Tag: BoG

  • Ghanaians berate Bank of Ghana after announcement of new GH¢1 coin with security upgrades

    A new version of the GH1 coin with improved security measures has been introduced, according to the Bank of Ghana (BoG).

    “The upgraded GH¢1 coin is bi-metallic with an outer gold and inner silver. The coin has a pronounced rough edge and incorporates a latent image, which appears in a rectangular form below the Scale of Justice at the back,” parts of a statement issued by the BoG read.

    Ordinary, this announcement should be welcomed news to Ghanaians because it will help prevent fraud and help ensure that the country’s currency is secured.

    But Ghanaians on social media are not taking the announcement of the new GH¢1 coin, which will be in circulation from Monday, December 12, 2022, well.

    Some Tweeps have been questioning the time of the move by the BoG and the amount it might have cost the country, given the current economic hardships.

    “Useless people, how much will this cost us huh? as for Nana Addo the least said about him the better,” one Twitter user wrote.

    Some also said that the BOG should focus on stabilising the value of the Ghana cedi rather than issuing new currencies.

    “Under Akufo Addo our currency has depreciated badly n he has introduced new denominations new features on our currency n wiping out some…what development paaa will this bring to the nation, of what benefit is this…Total waste,” another Ghanaian wrote.

  • Debt exchange plan will boost confidence in Ghana’s economy – Addison

    The Governor of the Bank of Ghana, Dr Ernest Addison, has expressed optimism that the proposed Debt Exchange Programme announced by the government will bring some confidence in the economy as well as enhance the efforts of the Central Bank in controlling inflation.

    He noted that the economic challenges which have affected many banks have led to the high cost of borrowing and doing business.

    Speaking at the Annual Dinner of the Chartered Institute of Bankers, Ghana, Dr Addison assured of the Central Bank’s support to financial institutions to provide them with additional liquidity during the exercise.

    “In addition to the near-term adoption of the IMF programme, we will provide a balance of payment support to help with financing gaps, boost investor confidence and restore stability.”

    The Government on Sunday announced a slash in interest payments for domestic bondholders to zero percent in 2023 and pegged 2024 interest payments at 5 percent.

    The government, however, said there will be no haircut on the principal of bonds, adding that individuals with government bonds will have their full investments upon maturity.

    In a public address on Sunday, December 4, on the current economic situation, the Finance Minister, Ken Ofori-Atta said the government will ensure that people’s investments are safe. He further announced that interest payments for domestic bondholders for 2024, will be pegged at only 5% adding that from 2025, the rate increases to 10%

    Meanwhile, the Finance Minister has admonished the media to be circumspect and disseminate the right information regarding the current economic crisis and the government’s debt exchange programme in order not to create unnecessary panic among investors.

    “This debt exchange provides an orderly way to put our economy back on track. These efforts will be complemented by fiscal measures to protect the neediest and most vulnerable in society. The Government expects overwhelming support for this exchange.

    “And in truth, the success of this necessary endeavour depends, of course, upon the public’s cooperation. That will also mean the media being helpful in disseminating the right information to economic actors. We are all in this together, and we intend to get out of this together,” Mr Ofori-Atta said.

    Source: Citinews

  • US partly to blame for Ghana’s economic strain – BoG

    The Central Bank has attributed some of Ghana’s current economic crisis to external factors that arose as a result of the United States of America’s (U.S.A.) efforts to stabilise their economy.

    This was stated in a report issued by the Bank of Ghana (BoG) following its 109th Monetary Policy Committee meeting on November 28.

    The BoG, in its report, made sure to emphasise the US’s role in escalating economic conditions for several countries around the world, including Ghana, while citing a number of factors that have contributed to Ghana’s current economic situation.

    According to the Central Bank, when the US Federal Reserve revised some of its policies, it resulted in “tight global financing conditions and a stronger US dollar against major international currencies.”

    In September 2022, the Federal Reserve raised its benchmark interest rate by 0.75 percentage points, the third increase in a row, bringing the Fed rate to 3%-3.25% By doing so, the US central bank, as part of efforts to check its inflation (8.2% as of September), increased demand for the dollar from foreign investors attracted by the higher returns available in the country.

    Since the US dollar is the existing currency for global trade, emerging markets faced a rise in the cost of imports.

    According to the Bank of Ghana, these external shocks have had severe consequences on the Ghanaian economy, reflected in high and rising inflation and depreciation of the local currency.

    “These developments have spilled over into currency pressures and imported inflation, complicated access to external capital markets, and resulted in acute capital outflows, especially in emerging markets and frontier economies,” the Central Bank added.

    Per the Bank’s report, the foreign exchange market witnessed increased volatility, with intense pressure on the local currency, especially in September and October 2022.

    Other external factors that led to the significant drop in the value of the cedi include; the sovereign downgrades, the de facto closure of the international capital market, portfolio reversals, and increased demand for foreign exchange amid supply constraints.

    As of November 24, 2022, the Ghana Cedi cumulatively depreciated by 54.2 percent against the US dollar.

    The local currency lost 48.9 percent and 49.9 percent of its value to the Pound and Euro, respectively.

    In comparison with the same period of last year, the Ghana Cedi was much stronger.

    It depreciated by 2.6 percent and 0.2 percent against the US dollar and the Pound, respectively, and appreciated by 6.6 percent against Euro.

    Since revising the interest rate, the US has seen its inflation rate drop to 7.7% as of October 2022.

  • BoG will ensure banks remain solvent – Dr Addison

    Dr. Ernest Addison, the governor of the Bank of Ghana (BoG), has expressed worry about the solvency of some Ghanaian banks.

    According to him, the Central Bank will put in measures to ensure that banks remain solvent. This, he said is the most important task of the Central Bank.

    The decision by the BoG comes as the government prepares to restructure its debt to pave way for an International Monetary Fund (IMF) bailout. This will include haircuts to bondholders.

    Dr. Ernest Addison explained at a media briefing that: “The good thing is that we think that there are adequate buffers. Nevertheless, the Central Bank will put in measures that will ensure that the banks remain solvent.”

    On the subject of Ghana’s galloping inflation, the Governor said, “The inflation forecast shows that inflation will likely peak in the first quarter of 2023 and settle around 25% by the end of 2023. This forecast is conditioned on the continued maintenance of the tight monetary policy stance and the deployment of tools to contain excess liquidity in the economy.”

    He noted that there are some risks associated with inflation such as additional pressures from the proposed VAT increase in the exchange rate have to be monitored.

    Dr Addison added that “to continue to anchor inflation expectations, the committee, therefore, decided to increase the policy rate by 250 basis points to 27%.”

  • BoG’s decision to halt forex support for import of rice and others is bad, says Kofi Bentil

    Kofi Bentil, the vice-president of IMANI Africa has described the decision by the Bank of Ghana (BoG) to halt forex support for imports for some eight items as a bad move, which will badly affect the poor.

    The items include rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods.

    The move, according to the central bank, is in accordance with the president’s directive, issued in his recent address on the Ghanaian economy, made to the nation on Sunday 30 October 2022.

    An electronic message from the Bank of Ghana to banks in the country said: “In accordance with the president’s directive, issued in his recent address to the nation on the Ghanaian economy on Sunday 30 October 2022, the Bank of Ghana will no longer provide FX support for the imports of rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods.”

    “Please be advised and act accordingly,” the Bank said.

    Reacting to the development on Facebook, Bentil said the policy will force importers to rely on the open market for forex, adding that it will drive up prices of goods.

    “Another round of policy incoherence has been unleashed. We will all suffer, especially the poor.

    “You support essentials whose price increase will affect the poor. Toothpicks, pasta, fruit juice, bottled water and ceramic tiles are NOT essential. You don’t need to support their imports.

