with the approach adopted by numerous central banks globally, reflecting the unprecedented challenges presented by the circumstances, particularly the impact of the COVID-19 crisis.

    He said this was a difficult decision, but it was necessary to support the government’s COVID expenditures.

    “We had some good discussions going into it. The Finance Minister [Ken Ofori-Atta] went to Parliament and requested for a suspension of the Fiscal Responsibility Act due to the pandemic. This enabled us to trigger emergency provisions in the Bank of Ghana Act to provide exceptional financing for the government budget. And that’s what we did.”

    “For me, it was a big reawakening, because I did not foresee that the Central Bank would be drawn into budget financing. But, given global developments, especially with central banks in advanced economies, it seemed like monetary accommodation of fiscal policy to meet COVID expenditures had become part of the norm.”, he noted.

    Dr Ernest Addison also added that the International Monetary Fund also gave additional SDRs, which are central bank assets, to help governments cope with the pandemic.

    He explained this meant the Bank of Ghana had to lend these resources to the government, along with invoking the emergency provisions in the Bank of Ghana Act.

    The Governor admitted this was hard for him, but it was eased by the government’s successful issuance of nearly $3 billion in debt in 2021.

    “Even in 2021, the government was able to successfully issue nearly $3 billion in debt. That helped to ensure the central bank didn’t have to provide financing,” he said.

  • You have failed us – Togbe Afede XIV tells Bank of Ghana

    You have failed us – Togbe Afede XIV tells Bank of Ghana

    The revered Agbogbomefia of the Asogli State and former President of the National House of Chiefs, Togbe Afede XIV, has taken a bold stance, declaring that the Bank of Ghana has fallen short in its responsibilities.

    The self-congratulatory tone of Bank of Ghana (BOG) officials was notable as they highlighted a significant decline in year-on-year inflation. In November 2023, inflation dropped to 26.4%, showcasing a notable improvement from 35.2% in October 2023 and a substantial decrease from the high of 54.1% recorded in December 2022.

    Anticipating this trend, I reflected, given the considerable price hikes and exchange rate depreciation observed in the corresponding periods of 2022. The intricacies of year-on-year inflation figures lie in their susceptibility to significant influences from events that occurred a year prior. This inherent characteristic explains the paradox where year-on-year inflation might surge in a specific month, even if the overall price levels have decreased during that period, and conversely, it could drop despite a rise in the general price level.

    You cannot describe what happened to prices and exchange rates towards the end of 2022 as “a blip” when the effects are still with us. The markets simply adjusted to the rot in the system. A return to the relatively lower inflation rates of the past does not mean prices have become lower. A year-on-year inflation rate of 26.4% in November 2023 is not worthy of celebration. Zambia and Kenya, exposed to the same global shocks, recorded 12.9% and 6.8%, respectively. And the US dollar is currently trading at more than 150% of its price (cedis) in June 2022.

    But I am glad that Bank of Ghana (BOG) has finally bitten the bullet, accepting that it does not have to set its policy rate above “past inflation”. After decades of insisting that its policy rate must be fixed above year-on-year changes in the consumer price index (CPI) to ensure “positive real returns” to investors, BOG had over the past several months, following the collapse of our economy, kept their policy rate below the year-on-year changes in the CPI. Maybe it was the case that they just could not set the policy rate above the recent hyperinflation rates.

    In my December 2022 article, “Our Self-Inflicted Monumental Economic Crisis”, I presented my thoughts on the reasons why we, Ghanaians, find ourselves in this undeserved economic mess, given our massive human and material resource endowments.

    The Ghana we have today is obviously not what our founding fathers dreamt of. We have failed woefully but have pretended otherwise. Instead of giving hope, our leaders have created a frightening sense of helplessness among the populace, especially the youth.

    As I said earlier in December 2021, during a courtesy call by the Speaker of Parliament, Ghana would have filed for bankruptcy if it were a company. This was effectively what we did when we went back to the IMF for bailout and implemented the Domestic Debt Exchange Programme (DDEP). We eventually defaulted on our debts. Holders of Government bonds suffered massive losses, and the outlook remains dim.

    We have been brought to the brink by despicably dishonest, corrupt, reckless, arrogant, and divisive leadership. We are also victims of bad fiscal and monetary policies. We owe our relative peace and stability to the resilience and patience of Ghanaians, and I pray that we remain so. I know what suffering is like, and that is why I will continue to share my thoughts on our development challenges.

    AN ECONOMY IN SHAMBLES

    Very alarming, as I wrote in my December 2022 article, is the fact that we have piled on so much debt, and are now Africa’s most indebted country, yet we still lack the basic socio-economic infrastructure required for development – good roads, hospitals, schools, etc. Making matters worse, are the massive judgment debts, the results of greed and recklessness, staring us in the face.

    The dollar had been on the loose, gaining almost 200% over the cedi since 2017. The cedi is still under pressure notwithstanding our positive trade surplus in recent times. Total exports at the end of October 2023 stood at USD13.4 billion. Compared to the total import value of $11.3 billion, the result was a positive trade balance of about $2.1 billion.

    Inflation, as I have already said, is still high, at 26.4%, and business failures, joblessness and poverty levels are worse than ever. That is why too many of our younger compatriots are desperately on the lookout for ways out of our potentially rich but poor country.

    We are victims of predatory economics, where policies or decisions were presented to us well-packaged, only for us to realise during implementation that they were designed to benefit a privileged few, as we saw with some of the COVID-19 initiatives and in the ill-fated award of Electricity Company of Ghana to PDS Ghana Ltd. We are also victims of a constitution that protects even our worst leaders. The result is the annoying and arrogant display of “conspicuous consumption” by our leaders and their cronies.

    I hold the view that poverty is not God’s desire for man. So, I remain optimistic that we can turn our fortunes around and make a paradise out of our beautiful country, maximise the welfare and happiness of every Ghanaian so that we can enjoy genuine sustainable peace and unity and make it unnecessary for the youth to embark on hazardous journeys in search for greener pastures.

    But we need, first, to identify and understand the causes of our predicament. So much has been said about corruption at a scale we could never have imagined, our battered reputation, bad fiscal policy, lawlessness, divisive tribal politics, our weak institutions, our attitudes, etc. But, as I have said many times, one segment of economic policy that has escaped scrutiny over the years is the Bank of Ghana’s monetary policy.

    THE CHICKENS HAVE COME HOME TO ROOST

    Recent events, including the Government’s inability to service its debt obligations, have finally exposed BOG. Over the past several months, BOG maintained its policy rate below the year-on-year inflation rate, departing from its previous approach. And the Bank recently announced massive losses in 2022, totalling GHS60 billion, and a year-end negative net worth of GHS55 billion, making it technically bankrupt. This is unprecedented in our history. The loss, equal to 10 % of our 2022 GDP of GHS606.82 billion (USD72.24 billion at the average 2022 cedi-dollar exchange rate of 8.4:1), is one of the largest one-year losses ever recorded by a central bank.

    It is an irony that BOG finds itself in this mess after it only recently aided the collapse of several “poorly managed” local banks, savings and loans companies, microfinance institutions, finance

    houses, and fund management companies, at a cost of GHS20 billion, when an estimated GHS9 billion could have kept them in operation. Such a wasteful approach to cleaning up the financial sector could only have been pursued by an organization that thought it had too much money.

    In the competitive world of private enterprise, where standards and consequences of failure are exacting, BOG would have gone under. Details of the 2022 annual report reveal budgeted and actual expenditures that do not look like those of a struggling country’s central bank: USD250 million for a new head office, equivalent to 0.35% of our GDP; GHS97.4 million for travel; GHS131 million for motor vehicle maintenance/running; GHS32 million for communication; GHS67 million for computers; GHS336.9 million for currency issue expenses (currency in circulation amounted to GHS40.73 billion); and GHS8.6 million for directors.

    And they rewarded themselves very well, increasing their salaries by a whopping 68%! Personnel costs amounted to GHS1.6 billion. With a total of 2,203 employees, this means an average of a colossal GHS726,282 per annum or GHS60,523 per month per employee. Staff loans amounted to GHS1.247 billion, an average of GHS566,818 per employee. I still cannot believe BOG staff are living in a different world. Unlike in the case of the Bank of England (BOE), with a labour force of 4,793, BOG’s financial statements do not disclose the remuneration of individual executives.

    BOG, guilty of the poor business practices it had accused the collapsed banks of, had obviously been misled by the spurious profits it reported in previous years to embark on the recklessness depicted above. I call them “spurious profits” because they included revenues (interest payments due from the Government) that were never going to be realised. The Bank reported a profit of GHS1.57 billion (USD270 million) in 2020. Comparatively, the Bank of England (BOE) made a profit of only GBP57 million (USD76 million) in 2020/21. The size of the Ghanaian economy was USD72 billion, and that of the UK was USD2.7 trillion. Thus, BOG reported almost 4 times as much profit as BOE, even though the UK economy was 40 times that of Ghana.

    It is surprising that the BOG, the Government’s bankers, had been oblivious to the obvious possibility of the Government defaulting on its obligations, and failed to make appropriate provisions. It is also surprising that the external auditors appeared not to have noticed the poor quality of debt owed to BOG by the Government. The BOG directors were similarly unaware. The impairment did not happen suddenly. In effect, BOG was monitoring the quality of the assets of the financial institutions it regulates but forgot to examine its own.

    BOG’s huge “profits” were largely the result of unnecessarily high interest rates which have been detrimental to the real sectors. These profits supported their unnecessarily high operating costs, including the abnormally high remunerations paid to staff and directors. The commercial banks also benefitted from the high-interest rates. But, like BOG, their debtors (Government and other loan customers) could not bear these abnormally high lending rates, hence the massive debt losses these banks also reported in 2022.

    We are not out of the woods yet because the impact of all this on the economy means defaults by borrowers will continue for some time. Just a few months before our economy ran into trouble, BOG was praising the banking sector, claiming, “The banking industry’s performance has defied the general economic downturn with strong growth across key metrics including total assets and

    deposits, as well as sustained improvement in profitability within the industry during the first half of 2022.” And that, “The sector’s total assets increased by 22.8 per cent to GHS200billion at the end of the period. The domestic component of total assets recorded a higher growth rate of 23.5 per cent in June 2022 compared to a growth of 18 per cent in June 2021”. They added further that “…the higher growth in the industry’s assets by mid-year was primarily on the back of an upsurge in deposits and borrowings during the review period”.

    But as I pointed out, the undeniable truth is that all these “growths” were fueled by high-interest rates and were, effectively, a transfer of assets from government, the public, and the real sectors to the banking sector. BOG and the commercial banks’ huge parasitic profits put a lot of stress not only on the private sector but on the public sector as well. They imposed a huge burden on those outside the banking sector and frustrated the realisation of the structural changes needed in the economy.

    POLICY RATE, INTEREST RATES AND INFLATION

    BOG’s monetary policy has escaped scrutiny over the years because many of us had assumed that the ladies and gentlemen at BOG were infallible professionals. We have been wrong, at least so says the evidence.

    Not since 2003 when I complained about monetary policy in this country has there been any open debate about how monetary policy has been conducted. The arguments I made in 2003, more than 20 years ago, are still valid today. BOG had virtually indexed its policy rate to year-on-year inflation, a self-fulfilling prophecy, with predictably adverse consequences for inflation, the value of the cedi, and the economy at large. I believe many of us have now realised that the failure of monetary policy has been a key part of our problems.

    By this dogmatic interest rate policy, BOG tried to keep its policy rate above year-on-year inflation. In their December 2021 article in response to my concerns, BOG argued that “The simple theory underpinning finance suggests that investors will always have to be compensated for inflation and that investors always factor in real interest rates in making decisions. With an inflation rate of 11 per cent, the central bank’s policy rate of 13.5 per cent implies a real interest rate of 2.5 per cent”. That is poor economics, sadly supported by some “eminent African economists in their comment on the concerns I raised, thus, “..it should be noted that 13.5% lending rate is nominal. Ghana’s current inflation rate is about 10.5%, and hence the real rate is 3%”.

    Now that the economy has taken a nosedive, the BOG suddenly became happy to keep its policy rate below the year-on-year inflation rate over several months, when they had always argued for the opposite.

    It is important to appreciate that year-on-year inflation is a historical concept, and that, it is not past price changes that interest rates must seek to compensate for. The relevant inflation rate for fixing the policy rate is expected inflation, adjusted for seasonality, etc. Expected inflation is what astute investors are interested in, much the same way they look at forward price-earnings (P/E) ratios as opposed to trailing P/E ratios in evaluating shares for investment purposes.

    Future price trends are measured more accurately by the annualised latest average changes in the CPI, say a three-month average, adjusted for food and energy prices, etc. (Core CPI), which would give better real-time information for fine-tuning monetary policy.

    The Fisher effect, named after Irving Fisher, defines the link between inflation, nominal interest rate, and real interest rate, and explains the tendency for interest rates to rise when expected inflation is high and fall when expected inflation is low. Thus, a fall in expected inflation, if the expected real interest rate is unchanged, should cause an equal fall in the nominal interest rate. In our current context, the expected inflation is BOG’s 8% target. So, 8% plus the expected real interest rate should give us an acceptable nominal interest rate. The current policy rate of 30% translates into an expected real interest rate of 22%!

    Sadly, our economists have failed to realise the fallacy in comparing the current interest rate to past year-on-year inflation to determine the real interest rate. BOG’s fixation of its policy rate based on year-on-year inflation, with little or no interest in recent month-on-month changes, has been a self-fulfilling prophecy that has only succeeded in importing past inflation into the future, trapping us in a vicious circle of high inflation→ high-interest rate→ high inflation, and making Ghana’s inflation rate one of the worst on the continent over the past two decades.

    POOR VS RICH COUNTRY; COST-PUSH VS DEMAND-PULL INFLATION

    BOG’s persistence in trying to fight inflation in Ghana using high interest rates does not make logical sense, especially when it is indexed to (historical) year-on-year inflation. Raising interest rates to fight inflation often works in a rich country like the UK. The minimum wage in the UK is GBP9.50 an hour or GBP76 for an 8-hour workday. In Ghana, the minimum wage is GHS14.88 per day, less than GBP1. The average cost of a litre of petrol currently is about GBP1.57 in the UK, that is, 2% of the daily minimum wage. In Ghana, the average cost of petrol is about GHS14, that is, 94% of the daily minimum wage.

    The relativities are similar to other necessities of life. So, unlike in the UK, increasing interest rates will only increase the cost of living in Ghana, but will not encourage the average Ghanaian, who can hardly make ends meet, to spend less and save more.

    Also, it is difficult to see how policy rate increases can fight cost-pushed inflation resulting from factors like food or crude oil price increases or increased taxes on petroleum products. Sadly, even at the height of the COVID-19 pandemic, when income levels had fallen worldwide, and stimulus packages were being implemented everywhere to boost economic activity, BOG still ensured that we suffered under strangulating high interest rates.

    EFFECTS OF BOG’S INFLATION TARGETING MONETARY POLICY APPROACH

    BOG’s monetary policy over the years has succeeded in creating one of the most profitable banking sectors in Africa per the accounting reports, while ensuring a growth-stifling high inflation→ high-interest rate→ high inflation environment, with disastrous consequences for the cedi and the economy.

    Inflation

    BOG’s approach to inflation targeting has not worked. In December 2021 BOE increased its prime rate from 0.1% to 0.25%, to meet a 2% inflation target. BOG’s policy rate, on the other hand, had no relationship with its target inflation of 8%. BOG raised its policy rate from 13.5% to 14.5%, focusing more on the reported year-on-year (past) inflation of 12.2%, in a bid to maintain a “positive real interest rate” based on their awkward understanding of real interest rate.

    It is worth noting that Zambia’s November 2021 inflation rate was 19.3%, but the Central Bank of Zambia’s (CBZ’s) prime rate was as low as 9%. Zambia recorded 12.9% inflation in November 2023, while Ghana’s current inflation rate is 26.4%. Today, CBZ’s prime rate is 11%. But BOG, which is still targeting inflation of 8%, maintains a policy rate of 30.0%. BOG’s perennial inflation target of 8±2% thus appears to be at best an expression of desire which has become a template in their monetary policy releases.

    As I pointed out earlier, the reduction that we saw in the headline inflation rate recently was only a natural result of what happened to prices one year ago. It should be noted that, even though maintaining the current high policy rate will not help the fight against inflation, a reduction in BOG’s policy rate from 30% to 20%, for example, should not produce inflationary consequences. There is therefore absolutely no need to maintain the current high policy rate of 30%.

    Interest Rates

    BOG is still pursuing the same, growth-stifling, demand-side approach to the inflation problem, and we find ourselves locked in the vicious circle of high inflation→ high-interest rate→ high inflation. Sadly, the IMF has encouraged the use of the wrong monetary policy and inflation concept over the years. As our “advisors”, they share the blame for the mess we are in and have an obligation to help. I suspect some other African countries outside the French block have suffered similarly.

    So, after taking the difficult step to reduce domestic debt through the draconian DDEP, we are still piling up short-term debt – 91 Day Bill at 29.35%, 182 Day Bill at 31.95% and 364 at 32.49%.

    Currency Depreciation

    BOG’s astronomically high monetary policy rates have burdened our economy over the past 20-plus years. It has not only fueled increases in money supply over the years, fueling price increases but has also undermined the cedi. Contrary to their claims, we cannot use “higher interest rates to maintain exchange rate stability”, especially when they have failed to protect the cedi as the only legal tender in Ghana. High-interest rates have not and will not help us “maintain exchange rate stability”. Parity laws tell us the opposite.

    On November 1, 2007, GHS1 was equivalent to USD1. GHS1 invested in the Ghana Government’s 91-day treasury bill on that day and rolled over for 15 years would grow to about GHS12 on October 31, 2022, at the height of our economic crisis. Coincidentally, the price of USD1 on October 31, 2022 was about GHS13! Obviously, this huge return on the Cedi has been inflationary and pulled with it the value of the dollar in Cedi terms. Inflation was 40.4% in October 2022. Along with it, the dollar went up 141%, from average GHS6 in October 2021 to GHS14.47, implying cedi depreciation of 58.53%.

    External Borrowing Costs

    The unnecessarily high-interest rate numbers have fed into the external market perception of our outlook. We cannot through our policy rate give an impression of a high inflation risk outlook and expect the external financial markets to think differently. BOG’s approach has been costly for us in the international financial markets, where it has created an exaggerated risk perception, with adverse implications for our credit rating and borrowing costs. COCOBOD is currently suffering the consequence, of having to borrow at an unprecedented 8%.

    Speaking during a press briefing on Friday, October 7, 2022, in Washington, DC, on the 2022 edition of the Babacar Ndiaye Lecture, Dr Hippolyte Fofack, Chief Economist and Director of Research at Afreximbank elaborated on the importance of the year’s theme, “The Developing World in a Turbulent Global Financial Architecture”:

    “Africa’s total external debt is about USD726 billion. That makes it less than a third of Italy’s debt estimated at about $2.8 trillion. And expressed as a percentage of GDP, Africa’s total external debt is 27%, compared to 130% in Europe. Yet African countries are more at risk of debt distress than their European counterparts largely as a result of large spreads and default-driven borrowing rates assigned to African sovereign and corporate entities.”

    The Economy at Large

    High-interest rates have made the cost of capital excessive and made it difficult for businesses to borrow to invest in the real sectors of the economy, especially manufacturing, making it difficult to realise the value addition we crave. So, we have remained exporters of primary products.

    They have also hurt our ability to expand production capacity generally and perpetuated our import dependence. Local entrepreneurs have suffered more, and their inability to borrow, invest and increase local ownership has ensured the foreign domination of our economy. These and other structural bottlenecks have had significant supply-side and cost-push effects on inflation.

    Thus, BOG’s policies have been a stumbling block to creating an enabling financial market and have inadvertently frustrated the restructuring of the economy, which they have often identified as the solution to our balance of payments deficit and currency depreciation problems.

    BOG MANDATE, DIVIDENDS AND GOVERNANCE

    We should remember that price stability is not an end in itself. Probably more important is growth and employment generation, in which the BOG must show interest. We need to clarify BOG’s mandate and improve its governance to mitigate the profit motive.

    In principle, BOG should have turned over its profit to its only shareholder, the Government, which should determine how much of the profit BOG can keep. BOG should not be able to make decisions on profit distribution independently of the shareholder. That is not part of Central Bank independence. But shareholder apathy has allowed BOG to keep and misuse its “profits”.It is also important to point out that the independence of the BOG does not require that the Governor should be Chairman. It will enhance internal checks if the two roles are separated.

  • BoG unveils timetable for 2024 Monetary Policy Committee sessions

    BoG unveils timetable for 2024 Monetary Policy Committee sessions

    The Bank of Ghana’s Monetary Policy Committee (MPC) has issued its timetable for 2024, a move designed to provide clarity and assurance to the financial markets.

    During these scheduled meetings, the MPC conducts assessments of the current economic landscape and evaluates the anticipated inflation outlook.