    “If you withdraw support. You haven’t reduced demand, you’ve just created shortage, so The importers will buy FOREX from the open market and drive-up FOREX rates. And that will also drive-up prices of these essentials and everyone will suffer especially the poor,” Bentil posted.

  • Ghana Stabilisation Fund faces depletion – PIAC warns

    The Public Interest and Accountability Committee (PIAC) has hinted that the Ghana Stabilisation Fund (GSF) risks facing a devastating depletion.

    According to the PIAC, the Finance Minister’s decision to cap the GSF at $100 million and use excess funds from the Fund for other emergency purposes is putting a strain on the Fund.

    The objective of the Ghana Stabilization Fund is to cushion the impact on or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls.

    However, PIAC disclosed that the decision by Ken Ofori-Atta to cap the fund at $100 million is taking a heavy toll on the fund.

    Speaking to the media on the sidelines of the 2022 Semi-Annual Report on Petroleum Funds, the Chairman of the Public Affairs and Communications Sub-Committee at PIAC, Eric Defor, noted that if the country is hit with an unforeseen situation, there will be resources available to cushion the economy

    He further lamented that “the retention of the current cap of $100 million in the GSF for the year 2022 is not in accordance with the formula stipulated in L.I2381. A proper application of the formula would have returned a figure of US$460,633,074.02The Minister of Finance, in determining the cap on the GSF, should comply with the relevant provisions of L.I 2381.”

    “It appears that for the past three years the $100 million cap has remained, and should there be another emergency, there will be no resources available in the fund to support the budget, and this we find a challenge,” he added.

    Highlighting the impact of the cap, PIAC revealed that at the end of the first half of 2022, the fund generated only $373 million.

    Describing the development as a threat to the economy, the committee, called on parliament to review the Petroleum Revenue Management Act, which gives power to the Minister of Finance to use discretionary powers to set the cap.

    Source: The Independent Ghana

  • BoG overdraft necessary and apt, it helped to keep gov’t machinery running – Analyst

    A financial analyst, Dr Amos Anim has commended the Bank of Ghana for providing financing to keep the government machinery running.

    Dr Amos Anim indicated that the BoG overdraft will go a long to help the country as the government seeks a programme under the International Monetary Fund (IMF).

    “It is a fact that, but for the Bank of Ghana (BoG) overdraft to the Ministry of Finance, payments of salaries would have been difficult.

    Dr Anim further explained that because government is paying debts, it needs funds to ensure payment of salaries.

    In his view, even Members of Parliament would not have been able to receive their salaries but for the overdraft.

    “Without BOG overdraft nobody would have received salaries including parliament,” he said in an exclusive interview with 3news.com on Sunday.

    “You can imagine what will happen in this country if government workers aren’t paid their salaries.The BoG overdraft has ensured that no chaotic situation happens .Government machinery working smoothly.”

    “We are all  aware that the execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review,” he further said in a separate write up.

    He made these comments in reaction to a press engagement by the Member of Parliament for Bolgatanga Central, Isaac Adongo, who accused the Bank of Ghana for financing government.

    “Hon.Adongo is a member of the Finance Committee in Parliament. I don’t expect him to be making this statement. He knows and is aware of the current situation. As a member of the Finance Committee, he is  aware of the issues. ”

    “Hon. Adongo is aware that without BoG overdraft, he wouldn’t receive salary. ”

    “We expect our honourable MPs to be patriotic and support initiatives that will promote the good of the people of Ghana.  ”

    “ Parliament is  in session now. I am very sure the Ministry of Finance at the appropriate time  will engage Parliament  on the overdraft .”

  • ‘Stabilize the Ghana Cedi’ – Otumfuo urges BoG

    The Asantehene, Otumfuo Osei Tutu II, has appealed to the Bank of Ghana to take necessary steps to stabilize the forex market.

    In a speech read on his behalf at the 19th Ashanti Business Excellence Awards by Sewuahene, Nana Kwaku Sarkodie, the Asantehene expressed worry over the depreciation of the local currency against other foreign trading currencies.

    He urged the central bank to implement measures to bring predictability to Ghana`s export and import trade, as well as other international financial transactions.

    “I will like to make reference to the unsettling turbulence which has characterized Ghana’s foreign currency market, Since the beginning of the year, there has been an astronomical depreciation of the cedi against Ghana’s major foreign currencies, particularly the US Dollar.

    I have no doubt that the Bank of Ghana is doing its best to remedy the situation, but the central bank is doing its best to remedy the situation, but I must urge the central bank to urgently take all the requisite steps within its competence to return the foreign market to stability, in order to bring predictability to Ghana`s export and import trade, as well as other international financial transactions”, he said.

    The cedi ended last week with a marginal appreciation, but the cedi has depreciated again to GH¢14.20 to one dollar which is the average quote by the forex bureaus.

    According to the Bank of Ghana, however, the local currency is selling at GH¢13.014 on the interbank market. The cedi is also going for ¢15.60 and GH¢13.60 to one pound and one euro respectively.

    The free fall of the cedi coupled with the recent economic crisis in the country has triggered calls for immediate measures to be implemented by the government to resolve the situation.

    President Akufo Addo in his address on Sunday, October 30, announced some measures the government intends to put in place to address the fall of the cedi and the current economic crisis.

  • BoG denies colluding with illegal forex traders at Accra

    The Bank of Ghana (BoG) has strongly denied claims of collusion with illegal foreign exchange traders (forex) at the Central Business District in Accra to transfer funds offshore.

    The Central Bank in a statement on Tuesday, November 1, described the allegations by the Director of Research at the Trades Union Congress (TUC) Dr Kwabena Otoo as “reckless and unfortunate”.

    “It has come to the attention of the Bank of Ghana that Dr Kwabena Nyarko Otoo of the Trades Union Congress passed an unfortunate remark about the Central Bank on Newsfile on Joy News TV/Joy FM on Saturday, 29th October 2022.

    “Dr. Otoo, on the programme, said there is evidence or growing suspicion that Bank of Ghana is actively collaborating with some operatives at Cowlane in Accra to illegally transfer funds offshore. Bank of Ghana categorically denies the said allegations and also considers them extremely reckless. We would have expected that such strong allegations would have been supported by the requisite evidence, and not left at pure conjecture, mere suspicion or hearsay. This is especially so considering the quarters from which the allegations were made.”

    The BoG further advised the general public to completely disregard these comments and be assured that the Central Bank, is focused on price stability, and doing all within its power to reduce the rising general level of prices.

    Source: Citi News

     

  • We are not engaged in any illegal transfer of funds offshore – BoG refutes claims

    The Bank of Ghana has dismissed claims that it was actively collaborating with some operatives at Cowlane in Accra to illegally transfer funds offshore.

    This comes after the Director of Research at the Trades Congress (TUC), Dr. Kwabena Nyarko Otoo had alleged there was ‘evidence or growing suspicion’ of the said activity.

    Dr. Otoo made the claims while speaking on the October 29 edition of Newsfile on Joy News TV.

    But the Central Bank in a statement sighted by GhanaWeb categorically denied the allegations and also considered them as extremely reckless on the part of Dr. Kwabena Nyarko Otoo.

    “We would have expected that such strong allegations would have been supported by the requisite evidence, and not left at pure conjecture, mere suspicion or hearsay. This is especially so considering the quarters from which the allegations were made,” the statement said.

    “We advise the general public to completely disregard these comments and be assured that we, as a Central Bank, are focused on our mandate of price stability, and doing all within our power to reduce the rising general level of prices. We are doing this guided by our core values of accountability, professionalism and integrity, and in accordance with law,” the BoG added.

    The Bank of Ghana, therefore, urged the public to desist from making such unfounded allegations in the future.

    It further assured collaboration with relevant stakeholders including law enforcement agencies to discourage and penalize the activities of illegal foreign exchange operators in the country.