    Following thorough deliberations, the committee members finalize decisions on the monetary policy rate through a democratic process, employing a one-person one-vote basis. In instances where a unanimous decision proves challenging, the committee strives to reach a consensus.

    The MPC’s meetings for the year 2024 are organized as follows:

    The first meeting is scheduled from January 23 to 26, concluding with a press conference on January 29. Subsequently, the second meeting will take place from March 20 to 22, with a press conference on March 25.

    Moving forward, the third meeting is set for May 22 to 24, wrapping up with a press conference on May 27. The fourth meeting will occur from July 23 to 26, ending with a press conference on July 29.

    The fifth meeting is slated for September 25 to 27, concluding with a press conference on September 30. Finally, the last meeting for 2024 is planned for November 20 to 22, ending with a press conference on November 25.

    This comprehensive timetable serves to keep stakeholders well-informed about the MPC’s activities and decision-making processes throughout the upcoming year.

  • First tranche of Cocoa Syndicated Loan hits BoG’s account

    First tranche of Cocoa Syndicated Loan hits BoG’s account

    The first tranche of the Cocoa Syndicated Loan, amounting to about $541 million, has been credited to the Bank of Ghana’s account, according to reports.

    This represents a portion of the $800 million loan, and the second tranche of approximately $200 million is expected to be transferred to the Central Bank’s account in January 2024.

    The Trade Facility Agreement for the Ghana Cocoa Board (COCOBOD) was approved by Parliament in November 2023, allowing COCOBOD to finalize the paperwork with participating banks.

    Under the terms of the agreement, COCOBOD will pay an interest rate of nearly 8%, including the one-month Secured Overnight Financing Rate (SOFR) and a margin of 2.65%.

    The funds are expected to support the purchase of cocoa beans from farmers through license buying companies for the 2023/2024 crop season.

    The inflow of funds is likely to bolster the Bank of Ghana’s reserves and strengthen its ability to support the Ghanaian cedi. News of the deal is already contributing to the stabilization of the cedi.

  • GHC3.19bn written off as bad debt by banks in October – BoG

    GHC3.19bn written off as bad debt by banks in October – BoG

    Banks in Ghana wrote off GH¢3.19 billion as bad debt in October 2023, marking a 9.5% year-on-year increase, as revealed by the Domestic Banks Income Statement published by the Bank of Ghana (BoG).

    This figure is higher than the ¢2.92 billion recorded during the same period in 2022. The provisions were made in the form of loan losses, depreciation, and other related categories.

    According to the Bank of Ghana (BoG), asset quality risks rose in October 2023, indicating an increase in the Non-Performing Loans (NPL) stock and NPL ratio during that period. The industry’s NPL ratio grew to 18.3% in October 2023 from 14.0% in October 2022, attributed to a higher growth in the NPL stock and a contraction in gross loans.

    Similarly, the NPL ratio adjusted for the fully provisioned loan loss category increased from 3.9% to 6.4% during the same comparative period. The NPL stock saw an 18.8% increase to ¢13.5 billion in October 2023 from ¢11.3 billion in October 2022, reflecting a deterioration in domestic currency loans.

    The private sector accounted for the majority of nonperforming loans, making up 93.8% in October 2023. The overall rise in the industry NPL ratio was influenced by deteriorating NPL ratios in five economic sectors, while three sectors reported improvements during the review period.

  • Ghana’s tourist arrivals surge by 17.8% in Q3 2023 – BoG

    Ghana’s tourist arrivals surge by 17.8% in Q3 2023 – BoG


    The Bank of Ghana (BoG) has released data indicating a significant surge in tourist arrivals, recording 304,171 individuals in the third quarter of the current year.

    This marks a notable increase from the 258,246 visitors recorded in 2022, reflecting an impressive annual growth rate of 17.8%. The central bank attributes this rise to a boost in tourism-related activities during the specified review period.

    In contrast, a recent report from Joynews reveals a decline in international trade at Ghana’s principal harbors, Tema and Takoradi.

    The decline is specifically observed in laden container traffic for both inbound and outbound containers during the third quarter of 2023.

    The total container traffic witnessed a decrease of 2.1%, dropping from 158,514 in the second quarter of 2023 to 155,146.

    “Total container traffic for inbound and outbound containers decreased by 2.1% to 155,146, from 158,514 recorded in Q2 2023,” the news portal said.

    Analysts link this downturn in port activities to subdued international trade dynamics and point to ongoing geopolitical tensions as additional contributing factors during the review period.

  • Shippers Authority, Bank of Ghana collaborate to educate exporters on Letter of Commitment requirement

    Shippers Authority, Bank of Ghana collaborate to educate exporters on Letter of Commitment requirement

    The Ghana Shippers Authority, in collaboration with the Bank of Ghana, has conducted an awareness workshop on the Bank of Ghana Letter of Commitment requirement for the repatriation of export proceeds.

    The Letter of Commitment is a prerequisite for approving export shipments to exit Ghana’s Ports and Borders.

    Since its implementation in 2016, the requirement has garnered significant attention, primarily due to the sanctions associated with non-compliance stemming from a lack of awareness among exporters.

    Monica Josiah, the Tema Branch Manager for the Ghana Shippers Authority, emphasized that the workshop aimed to address exporters’ and customs house agents’ concerns and complaints regarding non-compliance.

    She said, “we also want to use the documents that will come out of the sensitization workshop as a working document to help us. All the questions that have come up we are going to look at them and see whether something could be done to make the LOC more friendly or better suited to the transactions of exporters.”

    Eric Kweku Hammond, the Deputy Director of Foreign Banking Operations at the Bank of Ghana, stated that the purpose of the Letter of Commitment requirement is to guarantee that export proceeds intended for the state are properly accounted for, rather than to hinder the business of exporters.

    Lipton Baffour Nsoah, the operations manager at Ghana Link Network Services, asserted that ICUMS is dedicated to helping exporters with the customs process and went over what was expected of them.

    He indicated that “without the LOC together with the Customs declarations you cannot send your goods abroad whether by road, air or sea.”

  • Next of Kin doesn’t automatically inherit bank account – BoG clarifies

    Next of Kin doesn’t automatically inherit bank account – BoG clarifies

    Head of the Conduct Supervision Unit at the Bank of Ghana (BoG), Augustine Donkor, has clarified that being the next of kin to a deceased individual doesn’t automatically grant legal rights to inherit assets or money from their bank account.

    During a workshop in Accra aimed at reviewing the National Financial Education Campaign’s implementation, Mr. Donkor explained that the role of the next of kin in the banking sector primarily involves assisting institutions in reaching the account holder, especially in cases of dormant accounts or necessary updates.

    Despite the common belief, Mr. Donkor stressed that legal processes such as wills or letters of administration play a crucial role in determining access to the funds left by the deceased.

    Financial institutions, following specific legal procedures, attempt to contact the account holder when an account becomes dormant. If unsuccessful, the institution may involve the next of kin in facilitating communication, with access to funds subject to legal scrutiny.

    Mr. Donkor highlighted the importance of accurate information about next of kin to contribute to a robust financial ecosystem. He affirmed the BoG’s commitment to ensuring a well-informed and confident populace in financial matters.

    Ms. Patience Arko-Boham, the Head of the Pensions and Insurance Unit at the Ministry of Finance, reiterated the objective of the National Financial Education Campaign, aiming to equip consumers of financial services for their unique socioeconomic and environmental conditions while emphasizing the importance of accurate information and dispelling misconceptions.

  • Bank of Ghana issues warning, reiterates 60-day Grace period for exporters

    Bank of Ghana issues warning, reiterates 60-day Grace period for exporters

    The Bank of Ghana (BoG) has cautioned exporters against failing to repatriate a portion of their proceeds, emphasizing that sanctions will be imposed for non-compliance.

    The central bank stressed that the 60-day grace period granted to exporters will be strictly enforced to prevent abuse.

    Additionally, the BoG urged exporters to utilize the Bank’s Letter of Commitment Documents to facilitate their export transactions.

    Eric Hammond, Chief Manager overseeing Foreign Global Transfer and Remittance at the Bank of Ghana, highlighted ongoing collaboration with security agencies to ensure exporters adhere to regulations.

    Mr. Hammond emphasized the central bank’s willingness to engage with exporters to ensure compliance with repatriation requirements during a sensitization workshop on the Bank of Ghana Letter of Commitment.

    “The objective is not to stifle your operations but to save it rather. We need you as you need us and that’s exactly what we are doing here.”

    “After the 60 days and you are not complying, the system will block you and that means you would have to come to the Bank of Ghana which adds up to your cost”.

    He added “We are not blocking you but the system does that. So let’s do well to do it so. It doesn’t prevent you guys from doing further exportation. We don’t have the power to prosecute you but we are engaging the security services on that”.

    He stressed that exporters found culpable could encounter penalties, such as a fine of 5,000 penalty units, equivalent to ¢60,000, or imprisonment for up to 10 years, or both.

    The significance of repatriating export proceeds was underscored, with an emphasis on its role in building reserves and fortifying the local currency. This, he stated, contributes to the enhancement of trading activities, playing a pivotal role in facilitating Ghana’s broader transformation agenda.

    During the forum, participants raised a spectrum of concerns, including the escalation of freight charges, difficulties with the Letter of Commitment (LOC) system, the application of exchange rates surpassing the BoG rate at ports, bureaucratic impediments, and a perceived lack of financial and technical support from government and regulators.

  • Google removes, prohibits 200 illicit Ghanaian loan applications from the Play Store

    Google removes, prohibits 200 illicit Ghanaian loan applications from the Play Store

    Despite the challenges encountered throughout the year, the Bank of Ghana affirms its commitment to the pursuit of financial inclusion as a policy objective.

    Recognizing its potential for widespread economic growth and poverty alleviation, the central bank asserts that it remained steadfast in using policy and regulatory tools to create a conducive regulatory environment for the promotion of digital financial services, benefitting all economic stakeholders.

    Governor Ernest Addison, speaking at the Chartered Institute of Bankers’ Governor’s Day, highlighted that there are currently 52 non-bank payment service providers offering various payment solutions to meet the growing expectations of consumers.

    In a bid to further advance fintech activities, he noted that the central bank successfully engaged market players, including banks, DEMIs, PSPs, and MTOs, in the inward remittance termination space.

    This engagement aimed to identify issues and implement policies and measures associated with inward remittance termination services, ensuring a level playing field for all market participants.

    Moreover, the central bank initiated the first cohort of its Regulatory Sandbox to support innovations in new digital business models. These models, not explicitly or implicitly covered under existing regulations, have the potential to address present financial inclusion challenges.