     

    Source: Ghanaweb

  • ‘We will soon overcome economic challenges’ – BoG

    The second Deputy Governor of the Bank of Ghana (BoG) has stated that even though economies around the world will face difficult times, Ghana will overcome its challenges as the right policies are put in place.

    Elsie Addo Awadzi citing the International Monetary Fund’s (IMF) prediction that there may be a global recession in 2023 noted that developing countries like Ghana are in a unique position to take advantage of the situation to accelerate economic development.

    She was speaking at the 21st annual Chief Executive Officers Conference for Rural and Community Banks in Ho, in the Volta Region.

    “Just yesterday, the IMF released its latest numbers on the global economy and the outlook for 2023 is a global recession. The whole world’s economy is in trouble”, she stressed.

    She added that the “large unusual threat from the Covid-19 pandemic, the Ukraine-Russia war, from the unprecedented levels of inflation.

    “Even in the advanced economies talking about 10%, 11% inflation which used to be a developing country’s phenomenon, today in the US, the EU, the UK are struggling with it and you see interest rates, as a result, rise very high, in their 20s”.

    She asserted that the development had resulted in the financing of emerging and developing economies as “almost non-existence”, adding that investors would pick developed economies such as America and Europe for businesses in quest of higher yields.

    Mrs Awadzi disclosed that her outfit is working with the Ministry of Finance and other key stakeholders to conclude discussions with the IMF towards a Reform Program that would help transform and restore the country’s economy.

    “We at the Bank of Ghana are confident about the outlook for our economy. The current high inflation and Cedi depreciation are temporary and we must avoid speculative behaviour that only works against attaining stability sooner,” she advised.

    She also entreated rural and community banks to leverage technology to improve service delivery as they remain essential players in the banking industry, and continue to provide critical financial services to micro, small and medium-sized enterprises and individuals.

    She detailed that to enhance operations of the rural and community banks, the Finance Ministry and the Bank of Ghana had decided to support the upgrade of the ARB Apex Bank’s e-banking platform and the modernization of the management information system of the rural and community banks.

    This, she said, forms part of the Financial Sector Development Project aimed at ensuring efficient service delivery to he ever-demanding customers.

    “Digitalisation comes along with its own complexities and risks, including cyber security risks, third and fourth party/outsourcing risk, data privacy breaches, technology failure risk, increased AML/CFT risks, and consumer protection risk among others. Needless to say, a lot is required by way of strong governance and risk management systems to help mitigate these risks, as financial institutions seek to exploit the benefits of digitalisation.

    RCBs will therefore need to augment their capital base as needed in order to deploy more sophisticated systems and structures in line with the Bank of Ghana’s 2018 Cyber and Information Security Directive. The Directive provides for the adoption of minimum technical, governance, data protection protocols, and transaction monitoring and fraud detection and mitigation tools, to help mitigate key risks from digitisation”, she said.

    Source: Myjoyonline

  • Ghana’s debt stock skyrockets to ¢402.4bn -BoG

    The October 2022 Bank of Ghana (BoG) Summary of Economic and Financial Data has revealed that Ghana’s public debt stock is now at ¢402.4 billion as of July 2022.

    This, according to the central bank, is equivalent to 68% of the Gross Domestic Product and is in sharp contrast to the projected 104.6% of debt to GDP ratio in 2022 by the World Bank.

    In dollar terms, the country’s debt dropped marginally to $53.2 billion in July 2022, from $54.4 billion in June 2022.

    Based on the data, the nation did not borrow fresh funds from the international market during the period. However, the debt level will go up going forward, follow- ing the $750 million Afrieximbank loan that came in August 2022.

    According to the data, the external debt remained largely unchanged at $28 billion, equivalent to 35.8% of GDP.

    The domestic debt however has been going up since January 2022 because of the significant bor- rowing by the government in the domestic financial market.

    The domestic debt stood at ¢190.3 billion in July 2022, from ¢190.1 billion in June 2022.

    Data available shows that the domestic debt began the year at ¢181.9 billion in January 2022 and then went up to ¢185.4 billion in February 2022 and ¢190.1 billion in March 2022. It subse- quently shot up to ¢189.2 in April 2022 and ¢188.5 billion in May 2022.

    On the other hand, the financial sector resolution bond fell by ¢100 million to ¢14.4 billion in July 2022. This is equivalent to 2.4% of GDP.

    The total public debt stock of the country dropped to ¢388.1 billion in April 2022, from ¢392.1 billion in March 2022. It later went up marginally to ¢389.2 billion in May 2022 and subsequently to ¢393.4 billion in June 2022.

    Meanwhile, the World Bank in its latest Africa Pulse Report classi- fied Ghana as a high debt distress country as it projects the nation’s debt to Gross Domestic Product (GDP) of 104.6% by the end of 2022.

    According to the report, debt is expected to jump significantly, from 76.6% a year earlier, amid a widened government deficit, mas- sive weakening of the cedi, and rising debt service costs.

    Source: gbcghanaonline.com

  • Loans to become more expensive as BoG hikes policy rate to 24.5%

    The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has increased the Policy Rate by 250 basis point to 24.5%.

    This is the highest policy rate increase since 2017.

    The rate hike means it will become more expensive to borrow from the banks, a situation that will push the cost of living and doing business in the country further up.

    Addressing the media, the Governor of BoG, Dr Ernest Addison, explained that the committee reached the decision in order to check the rising rate of inflation as the country negotiates with the International Monetary Fund (IMF) for an economic programme.

    “Inflation remains elevated and the balance of risks is on the upside. Although the forecasts are for monthly inflation to continue to slow down, the risks are on the upside, emanating largely from pass-through effects of the currency depreciation, the recent upward adjustment in utility tariffs, and rising inflation expectations”.

    “The Committee remains committed to re-anchoring inflation expectations and returning to a disinflation path,” Dr Addison added.

    Interest rates surge

    The Bank of Ghana also said short-term interest rates on the money market have reflected recent developments, while medium-term to long-term rates have remained relatively behind the yield curve.

    For example, while the discount rate on the 91-day instrument has increased to 29.7% in September 2022 from 12.5% in September 2021, the coupon rates on the 7-year, 10-year, 15-year, and 20-year have remained unchanged at 18.1%, 19.8%, 20.0% and 20.2% respectively.

    The interbank market weighted average rate has increased to 22.05% in September 2022 from 12.61% in September 2021, consistent with the rise in the policy rate.

    Average lending rates of banks have also adjusted upwards to 29.81 per cent in September 2022 from 20.20 per cent recorded in the corresponding period of 2021.

    Policy rate gone up by 9.5% since March 2022

    Since the Bank of Ghana first increased the policy rate in March 2022, the interest policy rate has gone up by 9.5%.

    The Central Bank increased the policy rate by 2.5% on March 25, 2022, to 17%, and subsequently increased it on May 23, 2022, to 19%.

    It again adjusted it upwards by 300 basis points to 22% in August 2022.

    Source: Myjoyonline

  • Capping fuel prices wrong policy, says BoG

    Dr Ernest Addison, the Governor of the Bank of Ghana (BoG), has said capping fuel prices is a wrong policy.

    There have been calls for the government to intervene and cap the prices of fuel to cushion consumers.

    But speaking at the 108th MPC press briefing in Accra on Thursday (6 October), Addison said, “Capping fuel prices is not an innovation. In fact, it is a wrong policy. When you have fuel prices rising and you also have a budget deficit problem, who is going to pay for the difference of the cost of fuel?”

    “That will create further fiscal subsidies and worsen your fiscal deficit problem that we are all trying to resolve. So on the contrary, we should really be pushing towards full cost recovery to minimize the burden on the budget,” he added.

    Oil prices held near three-week highs on Thursday after OPEC+ agreed to tighten global crude supply with a deal to cut production targets by two million barrels per day (bpd), the largest reduction since 2020.