    Also, Dr Addison mentioned that “surveillance and investigations into activities of illegal lending applications have commenced with the identification of over 200 loan apps offering unapproved and unlicensed lending products to the Ghanaian consumer”.

    In response, he said that financial institutions were cautioned to use only digital credit products that have been approved by the Bank of Ghana in two distinct public notices that were published in August 2022 and July 2023.

    To this effect, he said the bank “continuously engaged Google’s Regulatory and Policy unit, which facilitated the removal and barring of 200 loan apps from the Google Play Store”. 

    Since then, Dr Addison said, “Google has reviewed their Personal Loan Policy to restrict these lending apps from accessing device information including SMS and contacts”.

    Furthermore, he declared that, in cooperation with the Economic Organised Crime Office (EOCO), Cyber Security Authority (CSA) Ghana, and the Ghana Police Service, the central bank conducted a sweep resulting in the apprehension of 420 individuals, including three foreigners, in July 2023.

  • Bank of Ghana implements new monetary policy measure to manage inflation

    Bank of Ghana implements new monetary policy measure to manage inflation

    The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has implemented an additional monetary policy measure aimed at absorbing excess capital from the market to regulate inflation.

    Currently, inflation has shown a decline, reaching 35.2 percent after peaking at 54.2 percent in December of the previous year.

    The new measure, effective as of November 30, 2023, involves the consolidation of the currency holding for the Cash Reserve Ratio requirement on both foreign currency-denominated deposits and domestic currency deposits for banks.

    Furthermore, a new unified Cash Reserve Ratio has been introduced for total deposits (both cedi and foreign currency), with the requirement that it be held in cedis.

    “This measure is to reinforce the bank’s liquidity management operations to address excess structural liquidity conditions in the market and provide additional impetus to the disinflation pro­cess,” Dr Addison, the Governor of the BoG, disclosed this during a news conference at the 115th regular meeting of the MPC in Accra.

    He clarified that the Cash Reserve Ratio requirement for foreign currency-denominated deposits and domestic currency deposits of banks was being adjusted to 15 percent.

    Dr. Addison assured that the Committee would persist in observing changes within the banking sector and utilizing additional policy instruments when necessary to uphold stability.

    The Governor articulated that this new directive would contribute to further reducing inflation and withdrawing surplus liquidity from the market.

    Dr. Addison revealed that each of the 23 universal banks had presented recapitalization plans to the BoG. He stated that both the Banking Supervision Department and the MPC had scrutinized these plans and found them to be credible.

    “We are quite hopeful that within the next two years most of the banks would have capital­ised and be able to meet the cap­ital adequacy threshold without reliefs,” adding, “Right now they are meeting those capital thresh­old with regulatory reliefs.”

    Dr. Addison clarified that the expenditure of GH¢25 billion for the banking sector cleanup did not exclusively benefit banks; rather, some of the funds were allocated to the Savings and Loans as well as the Microfinance sectors.

    He noted that certain Savings and Loans and Microfinance institutions lacked tangible assets for the government to sell, hindering the reimbursement of individuals with locked-up funds in those entities.

    Regarding the Bank of Ghana’s E-Cedi initiative aimed at promoting a cash-lite economy, Dr. Addison mentioned that the program would not be implemented in the upcoming year.

    He explained that the initiative would be rolled out once the ongoing macroeconomic changes were addressed to ensure the program’s objectives were not compromised.

  • A dollar goes for GHS12.25 at forex, BoG interbank rate at GHS11.59

    A dollar goes for GHS12.25 at forex, BoG interbank rate at GHS11.59

    On November 28, 2023, the Bank of Ghana reported the interbank forex rates, revealing that the Ghana Cedi trades against the dollar at a buying price of 11.5842 and a selling price of 11.5958.

    In Accra’s Forex bureaus, the dollar is bought at a rate of 12.05 and sold at 12.25. Against the Pound Sterling, the Cedi is traded at a buying price of 14.6169 and a selling price of 14.6327.

    In Accra’s Forex Bureau, the pound sterling is bought at a rate of 14.90 and sold at a rate of 15.40.

    The Euro is trading at a buying price of 12.6696 and a selling price of 12.6822. In Accra’s Forex Bureau, the Euro is bought at a rate of 12.85 and sold at a rate of 13.35.

    The South African Rand is trading at a buying price of 0.6193 and a selling price of 0.6199. In a forex bureau in Accra, the South African Rand is bought at a rate of 0.40 and sold at a rate of 1.10.

    The Nigerian Naira is trading at a buying price of 71.3063 and a selling price of 71.3891.

    In a forex bureau in Accra, the Nigerian Naira is bought at a rate of 9.00 Naira for every 1 Cedi and sold at a rate of 15.00. For the CFA, it is trading at a buying price of 51.7227 and a selling price of 51.7741.

    In a forex bureau in Accra, the CFA is bought at a rate of 17.30 CFA for every 1 Cedi and sold at a rate of 19.80 CFA for every 1 Cedi.

  • Anticipating IMF board meeting for release of 2nd Tranche before year-end – BoG Governor

    Anticipating IMF board meeting for release of 2nd Tranche before year-end – BoG Governor

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has expressed expectations that the board of the International Monetary Fund (IMF) will convene before the year concludes to deliberate on the release of the second tranche of the $3 billion fund.

    This comes in the wake of the successful review of the initial $600 million tranche. Dr. Addison shared this information during the Q&A session at the 115th Monetary Policy Committee (MPC) press conference held in Accra on Monday, November 27.

    He said “We expect the IMF board meeting to take place before the end of the year, which should also trigger another disbursement of foreign exchange.”

    During the presentation of the 2024 budget statement to Parliament on November 15, Finance Minister Ken Ofori-Atta highlighted that Ghana achieved all six Quantitative Performance Criteria (QPCs) in the first review of the IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG).

    The Minister explained that the program undergoes semi-annual assessments by the IMF, involving a staff review mission followed by approval from the IMF Executive Board.

    Disbursements under the program are contingent on the successful completion of each review. The initial review involved an IMF mission assessing Ghana’s progress from September 25 to October 6, 2023.

    This review covered the assessment of:

    i. six (6) Quantitative Performance Criteria (PCs);
    ii. one (1) Monetary Policy Consultation Clause (MPCC) for inflation;
    iii. three (3) Indicative Targets (ITs); and
    iv. nine (7) Structural Reform Benchmarks (SBs) that were due at the end of September 2023.

    “I am glad to inform this august house that based on the IMF’s own assessment (at the staff level) after the first review, Ghana met All six (6) of the Quantitative Performance Criteria (QPCs). The QPCs are a floor on net international reserves, ceiling on primary balance on commitment basis, ceiling on contracting non-concessional loan/guarantee, zero collateralized borrowing, and no accumulation of external debt service arrears.

    “Two (2) out of the 3 Indicative Targets. The two ITs met are a floor on social spending and a floor on non-oil public revenue. The IT on zero net accumulation of payables was extended largely due to the ongoing negotiations with Energy Sector IPP on legacy debt; .

    “Six (6) out of the seven (7) Structural Benchmarks due end-September 2023. The six SBs met are (a) preparation and publication of arrears clearance and prevention strategy, (b) preparation and publication of financial sector strengthening strategy, (c) preparation and publication a strategy for review of earmarked (statutory) funds, (d) preparation and
    publication of a medium-term revenue strategy, (e) a strategy for indexation of LEAP benefits and (f) BoG to approve capital building buffer plans for banks. The seventh SB on the preparation and publication of an updated Energy Sector Recovery Plan which was expected to be completed at the end of June 2023 was strategically completed and
    published on the MoF website in October 2023.

    “Mr. Speaker, the outstanding performance of Ghana during the first (1st) review paved the way for Ghana to reach a Staff Level Agreement (SLA) with IMF on the 6th October 2023, a record five (5) months after the Programme was approved in May 2023.”

  • Court to determine judgment date for Nduom vs. BoG lawsuit on Tuesday

    Court to determine judgment date for Nduom vs. BoG lawsuit on Tuesday

    The final ruling in the protracted lawsuit against the Bank of Ghana (BoG), the Attorney General, and the GN Savings Receiver is imminent. Originally, Finance Minister Ken Ofori-Atta was a respondent but was later removed during the proceedings.

    The Accra High Court, presided over by Appeals Court Judge Gifty Agyei-Addo, initially scheduled a judgment for October 26, 2023, but the court did not convene on that day.

    Subsequently, a meeting was held on October 30, 2023, to review the case files. The judge then set November 14, 2023, for all parties to appear in court, with the expectation that the judge would announce the date for her ruling on that day.

    The lawsuit, Nduom and others versus BoG, has been ongoing since August 2019. Dr. Papa Kwesi Nduom and two other GN Savings & Loans shareholders contest the Bank of Ghana’s decision to revoke the institution’s license, alleging collusion between the Bank of Ghana and the Minister of Finance to “maliciously” understate GN Savings & Loans’ assets.

    Dr. Nduom claims that the Governor of the Bank of Ghana, Dr. Ernest Addison, convinced him to request reclassification from a universal bank to a savings and loans institution during a 2019 meeting.

    However, the savings and loans license was abruptly revoked despite promises of an upgrade to universal bank status contingent on government agencies settling outstanding receivables owed to Groupe Nduom companies.

    According to an affidavit deposed to by Dr. Nduom sighted by Today, the Bank of Ghana had reached an “unfounded, unproven, unverified and bizarre conclusion in respect of GN Savings’ financial position” because of their “failure or malicious refusal to take into account GN Savings’ assets that were and are still with the Government and its MDAs.”

    Noteworthy is the fact that the Supreme Court is still considering a case pertaining to GN Savings’ asset management. With the value of the assets taken over by the Receiver appointed by the BoG declining, perhaps the Supreme Court will rule on this issue.

  • Inflation will continue to decline – BoG

    Inflation will continue to decline – BoG

    The Bank of Ghana anticipates that the ongoing disinflation process will persist, ultimately leading to a return of headline inflation to the target within the medium-term.

    Nevertheless, the bank advises vigilance regarding potential risks to this disinflation path, such as heightened utility tariffs and fluctuations in commodity prices, with a particular focus on the volatility of crude oil prices.

    “The disinflation process is expected to continue to ensure that headline inflation returns to target in the medium-term. However, risks to the disinflation path include increased utility tariffs and volatility in commodity prices, especially, crude oil prices”.

    “These risks to the inflation outlook will be moderated by the tight monetary policy, relative stability in the local currency, and some base drift effects”, it said in the September 2023 Monetary Policy Report.

    The Central Bank further stated that headline inflation has seen a cumulative decrease of 14.0% since its peak at 54.1% in December 2022.

    Additionally, non-food inflation has significantly dropped by nearly 20%, indicating the overall effectiveness of monetary policy.

    “All the Banks’ measures of core inflation are on a downward trend, indicating continued easing of underlying inflationary pressures. In addition, one-year ahead survey-based inflation expectations seem well anchored”.

    Inflation in September 2023 decreased to 38.1% from the August 2023 figure of 40.1%, as reported by the Ghana Statistical Service.

    The data reveals that both food and non-food inflation experienced reductions. Food inflation dropped to 49.4% from the previous 51.9% recorded in August 2023, while non-food inflation decreased to 29.3% from the 30.9% recorded in August 2023.

  • A dollar goes for GHS11.95 at forex, BoG interbank rate at GHS11.31

    A dollar goes for GHS11.95 at forex, BoG interbank rate at GHS11.31

    On October 16, 2023, the Interbank forex rates from the Bank of Ghana indicate that the Ghana Cedi is trading against the US Dollar at a buying price of 11.3057 and a selling price of 11.3171.

    In Accra’s Forex bureau, the Dollar is bought at 11.75 and sold at 11.95 Cedis. Against the Pound Sterling, the Cedi is bought at 13.7252 and sold at 13.7400.

    In the same Forex bureau, the Pound Sterling is bought at 14.30 and sold at 14.70 Cedis.

    The Euro is bought at 11.8843 and sold at 11.8951.At the Forex Bureau in Accra, the Euro is bought at 12.20 and sold at 12.60 Cedis.

    The South African Rand is bought at 0.5950 and sold at 0.5955.

    In the Forex bureau, the Rand is bought at 0.35 and sold at 0.95 Cedis. The Nigerian Naira is bought at 68.0296 and sold at 68.1180.

    At the Forex bureau, 1 Cedi can be exchanged for 10.00 Naira when buying and 15.00 Naira when selling.

    For the CFA, it is bought at 55.1451 and sold at 55.1953.

    In Accra’s Forex bureau, 1 Cedi can be exchanged for 16.50 CFA when buying and 19.00 CFA when selling.

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

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

  • Ato Essien’s case: BoG failed in its supervisory and regulatory responsibilities – Ricketts-Hagan

    Ato Essien’s case: BoG failed in its supervisory and regulatory responsibilities – Ricketts-Hagan

    A former Deputy Minister of Finance, Kweku George Ricketts-Hagan, has asserted that the case of William Ato Essien, the founder of the defunct Capital Bank, clearly illustrates the Central Bank’s failure to fulfill its regulatory responsibilities.

    Ato Essien was sentenced to 15 years of imprisonment with hard labor after being convicted of embezzling over GH¢90 million in Bank of Ghana’s liquidity support provided to the now-defunct financial institution. Despite being granted multiple opportunities to reimburse the state, he failed to repay the full amount.

    In December 2022, he initially paid GH¢30 million and was required to make a GH¢20 million initial installment of the outstanding GH¢60 million by April 28, 2023. However, he could only manage to pay ¢5 million.

    In May, he was granted until July 4 to liquidate his assets and pay the state GH¢55 million, but this deadline passed without any payments being made.

    Mr. Ricketts-Hagan, speaking on JoyNews’ Newsfile on Saturday, October 14, argued that, due to the inherently self-centered and self-interested nature of human beings, even those with the best intentions may seek to maximize their own gains.

    This is precisely why, he contended, central banks and other regulatory bodies exist to oversee such activities. However, the weaknesses in the bank’s regulatory system allowed Mr. Ato Essien to evade accountability for his actions.

    “It is clear that it is not only the board that failed in its fiduciary responsibility in terms of governance but the Central Bank itself also failed in its supervisory and regulatory responsibilities,” he said.

    He expressed surprise that some board members of the bank and officials from the Bank of Ghana have not faced questioning regarding the matter.

    On the same program, Sylvester Tetteh, the Member of Parliament for Bortianor-Ngleshie Amanfro, praised the Attorney General for successfully recovering GH¢37 million from Ato Essien. Tetteh, who also serves as the Vice Chairman of Parliament’s Communications Committee, commended the AG’s office for this achievement, highlighting that it is one of the largest amounts the state has been able to recover from a criminal case under the Fourth Republic.

    He emphasized that, if this money had not been retrieved, the convict would have been able to enjoy his gains at the expense of the state upon his release from prison.

    Tetteh called on the Attorney General to include the board members who are believed to be implicated. He suggested that unless this is done, the conviction of Ato Essien alone may not serve as a sufficient deterrent to dissuade others from engaging in such illegal activities.

    “I think this is good for the country because a lot has been lost in respect of this banking sector clean-up because we had an ailing banking sector and if that hadn’t been done, it would have been a catastrophic event.”

    “So I think the Attorney General and the investigators have done a good job for the recovery made.”

  • Debt restructuring for G20 members must be expedited – BoG Governor

    Debt restructuring for G20 members must be expedited – BoG Governor

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has advocated for an expedited debt restructuring process for vulnerable members of the G20, which includes countries such as Ghana, Ethiopia, and Malawi.

    This call follows recent agreements made between Zambia, Chad, and their respective creditors, highlighting the importance of shielding these nations from potential domestic financial market instability.

    Dr. Addison made these remarks during an African Caucus Meeting focused on the theme of “Leveraging Public Debt for Sustainable Growth in Africa” held at the ongoing International Monetary Fund (IMF)/World Bank Group (WBG) Annual Meetings in Marrakech, Morocco.

    “While welcoming the latest developments on Zambia and Chad, we underscore the need to revamp the G20 Common Framework (CF) to ensure timely, orderly, equitable, inclusive, and transparent debt restructuring for distressed members in the region (including, Ghana, Ethiopia, and Malawi),” he said. 

    “We also call for a carefully designed debt resolution mechanism, especially, for vulnerable members with large-domestic creditors (as in the case of Ghana) to help avert domestic financial market instability,” the BoG Governor added. 

    The Governor emphasized the significance of enhanced engagement between debtors and creditors, emphasizing the need for an improved Global Sovereign Debt Roundtable (GSDR) and enhanced technical support. These measures are essential to facilitate a more efficient, proactive, and systematic debt restructuring process.

    “We also reaffirm the request for debt standstill during times of negotiations to offer immediate relief to debtors and restate our request for multilateral debt cancellation for the most vulnerable members facing acute debt challenges,” Dr Addison said. 

    He emphasized the need for improved cooperation between the IMF and Multilateral Development Banks/Regional Development Banks to ensure the prompt delivery of financial aid to G20 member countries grappling with substantial debt and growth difficulties.

    “In this context, we restate the call for new SDR allocation through the MDBs/RDBs’ (including the African Development Bank – AfDB), given their multiplier effects in achieving climate and development goals,” he said. 

    “Given the fragmented global financial architecture, we urge the IMF to remain steadfast and adapt its lending toolkits to changing global conditions to serve its G20 vulnerable membership better,” Mr Addison advocated. 

    Speaking on this issue at a press briefing on Thursday, Kristalina Goergieva, Managing Director, IMF, said: “The Common Framework has been slow to deliver to countries that turn to it for support.” 

    She noted, however, that: “We see an encouraging sign that the time taken to reach an agreement among creditors is short with every step.” 

    She pointed out that the process took varying durations, with Chad’s creditors taking 11 months to provide the necessary financial assurances to the Fund, followed by nine months for Zambia, six months for Sri Lanka, and five months for Ghana.

    The Managing Director of the IMF elaborated that the complexity of creditors and the unique arrangements in each case made debt restructuring an arduous task since it necessitated unanimous agreement from all creditors.

    She suggested adopting a case-specific approach to identify creditors and establish a Creditors’ Committee, with the IMF and World Bank outlining the key parameters that require agreement.

    “This is the way that today, debt restructuring is delivered, ” Goergieva said, adding that “my plea is, pressure for speed and efficiency, but don’t throw the towel on the Common Framework, because if we lose it, then we’re back in a much less predictable environment.” 

    Numerous African economies find themselves confronted by severe debt issues, accentuated by the growing demands for social and infrastructure investments. These challenges are exacerbated by the ramifications of the COVID-19 pandemic, the conflict in Ukraine, tightening global financial conditions, and climate-related disasters.

    In light of these circumstances, it has become imperative for these nations to regain control over their debt situations and foster inclusive, sustainable growth across the continent. Achieving these goals hinges on effective debt management, particularly concerning external creditors.

  • A dollar goes for GHS11.90 at forex, BoG interbank rates at GHS11.27 

    A dollar goes for GHS11.90 at forex, BoG interbank rates at GHS11.27 

    Today, October 12, 2023, the Ghana Cedi is trading versus the dollar at a purchasing price of 11.2603 and a selling price of 11.2715, according to the Interbank exchange rates provided by the Bank of Ghana.

    At Forex bureaus in Accra, the US Dollar is bought at a rate of 11.70 and sold at 11.90.

    Against the British Pound Sterling, the Cedi is traded at a buying price of 13.8389 and a selling price of 13.8538. In Accra’s Forex Bureaus, the Pound Sterling is bought at 14.25 and sold at 14.65.

    The Euro’s exchange rate stands at a buying price of 11.9404 and a selling price of 11.9522. In Accra’s Forex Bureaus, the Euro can be bought at 12.20 and sold at 12.60.

    The South African Rand is trading at a buying price of 0.5974 and a selling price of 0.5979. In Accra’s forex bureaus, the South African Rand is bought at a rate of 0.35 and sold at a rate of 0.95.

    The Nigerian Naira is trading at a buying price of 67.9928 and a selling price of 68.0816. At forex bureaus in Accra, the Nigerian Naira can be bought at a rate of 10.00 Naira for every 1 Cedi and sold at a rate of 15.00.

    For the Central African CFA Franc (CFA), the exchange rate is at a buying price of 54.8817 and a selling price of 54.9359. In Accra’s forex bureaus, the CFA can be bought at a rate of 16.50 CFA for every 1 Cedi and sold at a rate of 19.00 CFA for every 1 Cedi.

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

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

  • BBC reports on how Ghana’s central bank lost US$5b in a year

    BBC reports on how Ghana’s central bank lost US$5b in a year

    Ghana, once heralded as a pioneering African economic success story, now finds itself grappling with an unparalleled financial crisis.

    In recent days, the streets of the capital city, Accra, have witnessed hundreds of protestors demanding the resignation of the governor of the Bank of Ghana and his two deputies due to a staggering loss of approximately 60 billion Ghanaian cedis ($5.2 billion; £4.3 billion) during the 2022 financial year.