    Brent crude futures edged down 16 cents, or 0.2%, to US$93.21 per barrel by 1020 GMT after settling 1.7% up in the previous session.

    U.S. West Texas Intermediate (WTI) crude futures lost 14 cents, or 0.2%, to US$87.62 after closing 1.4% up on Wednesday.

  • BoG partners key players in financial sector to address challenges

    The Bank of Ghana has engaged players in the financial space to address possible threats to the sector in order to achieve a sound and safe financial system.

    To this end, the Central Bank, says it is committed in ensuring that its financial inclusion agenda is achieved in no time.

    Speaking at the maiden edition of the Regulatory Sandbox Engagement Forum, on behalf of the first Deputy Governor of the Bank of Ghana, Head of FinTech and Innovation Office, Kwame Oppong, underscored the importance of such engagements with financial sector players.

    “Let me underscore the importance of responsible innovation in this endeavor. Globally, sustainability has taken centre stage in all spheres of human activity. The need to assess the possible negative impact of our innovations on the present and future societies has become more critical than ever”.

    “Adoption of responsible innovation presents a unique national advantage with the potential to attract investments into our FinTech ecosystem for the creation of employment and wealth”.

    Mr. Oppong also addressed issues of privacy and confidentiality within the fintech space.

    “Let me address the fintechs regarding issues of privacy and confidentiality. Bank of Ghana as a regulator of financial service maintains the highest level of confidentiality and secrecy.”

    “We would like to assure you that every staff is committed to an oath of secrecy and under no circumstance will third party information be disclosed. A breach of the secrecy requirement attracts serious sanctions including dismissal”, he stressed.

    Source: Myjoyonline

  • BoG postpones routine MPC meeting over IMF team visit

    The Bank of Ghana’s (BoG) Monetary Policy Committee (MPC) will not be holding its routine quarterly meeting today, Monday, September 26, 2022, as scheduled.

    A statement from the Central Bank last Thursday said the rescheduled meeting will now coincide with Government’s next round of engagements with the International Monetary Fund (IMF).

    The Fund is scheduled to begin these rounds from September 26 to October 7, on Government’s policies and reforms that could be supported by its lending arrangement.

    The team, which will be led by its Mission Chief for Ghana, Stephane Roudet, is also expected to further engage with other stakeholders in the course of the visit.

    Following the development, the Monetary Policy Committee says it will announce the next monetary policies on October 7, the day the engagements with the IMF will be concluded.

    The last IMF mission to Ghana was between July 6 and July 13, 2022. The team used the opportunity to assess Ghana’s economic situation and discussed the broad lines of the government’s Enhanced Domestic Program that could be supported by an IMF lending arrangement.

    The IMF team met with Vice President Bawumia, Finance Minister Ofori-Atta, and the Governor of the Bank of Ghana.

    The team also met with the Parliament’s Finance Committee, civil society organizations, and development partners, including UNICEF and the World Bank, to engage on social spending.

    Ghana is currently looking to secure a $3 billion loan from the IMF.

     

     

  • Chamber of Mines to sell 125,000 ounces of gold to BoG

    Gold-producing member companies of the Ghana Chamber of Mines will, between now and December 2022, sell about 125,000 ounces of gold to the Bank of Ghana (BoG) under the central bank’s Domestic Gold Purchase Programme.

    The decision followed a meeting between Vice President Alhaji Dr Mahamudu Bawumia, some other members of the Economic Management Team, the Bank of Ghana, the Ministry of Lands and Natural Resources, Minerals Commission, PMMC as well as the leadership of the Chamber to consider the implementation of the BoG’s Gold Purchase Programme in the light of the country’s economic challenges.

    Ahead of that meeting, Newmont Ghana had already sold 3,500 ounces of gold to the Bank of Ghana as part of the programme.

    Vice President Dr. Bawumia noted after the meeting that “it was agreed that to help shore up the foreign exchange reserves of the Bank of Ghana, starting September 1st, the Bank of Ghana will purchase a portion of the output of the gold mining companies on a continuous basis at world market prices, but payment will be made in Ghana cedis”.

    This will represent a significant and sustainable addition to Ghana’s foreign exchange reserves over time and strengthen the country’s balance of payments position”, H.E. the Vice President added.

    President of the Chamber, Joshua Mortoti stated that “as good corporate citizens the Chamber supports the programme”. Noting that the Gold Purchase Programme will be mutually beneficial to all stakeholders.

    On his part, the Chief Executive Officer of the Chamber, Dr. Sulemanu Koney, stated that members of the Chamber would further engage the Central Bank to fast-track the implementation of the programme.

    Discussions on the Gold Purchase Programme started in 2020 between the BoG and gold-producing member companies of the Chamber to support Ghana’s foreign exchange reserves.

    The Ghana Chamber of Mines is the main minerals industry association in Ghana. The Chamber represents the collective interests of companies involved in mineral exploration, production and processing in Ghana.

  • Phasing out ¢1, ¢2 notes will further hike inflation – IEAEA Director of Research

    The Director of Research at the Institute of Economic Affairs, Dr. John Kwakye is warning of further hikes in inflation if the Bank of Ghana phases out the 1 and 2 notes as planned.

    In a tweet, he said the planned move will not only put pressure on the 5 note but will also trigger higher inflation.

    “Phasing out 1 and 2 cedi notes from the economy as planned by BoG will not only put pressure on the 5 cedi notes, but will also further fuel inflation”

    Dr. Kwakye who is an immediate past member of the Monetary Policy Committee of the Bank of Ghana explained further that the country may undertake a redenomination of the local currency again in the future if it does not address the rapid depreciation of the cedi and inflation.

    “If we don’t rein in inflation and cedi depBoGreciation, it won’t be long before we undertake another redenomination.”

    The country’s inflation is one of the highest on the continent so far this year.

    It hit 33.9% in August 2022, the highest in 21 years, data from the Ghana Statistical Service (GSS) revealed.

    This is expected to increase the cost of borrowing by raising interest rates further, and consequently trigger increase cost of living and doing business.

    Source: Myjoyonline

  • BoG to impose sanctions on banks that breach digital financial services guidelines

    The Bank of Ghana may impose on banks or Specialized Deposit-Taking Institutions, an administrative sanction of not more than 10,000 penalty units for breach of new guidelines on digital financial services.

    In the case of continuous breach, an additional penalty of not more 50 penalty units shall be imposed for each day the breach continues.

    This is in accordance with section 92 of Act 930.

    Again, in accordance with section 44 of the Non-Bank Financial Institutions Act, 2008 (Act 774), the Central Bank may impose on a non-bank financial institution, an administrative sanction of not more than 10,000 penalty units for breach of this directive.

    In the case of continuous breach, an additional penalty of not more 50 penalty units shall be imposed for each day the breach continues.

    The Disclosure and Transparency Directives for digital financial services and products is aimed at providing the minimum disclosure and transparency framework to guide providers of Digital Financial Services and Products.

    The objectives of the directive according to the Central Bank is to provide a framework to guide providers with regard to the disclosure of information pertaining to digital financial services and products in a manner that repose trust and confidence in consumers, protect consumers of digital financial services and products by ensuring that institutions that provide these services, do so in a transparent and fair manner by disclosing to the consumers and prospective consumers, among others.

    Delivery of information

    The report stated that providers (banks, SDIs) shall ensure that all materials provided to consumers, are clear, complete, accurate, understandable and not misleading regardless of the delivery channel.

    Again, they shall be liable for all information delivered to the consumer.

    Delivery Channels

    A provider shall ensure that delivery channels for DFS do not expose consumers to undue risk of scams and fraud.

    They shall ensure consistency in the style and delivery of information and consistency in the medium of communication.

    Channels to deliver transaction confirmation

    At a minimum, a provider shall deliver a transaction through a short messaging service (SMS) or electronic mail (email).