    This demonstration, known as #OccupyBoG, was spearheaded by the opposition National Democratic Congress (NDC) party. The protesters, adorned in red attire, including shirts, scarves, and berets, voiced their grievances through songs and displayed banners bearing messages such as “stop the looting, we are suffering.”

    The opposition alleges that the central bank engaged in unlawful money printing to extend loans to the government, resulting in the devaluation of the currency and severe inflationary pressures.

    Furthermore, the NDC has voiced criticism against the bank for its expenditure, including over $762,000 on both domestic and international travel, marking an 87% increase compared to the previous year, and $250 million on a new office complex. These financial details, according to the opposition, are documented in an internal audit.

    The NDC has accused Dr. Ernest Addison, the governor of the central bank, of acting recklessly and mismanaging the financial situation. While the bank has faced mismanagement allegations in the past, the magnitude of this particular loss is unparalleled.

    “We have never seen anything like this in our history. If the Bank of Ghana wants to recover from this loss… it will take them more than 45 years,” says economist Professor Godfred Bokpin, from the University of Ghana.

    The bank refutes allegations of mismanagement and asserts that the losses were primarily attributable to exchange rate fluctuations and the failure of state institutions to repay their loans. Additionally, it points to the government’s decision to borrow $700 million from the bank and not fully repay it as a contributing factor to the ongoing crisis.

    Critics have also accused the bank’s leadership of exacerbating rampant inflation and economic hardship through their actions. Lawyer Martin Kepbu questions, “During the period when they were printing billions for the government, did they not anticipate the potential repercussions?”

    Why has this happened?

    Ghana is currently grappling with its most severe economic crisis in a generation. In the previous year, the inflation rate soared to a historic high of 54%, and it continues to hover above 40%. Multiple credit rating agencies have downgraded the country, making it challenging to secure international borrowing.

    As of September 2022, Ghana’s total debt had surged to $55 billion, necessitating that over 70% of the government’s income be allocated to service this debt—an unsustainable situation that led to defaults on a significant portion of its debt payments.

    In response, the government sought assistance from the International Monetary Fund (IMF) and secured a $3 billion bailout earlier this year, contingent upon meeting specific requirements. Chief among these was the need to reduce the nation’s debt interest payments to a manageable level by 2028, thereby ensuring sufficient resources for economic governance.

    To fulfill this commitment, Ghana’s government initiated a debt restructuring process by renegotiating terms with creditors, proposing reduced interest rates and extended repayment periods to alleviate the strain on public finances. However, some creditors declined to participate in this debt exchange program.

    On August 9th, the Bank of Ghana released a statement indicating that the government had informed it of its inability to meet the IMF’s requirement, and, as a result, would not repay half of the $700 million borrowed from the bank. Instead, these funds would be allocated to the debt restructuring process, with no interest payment to the bank.

    The Bank of Ghana, as the lender of last resort, has been accused of having its status misused by the government, led by President Nana Akufo-Addo, and of violations of the bank’s regulations.

    “The Bank of Ghana Act is very clear that printing money or financing the government is limited to 5% of the previous year’s fiscal revenue, which means that in principle supporting the government is not a crime but don’t go beyond 5%,” says Professor Bokpin.

    If the 5% threshold is exceeded, the bank’s officials are required by law to report to parliament. Failure to report could result in a fine or a term of jail of up to two years.

    Implications for the bank

    However, it’s important to note that the Bank of Ghana’s financial situation doesn’t imply insolvency.

    Unlike commercial banks, it doesn’t operate with the primary goal of generating profits, and thus, this loss shouldn’t disrupt its regular operations. Furthermore, as the lender of last resort, it possesses the capability to create its own currency as needed.

    Nonetheless, experts argue that the central bank’s loss carries significant consequences. It erodes the moral authority of the bank in its role of overseeing Ghana’s commercial banks and erodes confidence in the nation’s financial system.

    While central banks worldwide have encountered similar challenges, what sets Ghana apart is the scale of the loss relative to the size of its economy.

    In contrast, the Bank of England, for example, anticipates a net loss of approximately $180 billion over the next decade, which will be covered by the UK government. However, the UK’s economy is measured in trillions of dollars, making the loss proportionally less impactful.

    Inflation in Ghana is still running at more than 40%

    According to Bright Simons, a Ghanaian social innovator and writer, the bank’s losses cannot be compared to those of other countries. “Their attempt to deflect blame by pointing to losses by other central banks makes no sense because the magnitude of their losses far outweighs those of other peer banks.”

    “A lot of the mess is down to the bank’s accommodative stance on the government’s loose fiscal policy,” he says.

    In other words, by creating money the bank has allowed the government to live beyond its means.

    Human Impact

    According to a recent report by the World Bank, as of last month, an estimated 850,000 Ghanaians have been pushed into poverty due to soaring inflation.

    The income levels of Ghanaians have been steadily eroded, significantly impacting their purchasing power. The persistently high prices of essential commodities such as food, fuel, and utilities have placed a heavy burden on many households, making it increasingly challenging to make ends meet.

    Adding to the country’s woes, the central bank is now facing scrutiny both domestically and from the IMF. As per the terms of the IMF loan agreement, should the government seek additional bailouts, the central bank’s hands will be tied, forcing it to decline such requests.

  • We would not be paying you your monthly salary if we were hooligans – Ako Gunn to BoG Governor

    The Deputy National Communications Officer of the opposition National Democratic Congress (NDC), Godwin Ako Gunn, has strongly criticized the Central Bank’s governor, Dr. Ernest Addison, characterizing him as an arrogant and discourteous public official.

    According to Ako Gunn, he believes that if he were not representing the NDC, he would have used the term “mentally unstable” to describe Addison.

    “It is unfortunate that the governor has chosen to disrespect Ghanaians. He opened his mouth and made reckless and irresponsible remarks about people whose taxes pay him. Hooligans are lawless people, and describing taxpayers who pay his monthly salary demonstrates how disrespectful he is,” Mr Ako Gunn stated

    The only appropriate observation in this situation is that he lacks self-respect, and as a result, he lacks respect for the people of Ghana. His remarks were deeply troubling. He is employed in an institution plagued by theft, corruption, and mismanagement. If this were not the case, there would be no justification for spending GHC 135 million on car repairs.

    The Governor of the Bank of Ghana has informed Central Banking that he rejects the call from the country’s primary opposition party for his resignation. On October 3, the Minority group marched to the central bank’s headquarters, demanding the resignations of Dr. Addisson and his deputy governors, citing the bank’s reported GHC 60 billion loss for the 2022 fiscal year.

    Ernest Addison, on the other hand, claims that “the demonstration was completely unnecessary” and that neither he nor his deputies intend to resign.”

    Reacting to the comments, Ako Gun said ”I would have declared him mentally unstable if I weren’t a communicator for the NDC. Listen to what I’m saying; I didn’t insult him. I only stated that I would have; I did not describe him as such.”

    He made the remarks during an interview on Rainbow Radio 87.5 FM’s Nyankonton Mu Nsem.

  • #OccupyBoG protest: Prof Gyampo’s open letter to BoG Governor

    OPEN LETTER TO THE GOVERNOR OF BANK OF GHANA

    Dear BoG Governor,

    1. Your response to the tax payers and demonstrators is unprecedented. You want to determine how they voice their dissatisfaction about your abysmal performance? You described them as hooligans for demonstrating against you? Please who are you? Are you a demi-god or some deified ancestor-incarnate? It appears you have a very infinitesimal understanding of the system of government we have decided to operate and I strongly recommend that you take lessons in the tenets of democracy, that creates the kind of environment conducive for your work and for all us to thrive. Otherwise, your attitude is going to be the cause of many demonstrations that would peak our political temperature and create unnecessary tension.

    2. Isn’t it under your watch that the BoG has negative equity? If my understanding of negative equity is correct, it means the BoG has no money to operate, and if so, where are you getting money for the construction of your new Headquarters? Borrowing to soak us into more debt or printing more money?

    3. The BoG is currently insolvent under your watch and it doesn’t lie in your mouth to offer your own definition of what insolvency is. It is an insult to our intelligence to get us into this quagmire, and still marshal the audacity to tell us that the BoG is technically not insolvent because, it is a state entity. If there’s no money, there’s no money.

    4. You spent about 137 million on vehicle maintenance; collapsed over 400 banks and micro-finance companies; printed over 700 trillion within 2 years; and depleted our foreign reserves. Yet you still want to determine how the tax payer reacts to your decision to choose excessive partisanship over competence? Your attitude and response epitomizes what my father referred to as IMPUNITY PERSONIFIED. The President of the land has received several calls for his resignation and your boss, Ken Ofori Atta is still being asked to resign or be sacked. None of these have responded arrogantly like the way you have.

    5. Please Governor, printing money does not make you owner of human life and human rights and respectfully, sir, you portray a certain high level poverty, if all you have, is the money you have printed, which makes you arrogant in insulting tax payers who are unhappy with your abysmal performance. This isn’t how Governors G.K Agamah, K. Dufuor, P. Acquah, and N. Ishahakku handled the BoG. These chaps were simply sober and competent.

    6. Whether you resign or not, you would by all means, account one day, for your stewardship either in heaven or in hell or in prison or in your home. One thing is certain to me and must be clear in the minds of all, if we survive 2024, the conduct of governance, politics and the management of our economy wouldn’t be business as usual. Things would change to the glory of God, for the betterment of lives of Ghanaians, and to the shame of wicked and incompetent leadership.

    Thank you

    Yaw Gyampo
    A31, Prabiw
    PAV Ansah Street
    Saltpond &
    Suro Nipa House
    Behind Old Post Office
    Larteh-Akuapim

    DISCLAIMER: Independentghana.com 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

  • Inflation on food is not influenced by BoG – Akosua Manu

    Deputy Chief Executive of the National Youth Authority, Akosua Manu, has shared her thought on the recent #OccupyBoG protest, asserting that it was misdirected.

    She emphasized that the Bank of Ghana (BoG) does not involve itself in food crop cultivation for estimating food inflation.

    During her appearance on TV3’s New Day, Akosua Manu acknowledged the significance of holding institutions accountable but underscored the importance of ensuring that such actions remain within the institution’s proper jurisdiction.

    “Some of the things that the minority talked about, if they are talking about factors that affect inflation, including food, it is not BoG that plants maize or plantain to determine that. It doesn’t come to them. Secondly, if you want to have a conversation about him resigning, he doesn’t appoint himself; take it to the right authority for that to happen, so it becomes a question of gimmicks and games,” she stated.

    Manu also pointed out that it was fitting for the government to seek assistance from the BoG, as it falls under the government’s purview. She contended that the Bank of Ghana could potentially extend financial support to the government, including options like an overdraft, in a manner it deems appropriate.