     

     

    Source: Myjoyonline

  • BoG commended for easing imports and exports bottlenecks

    Chief Executive Officer of the Ghana Shippers’ Authority (GSA), Ms Benonita Bismarck, the has commended the Bank of Ghana (BoG) for streamlining bottlenecks in exports and imports to shore up revenue for accelerated development.

    The measures, among others, include the need for repatriation of proceeds through the establishment of Letters of Commitment (LoC) to ease the challenges of export proceeds repatriation.

    Addressing a forum for exporters and importers in Cape Coast, Ms Bismarck said LoCs are aimed at achieving repatriation of export proceeds to enable the BoG to realize boost its foreign exchange reserves.

    The discussions largely centered on LoC requirements for the repatriation of export proceeds for importers, exporters, industry stakeholders, and other developments in the dynamic shipping environment.

    Also, exports to major trading countries are the backbone of the government’s revenues, therefore, the move will: be “Currency stability, job creation, and industrialization drive.

    “That will enhance the country’s foreign exchange reserves, support effort at building resilience in the economy, and stabilize the national currency and the overall macroeconomic stability.

    She underscored the significance of LoC requirements to ensure all revenues were fully repatriated into the country through the banking system to ensure that exports and associated earnings were effectively tracked and their repatriation was guaranteed.

    Ms Bismarck also mentioned some challenges with the implementation of the LoC, including inadequate time allocated for the repatriation of export proceeds and blocking of subsequent export transactions for non-repatriation of proceeds beyond 60 days.

    “The others are delays in accessing repatriated proceeds from commercial banks, low exchange rates offered by the banks, high commissions charged by commercial banks, and the unsuitability of the current form of the LOC for small-scale cross border trade.”

    She noted that most of the problems faced by exporters stemmed from non-compliance and inadequate knowledge of the procedures involved, hence the collaboration between the two organizations to remove these bottlenecks.

    Alhaji Musa Ali former Chairman of the Central Regional Imports and Exports Association commended GSA for allowing stakeholders to interact and stressed the need for compliance.

    He, among others, the stakeholders brought to the fore concerns such as inadequate time allocated for the repatriation of export proceeds and blocking of subsequent export transactions for non-repatriation of proceeds beyond three months.

     

    Source: peacefmonline

  • BoG illegally printing money for Government – Isaac Adongo alleges

    The Member of Parliament for Bolgatanga Central, Isaac Adongo, has accused the Bank of Ghana (BOG) of illegally printing money for Government.

    Mr Adongo stated that the central bank is printing new notes to enable the government to cover its expenditure since it is unable to receive funding from international institutions but has to pay high interest rates on loans it acquired.

    Speaking to the press on Monday, July 2022, Mr Adongo said “a man who cannot borrow in Ghana, a man who cannot borrow from abroad, his revenue are not performing, is able to get money to spend a lot of money. Only one thing is happening, the Bank of Ghana is printing money and throwing money at the government.”

    The Bolgatanga Central MP noted that the unapproved printing of notes is a breach of regulations of the Central Bank and other financial sector regulations.

    However, the Central Bank has the mandate to issue and redeem the currency notes and coins in order to keep interest rates low in the hope of driving economic growth.

    But the Bolgatanga Central MP is of the view that the supply of more currency in the economy will exacerbate the country’s inflation rate since more money would be chasing the limited number of goods.

    Mr Adongo further maintained that as more money is circulating within the economy, economic growth is more likely to occur, however, at the risk of price destabilization.

    He concluded that the NDC MPs will take every legal action to stop the illegal printing of money.

    “That is illegal, that is preposterous and we will do everything to get to the bottom of that matter.”

    Taking his turn, the Ranking Member on the Finance Committee of Parliament, Dr. Cassiel Ato Forson, also mounted the same allegation against the Bank of Ghana.

    He claimed that on page 97 of Appendix 2a of the Mid-year budget revealed that BoG printed an amount of GH¢22 billion between January and June 2022 without Parliamentary approval.

    Speaking to the media on the sideline after the presentation of the mid-year budget, Mr Ato Forson claimed BoG “ have printed GH¢22 billion fresh money without the knowledge of Parliament and without informing all of us.”

    “I am saddened, no wonder inflation is galloping, no wonder that our reserves position is dwindling. Because when you create new money out of the thin air, what happens is that inflation will go up and obviously because it is new money, you will end up losing your reserves because there would be new consumption.”

    The Ghana Statistical Service (GSS), has revealed that as of June 2022, the country’s inflation rate stood at 29.8%.

    This is said to be the highest rate recorded since January 2004.

    Source: The Independent Ghana

  • BoG report: Banks lose GH¢ 61m to fraud, 53% Of cases involve staff

    The banking sector in the country last year lost GH¢61 million through fraud and other banking malpractice. This represents a surge of 144 per cent losses due to fraud in the banking sector from GH¢25 million in 2020 to GHC61 million in 2021.

    In all, 53.46 per cent of the incidents of fraud reported last year involved staff of the financial institutions.

    The upsurge in losses recorded for the period was due to the increased use of online payment platforms for fraudulent transactions.

    This was contained in the Banking and Specialised Deposit-Taking Institutions (SDIs) and Electronic Money Issuers (EMIs) fraud report for 2021 issued by the Bank of Ghana.

    Statistics

    Statistics indicate that staff involvement in fraud cases increased to 278, as compared to 253 in 2020, representing an increase of 9.88 per cent year-on-year.

    Rural and Community Banks recorded the highest rate of staff involvement in fraud with a figure of 46.04 per cent, the Universal Banks accounted for 28.06 per cent, while the Savings and Loans companies accounted for 16.55 per cent.

    The report, however, recorded 2,347 attempted fraud cases, which represents a minimal decline of 12.09 per cent or 2,670 in 2020.

    Another significant fraud type was impersonation which recorded a loss of GH¢10 million. This loss was attributed to lack of due diligence on the part of bank staff and customers of financial institutions when carrying out transactions.

    Weak systems

    ATM card/POS related fraud also recorded the highest loss of GH¢22 million. This can be attributed to negligence of some customers and weak systems of some financial institutions.

    The significant fraud types that accounted for this figure included ATM card/POS fraud, impersonation, lending and credit fraud, forgery and manipulation of documents, cash suppression and E-money fraud.

    The increase in the usage of electronic and digital platforms in the financial sector resulted in an increase in ATM card/POS fraud.

    The EMI sector reported a significant number of mobile money (MOMO) fraud incidents and loss values in 2021.

    EMIs also recorded 12,350 mobile money-related fraud incidents in 2021. The total value of fraud reported by EMIs for the 2021 amounted to GH¢14.2 million.

    Rural banks

    Out of 144 licensed Rural and Community Banks, 111 of them, representing 77.08 per cent of the sector submitted fraud reports for the period under review.

    The rate of submissions in the Rural and Community Banking sector increased marginally from 105 institutions in 2020 to 111 institutions in 2021, representing an increase of 5.71 per cent in year-on-year terms.

    For the Microfinance Institutions, out of 180 licensed institutions, 34 of them submitted fraud reports for the year 2021, representing a submission rate of 18.88 per cent. In 2020, 35 MFI institutions submitted fraud reports for the sector.

    Out of the 25 licensed Savings and Loans Companies, 13 institutions submitted fraud reports for the period under review, representing a submission rate of 52 per cent, as compared to a submission rate of 48 per cent recorded in 2020.

     

    Source: Graphic Online

     

  • Registered internet banking customers see 4.7% decline in 2021 BoG

    The Payment Systems Oversight Annual Report of the Bank of Ghana has disclosed that the number of registered internet banking customers reduced by 4.77% to 970,435 in 2021, compared to 2020.

    The report also stated that registered mobile banking customers declined to 4.062 million in 2021, from 4.767 million in 2020.

    However, the value of internet banking transactions, however, went up significantly by 132.30% making GH¢56.24 billion in 2021.