    However, Manu criticized Dr. Ernest Addison, the Governor of the Bank of Ghana, for labeling demonstrators as “hooligans.”

    She disagreed with his choice of words, stating, “In the end, I disagree with the description of the protesters as hooligans; he performed poorly on that front. No one can make me believe that they were the right words to use.”

    Nevertheless, Manu took issue with Dr. Ernest Addison, the Governor of the Bank of Ghana, for characterizing the protesters as “hooligans.” She expressed her disagreement with his language choice, remarking, “Ultimately, I do not agree with referring to the demonstrators as hooligans; he fell short in that regard. I am not convinced that those were the appropriate words to use.”

    The Minority coalition in Parliament, comprised of members representing the National Democratic Congress (NDC), CPP, PNC, and other civil society organizations, orchestrated the Occupy Bank of Ghana (BoG) demonstration on Tuesday, October 3, 2023.

    Their primary demand was the immediate resignation of the BoG Governor and his two deputies. The protest saw the participation of thousands of individuals who marched along the main thoroughfares of Accra.

    The group’s key grievances encompassed the GH¢60 billion loss incurred by the Central Bank in the 2022 fiscal year and the controversial new central bank headquarters project, projected to exceed $250 million USD in cost.

  • Why do you disrespect “important” BoG security director – Angry Paul Adom Otchere slams Ato Forson

    Host of Metro TV’s ‘Good Evening Ghana’ programme, Paul Adom Otchere, has slammed the Minority leader in Parliament, Dr Ato Forson and the entire leadership of #OccupyBoG protest, for refusing to hand over their petition to the Head of Security at the Bank of Ghana, Wing Commander Kwame Asare Boateng.

    On Tuesday, the Bank of Ghana Governor, Dr Ernest Addison failed to show up to receive the petition from the NDC MPs who participated in the #OccupyBoGprotest.

    The leadership of the OccupyBoG protest was met by Wing Commander Kwame Asare Boateng and a host of the Bank’s leaders, who told the protesters that Dr Addison was in a meeting with a team from the International Monetary Fund (IMF) and was therefore unavailable to receive the petition.

    But the leadership of the protest refused to hand over the petition to him as they considered him as out of place to receive such a petition.

    “I feel very disrespected as the Leader of the opposition in Parliament. For a simple reason that we demanded to present a petition to the Governor of the Central Bank of the Republic of Ghana otherwise known as the Bank of Ghana. The Governor has two deputies, namely Deputy 1 and Deputy 2.

    “Unfortunately, he has decided to disrespect us and his two deputies have also decided to disrespect us by not being here to accept the petition. We never said we are going to present our petition to the head of security or someone responsible for security with all due respect.

    But Paul Adom Otchere has described the act of refusal by the NDC as insolent and condescending towards BoG’s head of security.

    “Does he denote some low player or something like that? That is what I want to correct. And I don’t understand why minority leader like Casiel Ato Forson, one who is looking to rule the country, looks at someone and says, oh you are head of security at bank of Ghana and I don’t want to deal with you. That was total disrespect. Not just to this man. But also if you look at this man’s profile and Ato Forson’s profile, given that Ato Forson has been elected by some people, I respect that. But if you look at the two profiles Ato forson should not be able to tell him that you have disrespected me because they say you should come for the petition. I’m very disappointed in Casiel Ato Forson and the NDC leadership. Why do you disrespect such an important person because he is called security?”, Paul Paul Adom Otchere expressed.

    Meanwhile, Dr Casiel Ato Forson says protesters demanding the resignation of Bank of Ghana (BoG) Governor, Dr Ernest Yedu Addison will not stop until they meet and present their petition to him.

    Dr Ato Forson said their petition contains more than just the resignation of BoG leadership.

    So the Governor sending security officers to receive the petition is disrespectful.

    He added that they will not present the petition but they will look for another time to exactly so.

  • #OccupyBoG demo: Who is BoG’s ‘watchman’, Wing Commander Kwame Asare-Boateng (rtd)?

    On Tuesday, October 3, Bank of Ghana Governor, Dr. Ernest Addison was notably absent when the NDC MPs attempted to present their petition during the #OccupyBoG protest.

    Instead, the OccupyBoG protest’s leadership encountered Wing Commander Kwame Asare Boateng (retired) and several Bank officials.

    They were informed that Dr. Addison was engaged in a meeting with a delegation from the International Monetary Fund (IMF) and was unavailable to receive the petition.

    MP for Ningo-Prampram, Sam Nartey George, was upset that a “watchman” had been sent to receive the delegation.

    “We were told stories that he wasn’t well and later told that he would come and receive our petition and we stood there for an hour and more and still failed to show up and sent a watchman to come and meet us,” he said.

    But who is Wing Commander Kwame Asare Boateng (retired).

    Wing Commander Kwame Asare-Boateng Rtd (Esq) joined the Bank of Ghana in 2019, assuming the role of Director responsible for the Security Department. During his tenure, he has significantly revitalized and enhanced the effectiveness of the Security Department.

    Prior to his service at the Bank of Ghana, Mr. Asare-Boateng dedicated 26 years of his career to the Ghana Air Force, where he ascended through the ranks to the position of Wing Commander. He also held the role of Deputy Director of the Legal Directorate at the Air Force Headquarters. Throughout his military service, he held various key roles, including those of an Intelligence Operator, Administrator, and Legal Officer.

    Mr. Asare-Boateng participated in numerous operational assignments, including serving as the Force Conduct and Discipline Officer with the United Nations Interim Force in Lebanon (Unifil) and as the Force Intelligence Officer during his tenure as a UN Observer in Liberia.

    He was admitted to the Ghana Bar in 2007 after successfully completing his professional law program. In addition to his legal qualifications, he holds a Master of Arts Degree in International Relations and a Bachelor of Arts Degree, both awarded by the University of Ghana.

    Mr. Asare-Boateng’s distinguished service has been recognized through several awards and United Nations Medals, highlighting his professionalism and unwavering dedication to both his nation and the United Nations.

  • #OccupyBoG: We will not leave until Governor Addison takes our petition – Ato Forson

    Minority Leader in Parliament, Dr Cassiel Ato Forson, has noted that the protestors involved in the #OccupyBoG demonstration would only hand over their petition to the Governor of the Central Bank, Dr Cassiel Ato Forson.

    Engaging the press today during the protest, the Minority leader noted that no other staff would be engaged.

    Should Dr Addison fail to receive the petition, the protestors have pledged to remain at the Central Bank until he does so.

    “I together with the leadership of the NDC Minority in Parliament must be allowed to walk to the Central Bank to present a petition that should be received by the Governor himself.

    “He must be the one to receive our petition. We won’t just hand it over to him; we will read it to his hearing. And we will demand his exit today.

    “If he fails to exit, there will be a series of actions against him. Then we will not leave there,” Dr Ato Forson said.

    The Minority has expressed dissatisfaction over the unauthorized printing of over GH¢80 billion by the central bank for the Akufo-Addo government.

    According to the Minority, the Central Bank, by so doing, has pushed some 850,000 Ghanaians into poverty. They therefore have called for the removal of Dr Ernest Addison.

  • Video of cash stash fake – BoG sources

    Official sources within the Bank of Ghana (BoG) have discredited a video circulating on social media that purportedly shows stacks of cash, allegedly printed by the BoG on behalf of the government for election-related purposes.

    The BoG sources have unequivocally labeled the video as “fake” and “propagandish.”

    The widely circulated video is accompanied by commentary suggesting that the money was intended for election-related activities. However, the central bank has dismissed these claims.

    According to the BoG, a careful examination of the purported cash stash revealed that the currency displayed in the video is not denominated in Ghana cedis.

    Furthermore, sources within the Bank of Ghana have urged the Ghanaian public to disregard the “propaganda” video and to “treat it with contempt.” They have clarified that it is an old video that resurfaces periodically for propaganda purposes.

    The BoG has urged the public to exercise caution and refrain from disseminating misinformation based on this “misleading” video.

  • Effectiveness of IMF program evident in economic indicators – BoG

    Effectiveness of IMF program evident in economic indicators – BoG

    The Bank of Ghana has affirmed that Ghana’s International Monetary Fund (IMF) program is delivering positive outcomes, citing improved economic indicators in recent months.

    Dr. Ernest Addison, the Governor, highlighted positive trends in factors such as the exchange rate and inflation during a press briefing by the Monetary Policy Committee on September 25, 2023. He stated, “The Committee has noted the overall improvement in domestic macroeconomic conditions, with robust economic growth and a decrease in inflation in August.

    These developments indicate that the policy framework established under the three-year IMF Extended Credit Facility is starting to show results.”

    “Economic activity is rebounding strongly, the exchange rate is stabilising, inflation is declining, and the level of foreign exchange reserves has improved. Sustained improvement in these indicators should result in the restoration of real incomes and purchasing power,” he said.

    Ghana anticipates the arrival of the second portion of the IMF loan by year-end, according to the Governor. He emphasized that “During the final quarter of the year, reserve buildup will be reinforced by anticipated funds from the cocoa syndication loan, the second installment of the IMF ECF program, and additional multilateral inflows.”

  • Policy rate remains unchanged at 30%

    Policy rate remains unchanged at 30%

    The Monetary Policy Committee of the Bank of Ghana (BoG) has chosen to maintain the key lending rate to commercial banks at its current level.

    Following their review of economic developments, they have decided to keep the rate steady at 30 percent.

    Speaking to the press, Dr. Ernest Addison, the Governor of the Bank of Ghana, highlighted that this decision was based on the positive response of all macroeconomic indicators to previous measures taken to control inflation.

    “Given these considerations, the Committee decided to maintain the policy rate at 30.0 percent. The Committee further indicated that while the expectation is for continued disinflation, it stands ready to respond appropriately should inflation deviate from these broad expectations”, he said.

    Regarding inflation dynamics, Dr. Addison elaborated that the ongoing commitment to a stringent monetary policy stance and the stability of the exchange rate have played crucial roles in driving the observed disinflation process throughout the year.

    He further stated that Headline inflation has decreased by a cumulative 14.0 percent since it peaked at 54.1 percent in December 2022.

    Dr. Addison also noted that non-food inflation has experienced a substantial decline of nearly 20 percent, underscoring the overall effectiveness of the monetary policy measures.

    “All core inflation measures, monitored by the central bank are trending downwards, indicating continued easing of underlying inflationary pressures. In addition, one-year ahead survey-based inflation expectations seem well anchored”.

    He emphasized that although the disinflation process has resumed, it is anticipated to lead to a gradual return within the target range over the medium-term, unless unexpected shocks, increases in global crude oil prices, or adjustments in utility tariffs disrupt this trajectory.

    Dr. Addison highlighted that these factors continue to pose risks to the inflation outlook, which will require careful monitoring and management through vigilant monetary policy measures.

  • Economic outlook promising, inflation improving – BoG Governor

    Economic outlook promising, inflation improving – BoG Governor

    Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has declared that the economy’s outlook is favorable, with macroeconomic indicators showing signs of improvement.

    “We are quite confident about the outlook of the economy, as just last week we had a new reading of inflation, and this is the first time we have stayed on the disinflation path with inflation declining by three percentage points,” he said.

    The Governor made these remarks during the 47th meeting of the Committee of Governors of Central Banks of the West African Monetary Zone and the 62nd Ordinary meeting of the Committee of Governors of Central Banks of the Economic Community of West African States (ECOWAS).

    This program was a part of the 2023 Mid-Year Statutory Meetings hosted by the Government of Ghana under the auspices of the Ministry of Finance and the Bank of Ghana, which included the West African Institute for Financial and Economic Management (WAIFEM), West African Monetary Institute (WAMI), and West African Monetary Agency (WAMA).

    Notably, inflation decreased from 43.1 percent in July to 40.1 percent in August, following its peak at 54.1 percent in December of the previous year.

    Dr. Addison, who delivered the keynote address, highlighted that in 2022, Ghana faced an economic crisis, prompting the government to seek an Extended Credit Facility of $3 billion from the International Monetary Fund (IMF) to restore macroeconomic and debt sustainability.

    He further emphasized that the government is currently prioritizing the implementation of measures aimed at reestablishing macroeconomic stability and fostering inclusive economic growth.

    “There are important lessons to be learnt from the ECF IMF pro­gramme which we will share with our colleagues in these meetings,” Dr Addison stated.

    He mentioned that the meeting served as a platform to evaluate the progress of the member states within the Economic Community of West African States (ECOWAS) in their pursuit of a unified currency.

    Dr. Addison emphasized that the program, of greater significance, offered a chance to reassess the roles of monetary institutions like WAIFEM, WAMI, and WAMA in the roadmap leading to the launch of the ECO currency next year. It also provided an opportunity to delve into other economic and monetary developments within the West African Monetary Zone (WAMZ).

    “The question facing us at this meeting is what we shall do differ­ently after 36 years since the incep­tion of the ECOWAS Monetary Co-operation and 23 years since the second WAMZ was institut­ed,” he stressed, saying, “And this leaves next year a critical year in the lead up to the launch of the ECO under the roadmap in line with the new macroeconomic convergence,” he said.

    Dr. Olorunsola Olowofeso, the Director-General of WAMI, noted that macroeconomic vulnerabilities had escalated within the West African Monetary Zone (WAMZ).

    These vulnerabilities were prompted by factors such as high inflation rates, an expanded fiscal deficit, increased debt burdens, currency depreciation, and restrictive financial conditions.

    “Recent political instability had added to the woes of pre-existing insecurity challenges in ECOW­AS, exposing the fragile recovery of the WAMZ economies to the risk of reversal of macroeconom­ic gains and creating an environ­ment of uncertainty,” he stated.

  • BoG paid $35m for construction of new Corporate Head Office in 2022 – Auditor-General report

    BoG paid $35m for construction of new Corporate Head Office in 2022 – Auditor-General report

    The Bank of Ghana (BoG) paid a colossal amount of US$117,150,255.37 to contractors for various projects in the country in 2022, when Ghana witnessed an economic crisis.

    According to the Auditor-General in its report christened “Consolidated Statements of Foreign Exchange Receipts and Payments of the Bank of Ghana (BoG) for the year ended 31 December 2022”, the amount paid was 263.3 per cent higher than US$32,246,487.75 for the corresponding period of 2021.

    “The upsurge was attributable to the construction of Bank of Ghana Corporate Office in Tamale and Sports infrastructure for the hosting and organization of the 13th African Games, Accra 2023 accounting for 30.7% and 30.5% respectively of the total amount of
    US$117,150,255.37,” the report added.

    In a breakdown, it was revealed that Messrs Goldkey Properties Limited received payment of $35,909,067.50 for the construction of a new corporate head office for Bank of Ghana.

    An amount of $35,701,405.64 was paid to Messrs Contracta Construction UK Limited for the Sports Infrastructure for the
    Hosting and Organisation of 13th African Games, Accra 2023.

    Messrs Maripoma Enterprise Limited was paid $20,788,740.83 for the rehabilitation of Ofankor-Nsawam Road (Dual Carriageway)

    Economic crisis in 2022

    In early 2022, sovereign spreads on Ghana’s Eurobonds widened, and Credit Rating Agencies further downgraded Ghana’s sovereign debt rating.

    This, the Central Bank noted effectively blocked Ghana’s access to the international capital markets in 2022, a resource which the budget had relied on to borrow about US$3 billion annually to help close the financing gap.

    Losing access to the international capital market for new financing immediately triggered a liquidity crisis for Government, spilling over into a balance of payments crisis as the country had to continue to honour its debt service obligations, energy payments, and import bill.

    In keeping up with these critical external payments, the Bank of Ghana lost US$500 million in external reserves in just two
    months, with no new inflows of foreign currency from the usual annual Eurobond issuance by Government to replenish its reserves.

    Furthermore, to help address Government’s liquidity crisis, the Bank extended additional overdraft to the government to address auction failures and prevent domestic default, and enabled government to meet domestic debt obligations and other critical payments needed to avoid a disorderly halt to economic activity.

    Throughout the first half of 2022, there was no new foreign financing until July when the Afrexim Bank stepped in to support with US$750 million.

    These circumstances led the Government to approach the IMF for support in July 2022.

    Among the corrective measures that were put into place in 2022 to manage the crisis, in particular the major policy effort designed to put Ghana’s debt on a sustainable path included the Domestic Debt Exchange (DDE) program, where the stock of Government of Ghana/public sector debt was to be halved from 105 percent of GDP to 55 percent of GDP by 2028.

    Minority reacts

    On August 9, the Minority in Parliament issued a twenty-one-day ultimatum for the Governor to resign, which has now elapsed. According to the minority, the Governor has overseen irresponsible government spending and has contributed to the persistently high inflation rate, which remained above 40% in August 2023.

    Furthermore, the minority contends that the Central Bank engaged in extravagant expenditures in 2021 and 2022, leading to such a substantial loss. They pointed out that the Bank of Ghana’s foreign and domestic travel expenses amounted to a staggering GHS97.4 million, marking a 246% increase from the previous year.

    Additionally, the Bank of Ghana allocated GHS8.6 million solely for Director’s remuneration, signifying an 87% increase from the previous year’s expenditure. Furthermore, the decision to invest $250 million in the construction of a new head office in Accra was questioned.

    In contrast, Finance Minister Ken Ofori-Atta believes that the central bank remains financially prudent, robust, and is operating efficiently.

  • The day of reckoning is very near – Minority to BoG Governor, Ofori-Atta

    The day of reckoning is very near – Minority to BoG Governor, Ofori-Atta

    Minority leader in Parliament, Dr Ato Forson has reminded the Bank of Governor, Dr Ernest Addison and Finance Minister, Ken Ofori-Atta that their day of accountability is nigh.

    He made this known in a rebuttal statement in connection with Mr Ofori-Atta’s “Stand with Bank of Ghana Governor” agenda. In a write up, the Finance Minister argued that Dr Ernest Addison is a competent professional who should not lose his job for protecting the economy.

    Governor Addison, just like me, has faced major economic hurdles since 2017, inheriting a derailed International Monetary Fund programme and a highly impaired and ethically strained financial industry from our predecessors, having to navigate the serious revenue shocks on the back of COVID-19 and distortions to our supply chain induced by both Covid-19 and international geopolitics,” he wrote.

    The Finance Minister also defended the construction of a new headquarters for the Central Bank, arguing that it is “befitting”.

    In response, Dr Ato Forson noted that the need to justify the “gross incompetence and misgovernance of the leadership of the Bank of Ghana,” by the Minister of Finance, Ken Ofori-Atta “ended up worsening the case of the central bank and deepening its credibility crisis.”

    He noted that it is legitimate for citizens to seek clarifications regarding value for money considerations in executing such a project and whether current circumstances justify a project of that nature as the central bank has made losses in three of the past six years; and is projected to declare a loss again in 2023 and possibly in 2024.

    “The Minister should rather welcome the call for an independent audit into the project and to ensure value for money at the end of the day,” he added.

    Dr Ato Forson concluded by reminding Governor Addison and Mr. Ken Ofori-Atta that “the day of reckoning is very near and they will be held accountable for their collective mess.”

    On August 9, 2023, the Minority issued a 21-day ultimatum for the resignation of the governor of the Bank of Ghana and his deputies. The ultimatum has elapsed, however, the Minority has threatened to protest to demand their removal.

  • Ernest Addison must resign, he is professionally incompetent – Isaac Adongo

    Ernest Addison must resign, he is professionally incompetent – Isaac Adongo

    Ranking Member of Parliament’s Finance Committee, Isaac Adongo, has refuted Finance Minister Ken Ofori-Atta’s characterization of Bank of Ghana Governor Ernest Addison as a capable professional.

    Mr Adongo, who also serves as the Member of Parliament for Bolgatanga Central, asserted that Addison’s management of the economy has been nothing short of calamitous.

    “Is that how you describe someone as professional? That you ignore the laws and wipe out the entire money reserve that is the basis of all monetary policy actions of the government? You have destroyed all of them making the BoG unfit for purpose,” Adongo said in an interview on Eyewitness News on Citi FM on Thursday.

    Mr. Adongo additionally alleged that Dr Addison had not effectively overseen the management of the cedi.

    “If the cedi stabilises at 30% in 2016 and you have moved it to 54%, we should praise you because you managed it better some time ago? Why have you suddenly forgotten how you did it if you are a professional?” Adongo asked.

    Adongo’s remarks came in response to Ofori-Atta’s defense of Addison’s performance, as articulated in an article titled “Citizens – Standing Strong with the Bank of Ghana.”

    Ofori-Atta cited several accomplishments during Addison’s tenure, including safeguarding the stability of the banking system, the establishment of the Consolidated Bank of Ghana (CBG) and the Development Bank of Ghana, successful fundraising exceeding $10 billion in the Eurobond market and AfriExim bank, achieving a historic reduction in inflation to 7.9%, and maintaining a commendable period of currency stability in the nation.

    However, Adongo dismissed these achievements, asserting that they were overshadowed by Addison’s shortcomings.

    “What the Central Bank Governor has done is the worst record that wipes off his entire career in the sector,” Adongo said.