    The value for mobile banking transactions was GH¢26.11 billion in 2021 against GH¢12.94 billion in 2020.

    This represents a growth rate of 101.78%.

    According to the report, the number of ATMs deployed by banks as of the end of December 2021 was 2,278 indicating an increase of 1.83% from what was recorded in 2020.

    POS terminals deployment witnessed a 20.54% increase to 12,643 in December 2021, from 10,489 in December 2020.

    The report also stated that the total number of debit cards issued by banks as of December 2021 was 4.936 million.

    This was an increase of 2.56% over the position in 2020 as international scheme cards at the end-December 2021, was 3,647,285.

    Source:ghanaweb.com

     

  • BoGs supply of dollars to BDCs drops from 85% to 21% CBOD

    The Ghana Chamber of Bulk Oil Distributors (CBOD), has called on other players in the foreign exchange supply market to step up their efforts to ensure the demand for US Dollars by Bulk Distributing Companies (BDCs) is met.

    This, according to the CEO of the Chamber, Senyo Hosi, is important as the quantum of US dollars supplied by the Bank of Ghana has dropped drastically.

    The Bulk Distributing Companies are licensed to import crude oil and finished products, store and distribute to oil marketing companies, among other functions.

    For a long time, the BDCs were struggling to get access to enough foreign exchange at affordable rates to procure their products, a situation that led to some level of uneasiness within the industry.

    In an attempt to resolve the issue of a lack of US dollars for the BDCs, whose work influences the final price of fuel at the pumps, the Bank of Ghana earlier this year, introduced a foreign exchange forward auction program for the BDCs.

    Despite the success of the intervention, the quantum of dollars supplied by the Central Bank, according to the CEO of the Chamber of Bulk Oil Distributors, Senyo Hosi, has been dropping alarmingly over the past few months.

    “The BoG has actually reduced the quantum of its intervention in real terms and also in ratio terms relative to requirements. When we started, [during] the first window, we got $114 million and another $100 million, bringing the amount we got from the BoG in April to $214 million. Then in the next month, the amount that was made available was $125 million and then in June we are seeing $100 million.”

    “Cumulatively, their intervention has been 40% of the requirements that have been submitted over the period. On a month-on-month basis however we have seen a very significant drop from 85% in April to 50% in May, and now we are seeing 21% in June,” he added.

    Mr. Hosi thus highlighted the need for other players in the open market to support the efforts of the Bank of Ghana in the supply of foreign exchange for players that need it in the local petrol sector.

    Source: citinewsroom

  • 3 unregulated investment schemes BoG, SEC have warned Ghanaians about

    In recent times, many people especially the youth and businessmen have lost huge sums of money to scammers. This is because they pumped their monies into unlicensed businesses in unlicensed institutions.

    These companies, although not legit, mostly use celebrities or well known individuals as ambassadors, thereby leading unsuspecting Ghanaians astray.

    With ponzi schemes, these fraudulent investment firms pay existing investors with funds collected from new investors. They usually lure people into the cycle by convincing them of earning more.

    On the other hand is cryptocurrency trading where these scammers work with their syndicate to dupe unsuspecting investors.

    Due to these emerging issues and more, the central bank has made it clear that cryptocurrencies are unapproved for trading in Ghana.

    Currently, the Bank of Ghana and the Security and Exchange Commission (SEC) have issued statements warning the public and investors to desist from trading with Tizaa Ghana Fund, Sidicoin, Freedom coin, among other cryptocurrencies.

    Inasmuch as cryptocurrencies [Bitcoin, Doge coin, Ethereum, Apecoin and so on] are widely used in forex trading, it remains unregulated in Ghana.

    Don’t do business with ‘Tizaa Ghana Fund’ – SEC warns investors, public

    The Securities and Exchange Commission (SEC) on January 15, 2022 cautioned investors and the general public against doing business with Tizaa Ghana Fund.

    A statement issued by the Commission said the Fund has not been licensed to perform any activities in the capital market.

    Prior to SEC’s caution, Tizaa Ghana Fund was offering a 50% return on investments to clients within 10 days.

    The minimum entry capital was GH¢100 and a maximum of GH¢300,000.

    According to reports, Tizaa Ghana had registered over 37,000 people in 3 weeks and operated on Telegram.

    BoG cautions against new cryptocurrency Sidicoin

    On April 27, 2022, the central bank issued a press statement to warn Ghanaians
    against a new cryptocurrency, Sidicoin which is set to be launched soon.

    It stated categorically that the investment scheme has not been licensed and given the greenlight to operate in Ghana.

    “Bank of Ghana has taken note of the impending launch of a cryptocurrency investment scheme named “SIDICOIN”. The public is hereby cautioned that neither this investment scheme nor the Promoters of the company have obtained the approval of Bank of Ghana, to operate in the banking and payment services sector,” part of the release read.

    ‘Freedom coin’ not licensed to operate in Ghana – BoG

    Just like the others stated above, Freedom coin was also shown as a red flag.

    A statement from the Bank of Ghana noted that it has not licensed the operations of any cryptocurrency under its laws.

    “The public is hereby cautioned that neither this cryptocurrency nor the promoting company has approval from Bank of Ghana to operate in the banking and payment sector,” the statement said.

    Source: www.ghanaweb.com

  • E-Cedi must be implemented to forestall disruptions in payment space BoG

    The Bank of Ghana (BoG) has noted that in recent years, the idea of issuing digital currencies by central banks has been topical around the globe.

    The BoG said it is one of the first few African central banks which declared its intention to pilot a Central Bank Digital Currency (CBDC) within the framework of its financial sector digitization program and the overall digitization agenda of the Government of Ghana.

    From the point of the CBDC classification, the BoG said, the digital Cedi (or the eCedi) is a retail token-based CBDC.

    This is a value-based approach that implies an eCedi that represents a token, or a digital value note. Payment is done by transferring the value note from one person to another.

    The concept is similar to cash payment transactions, where payment is done by transferring banknotes and/ or coins from person A to person B.is particularly important that the eCedi is implemented to forestall disruption to the existing payment space.

    For this reason, the eCedi will be integrated into the existing interbank payment systems and mobile money interoperability platform operated by the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS).

    In its report titled “Design Paper of the digital cedi”, the BoG said “The eCedi has to be accessible to everyone and any part of the country. The absence of mobile data networks in the rural areas of Ghana should not serve as a barrier to the use of the eCedi. In other words, the eCedi should work effectively in both online and offline environments.

    “Speed of payment is very important from a consumer`s perspective. The transfer of funds from a payer to a payee should be near-instant, easy to confirm and traceable. Both the sender and receiver should receive a confirmation of a successful transaction. Similar to cash, an eCedi transaction will be free of charge to consumers.

    “By this approach, the eCedi would be a strong contender of cash, promote competition in the payment market and facilitate the provision of innovative value-added services to individuals and businesses by banks and payment service providers at affordable fees and charges.

    “It is particularly important that the eCedi is implemented to forestall disruption to the existing payment space. For this reason, the
    eCedi will be integrated into the existing interbank payment systems and mobile money interoperability platform operated by the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS).

    “In the era of globalization, it is important that domestic CBDCs are designed with the prospects of adaptation for interoperability with CBDCs of other jurisdictions. Efforts to accelerate the integration of the economies of African economies, particularly under the African Continental Free Trade Area (AfCFTA) makes this a key consideration in the eCedi design. The eCedi takes into consideration CBDC standards, making it possible for Ghana to participate in international projects on cross border CBDCs.”

    Source: 3news.com

  • Global oil prices to stay within US$71 and US$79 bracket in 2022 BoG report

    Oil prices on the global market are projected to stay within the US$71 and US$79 per barrel bracket for most of 2022. 

    This is according to a January 2022 Monetary Policy Report released by the Bank of Ghana. 

    The report noted that due to impact of the coronavirus pandemic on economies, oil demand and supply chain disruptions on the global oil market, oil prices will be subjected to some uncertainties in 2022. 

    “The global oil market will be subject to significant uncertainties in 2022, notably due to the resurgence of the COVID-19 pandemic and its effects on economic growth, oil demand, and the production decisions of OPEC+.”

    “Restrictions imposed to mitigate the spread of COVID-19 before the emergence of the Omicron variant raises the possibility of a decline in global oil consumption, leading to downward pressures on oil prices. These factors, among others, could keep oil prices volatile between US$71 and $79 per barrel during the year,” the BoG report noted. 

    Meanwhile, on the global market, oil is currently selling above US$90 with consumers grappling to pay more for the commodity.

    Source: www.ghanaweb.com

  • Stop issuing dud cheques, you will be jailed for at least 3 years BoG cautions

    The Bank of Ghana has once again reminded the public and institutions against the issuance of dud checks.

    A statement issued on Tuesday providing financial literacy education on dud cheques reiterated that anyone who fails to comply with the directive will be jailed, or asked to pay a fine whilst their offence is reported to the credit reference bureau.

    For first timers, the central bank cautioned, “Your financial institution will place you under surveillance for a minimum period of three years when you issue a dud cheque for the first time.”

    “Again, if you issue a dud cheque for the second time within three years of the first offence, your financial institution will report your conduct to the Bank of Ghana,”, adding “your details and the breach shall be recorded in a dud cheque register maintained at the BoG,” it explained.

    But for third time offenders, the Bank of Ghana said consumers will be banned from issuing cheques within the country for a minimum period of three years.

    As part of the financial literacy education, the Bank of Ghana called on the public and institutions to ensure they had enough funds in their respective accounts prior to issuing a cheque.

    When found culpable for issuing dud cheques, the central bank said consumers will be banned from accessing new credit facilities from all financial institutions for a period of three years.

    It added that perpetrator’s names will be published in the national newspapers.

    Source: www.ghanaweb.com

  • Governor has no social media accounts – BoG cautions public

    The Governor of the Bank of Ghana, Dr. Ernest Addison, has no social media accounts, the central bank has said.

    In a photo notice from the bank, it stated that the Governor has no such accounts on any of the social media sites in his name and as such, any account purporting to be his is fraudulent and should be reported.

    “The Governor of the Bank of Ghana, Dr. Ernest Addison, does not have any personal social media account.

    “Any social media account using the name of the Governor is fake and an impersonation,” the notice stated.

    It further asked all who identify any such accounts on social media to report them.

    “Report all impersonations to the Cyber Security Unit of the Ghana Police Service of the Bank of Ghana,” it stated.

    The Bank of Ghana notice concluded with a caution to the public to be wary of such accounts, adding that any engagements with any such accounts will be at the risk of whoever engages with it.

    “Please note that any engagement with such accounts is at your own risk.”

    Source: www.ghanaweb.com

  • BoG affirms commitment to innovation, financial inclusion

    The Bank of Ghana has reaffirmed its commitment to addressing the financial inclusion needs of the unbanked and underserved persons and businesses.

    In a release following the launch of its regulatory and innovation sandbox pilot in collaboration with EMTECH Service LLC., the bank said it remains committed to evolving an enabling and inclusive regulatory environment that promotes FinTechs and supports innovation.

    Within the financial sector, a regulatory and innovation sandbox is a supportive and controlled policy environment that enables firms to test innovative products, services and business models under the supervision of a regulator.

    “Effectively, the regulatory and innovation sandbox will provide a forum for financial sector innovators to interact with the sector regulator to test digital financial service innovations while evolving an enabling regulatory environment,” the bank said.

    “In this regard, the bank and the innovator are able to assess the usefulness, viability and safety of innovations through shared understanding of their respective interests,” it added.

    The sandbox will be available to banks, specialised deposit-taking institutions and payment service providers, including dedicated electronic money issuers, as well as unregulated entities and persons that have innovations that meet the sandbox requirements.

    The central bank noted that innovations eligible for the sandbox environment will have to satisfy broad categories including new digital business models not currently covered explicitly or implicitly under any regulation; new and immature digital financial service technology; and innovative digital financial services products that have the potential of addressing a persistent financial inclusion challenge.

    Within these broad categories, the Bank of Ghana said it will give preference to products and services leveraging blockchain technology, remittance products, crowdfunding products and services, e-KYC (electronic know your customer) platforms, RegTech (regulatory technology), SupTech (supervisory technology), digital banking products and services targeting financial inclusion for women, and innovative merchant payment solutions for micro, small and medium enterprises (MSMEs).

    “Notably, the sandbox is of strategic importance in driving financial inclusion through innovative digital financial services, as it presents the opportunities to reduce time-to-market; allow regulators to learn about innovations faster; encourage innovators to formalise their business and incentivise incumbents to experiment with new ideas; reduce the cost of innovation for innovators; and provide valuable insight for regulators to evolve effective regulations,” the bank said.

    Source: thebusiness24.com.gh

  • We have enough reserves to keep cedi stable in 2021 BoG

    Governor of the Bank of Ghana, Dr. Ernest Addison, has said measures have been put in place to ensure the stability of the cedi in 2021.

    The cedis ended in 2020 with a depreciation of 3.8 percent against the dollar.

    As of the beginning of 2020, the Ghana cedi was trading at GH¢5.54 to a dollar but it closed the year trading at GH¢5.76 to the US currency.

    Speaking on the prospects of the cedi this year, Dr. Addison said the central bank remains resolute in keeping the currency stable throughout the year.

    “We were looking at building reserves to the tune of $300 million. The question is whether the $300 million is sufficient to enable us to guarantee a stable exchange rate in 2021. Obviously, it will help, but it will not be the only solution. As you know, the government has indicated its intention of going back to the capital market in 2021, so all of that will help us to keep the cedi stable,” he said.

    Dr. Addison mentioned that although most first quarters witness an increase in demand for foreign exchange, he is confident the reserves of the central bank will address the seasonal demand.

    “Our currency goes through a seasonal pattern in the first quarter of every year. We see quite a peak demand in the first quarter of every year. We are hoping that the reserves that we have built can help us mitigate that seasonal demand.”

    Analysts have attributed the cedi stability to the government’s ability to secure a US$3 billion dollar Eurobond facility last year before the full impact of the COVID-19 pandemic.

    The coming in of the US$1 billion dollar IMF RCF facility was cited as a factor that ensured the availability of foreign exchange on the market and the eventual stability of the local currency in 2020.

    Source: www.ghanaweb.com

  • First and Second Deputy BoG Governors inducted as CIB honorary fellows

    The First and Second Deputy Governors of the Bank of Ghana have been inducted as Honorary Fellows of the Chartered Institute of Bankers (CIB) at the annual governors dinner held in Accra.

    According to the Chartered Institute of Bankers Ghana, the conferment of Honorary Fellow on the Deputy Governors, Dr. Maxwell Opoku-Afari and Mrs. Elsie Addo Awadzi is in recognition of their “significant contributions to the growth and development of the financial sector in Ghana as well as the structures, processes and systems put in place to create financial stability and strengthen Corporate Governance to ensure equitable socio-economic development”.

    The Deputy Governors of the central bank will now be entitled to use the letters FCIB (HON.) against their names.

    The Chartered Institute of Bankers serves as a professional body for banks and other financial institutions with the aim of establishing ethical standards and providing stimulus for the development of competent and more qualified human resources that will enable the banks to offer efficient and competitive services to meet or exceed the constantly changing customer needs.

    Source: www.ghanaweb.com

  • Money supply showed significant expansion in the first ten months of 2020 – BoG

    Of the total debt stock, domestic debt was GH¢135.3 billion, 35.1% of Gross Domestic Product (GDP), of which the financial sector bailout accounts for 4 per cent of GDP, while external debt was GH¢138.5 billion (35.9% of GDP), Governor of the Bank of Ghana, Dr Ernest Addison has said.

    The government spend over GH¢21 billion of the taxpayers money to clean up the financial sector.

    Dr Addison said the Monetary Policy Committee (MPC) press conference in Accra on Monday November 23 that budget implementation through September 2020 was broadly in line with the revised mid-year Budget estimates following the introduction of fiscal measures to combat the COVID-19 pandemic.

    Provisional data for the first three quarters of 2020, showed an overall budget deficit of 9.0 percent of GDP against the target of 8.9 percent of GDP.
    The primary balance also recorded a deficit of 4.1 percent of GDP, marginally above the target of 4.0 percent of GDP. Over the review period, total revenue and grants amounted to GH¢36.3 billion (9.4% of GDP) compared with the target of GH¢35.7 billion (9.3% of GDP).

    Total expenditures and arrears clearance amounted to GH¢70.9 billion (18.4% of GDP), marginally above the target of GH¢70.0 billion (18.2% of GDP). The deficit was financed mainly from domestic sources.

    “These developments impacted the stock of public debt which was 71 percent of GDP (GH¢273.8 billion) at the end of September 2020 compared with 62.4 percent of GDP (GH¢218.2 billion) at the end of December 2019. Of the total debtstock, domestic debt was GH¢135.3 billion (35.1% of GDP), of which the financial sector bailout accounts for 4.0 percent of GDP, while external debt was GH¢138.5 billion (35.9% of GDP),” he said.

    He added “Money supply showed significant expansion in the first ten months of 2020, reflecting the complementary monetary policy and fiscal stimulus measures taken to support efforts to minimize the impact of the COVID-19 pandemic. M2+ grew by 30.0 percent, year-on-year compared with 16.3 percent in the corresponding period of 2019.

    “The increase in total liquidity was mainly driven by the net domestic assets of the central bank and the commercial banks. Net domestic assets increased sharply by 36.1 percent year-on-year in October 2020, compared with 17.1 percent in the same period of last year, while net foreign assets moderated by 6.0 percent from 13.4 percent over the same comparative period. In terms of components, the growth in M2+ reflected mainly in currency outside banks and demand deposits.

    “Net outstanding claims on the private sector, which also captures repayments to the banking sector, show some moderation since the beginning of the year. With respect to new advances, the data shows that cumulatively from the beginning of the year, new loans to support economic activity stands at GH¢27.4 billion compared with GH¢21.3 billion for the same period of last year.”

    Meanwhile, the MPC has kept the policy rate at 14.5 per cent.

    Source: 3 News

  • Scale up support for SMEs Freda Duplan to BoG

    The Board Chair of the Zenith Bank, Freda Duplan, has asked the Bank of Ghana (BoG) to make deliberate efforts to support small and medium scale enterprises (SMEs) secure loans from banks to grow their businesses.

    She explained that some analysts are asking commercial banks to give out loans to the SMEs below the base points to enable them to expand especially in times of the pandemic.

    However, she said, without the support of the central bank the commercial banks will not be able to give out loans below the base point.

    Ms Duplan was speaking during the Ghana Economic Forum in Accra.

    She said that “there has to be a deliberate decision and support to give them some form of subsidised interest rates.

    “This will have to be done together with the Bank of Ghana, because there is a base lending rate and then on top of it comes.

    “So if the base is already high, it is then very difficult for a bank to go lower than the base lending rate.

    “For those of you who remember, for example, the EU had a lot of subsidies over the years, they have reduced a lot of these subsidies and the interventions. We as a continent and especially as Ghana, are going have to do the same.”

    Source: 3 News

  • License Ghanaian banks to provide Islamic products Gatsi tells BoG

    Commercial banks in Ghana that are interested in rolling out Islamic products should be given the license by the Bank of Ghana (BoG) to do so, Professor John Gatsi, Dean of the Business School at the University of Cape Coast (UCC), has said.

    Islamic banking is banking or financing activity that complies with sharia (Islamic law) and its practical application through the development of Islamic economics. They mostly provide interest free loans.

    As of 2010, Islamic financial institutions operate in 105 countries.

    According to the 2016 World Islamic Banking Competitiveness Report, Saudi Arabia, Malaysia, United Arab Emirates, Kuwait, Qatar, and Turkey represented over 87% of the international Islamic banking assets.

    A 2006 report by ISI Analytics also lists Saudi Arabia at the top and Iran as insignificant.[203][62] In Qatar, Islamic banking assets were valued at $97 billion at the end of 2017, accounting for nearly 81% of total Islamic finance assets, according to QFC Authority chief executive officer Yousuf Mohamed al-Jaida.

    The country also announced the launch of an energy-focused Islamic bank with $10 billion capital in 2019, which would make it the biggest Islamic lender for energy projects in the world.

    Speaking on TV3’s New Day, Professor John Gatsi, who is also an economist said “Any of the commercial banks in Ghana that is interested in putting out Islamic financial products will go in for that license to do so and be begin to offer those product to the public and for businesses.

    “So it is not about whether it is government or it is private. It is for the financial and regulator needs to inculcate its principles to ;provide that window and the road map through which banks will now role pout this financial product.”

    Source: 3 News

  • Mahama did not borrow from BoG to finance 2016 budget – Terkper

    Former Minister of Finance, Seth Terkper has denied claims that the erstwhile Mahama administration borrowed from the Bank of Ghana (BoG) to finance the 2016 budget.

    “As the Minister for Finance at the time, I wish to clarify that the Mahama Administration did not borrow directly from BoG to finance the 2016 Budget.

    “I signed the Non-Lending Memorandum of Understanding (MOU) with the Governor of BoG, as an IMF Conditionality under the IMF Enhanced Credit Facility (ECF) Agreement, even as we went through the Crude Oil Price Shock (2014 to 2016) and Nigeria Gas Supply (Dumsor) crisis…” Mr Terkper said in a statement copied to ClassFMonline.com.

    He explained further below:

    BoG performs various roles on the Financial Markets for Government, including borrowing on behalf of Government (MOF).

    A) Borrowing for (on behalf of) Government from Banks and individuals.

    These short-term and medium-to-long term loan instruments are called T-Bills, Notes, Bonds etc .

    Upon borrowing, they become GoG instruments and GoG loans.

    In the Budgets and Debt Reports, while BoG is shown as the “source” of securing these loans, it does not mean that the Central Bank did the lending directly to Government.

    Hence, it is a big mistake for the FACT-CHECK to classify these as BoG lending directly to the Mahama Government.

    Note that BoG itself is in the Financial Markets to lend and borrow to manage the sector.

    B) BOG Lending TO Govt (directly, on its own).

    These are simply called Short-term Advances to Government in Budgets and Debt reports.

    They did NOT show in Appendix 1 of the 2016 Report because

    (I) there was no new BoG Advance in 2016 and earlier; and

    (Ii) GoG and BoG agreed in 2014 or 2015 to turn the outstanding balance or stock of past Advances into a long-term Bond.

    C) BoG 5% Limit in Act

    While the BoG Act allows it to make an Advance of up to 5 percent to Government, as explained earlier, the IMF ECF Agreement did not allow the Mahama Administration to borrow from BoG.

    D) Conclusion

    The only substantive amount that GoG received from BoG at the time was “Dividend”, as sole Shareholder of the Bank. This routinely shown as Non-Tax Revenue in Budget.

    Source: Class FM

  • REPO trading goes online from October 1 – Bank of Ghana

    The Bank of Ghana has announced that the trading of Repos in Ghana will go online from October 1, 2020, allowing trades to be executed in real time, using a framework provided by the Global Master Re-purchase Agreement (GMRA) a globally recognized legal document.

    This follows the launch of the Guidelines for Re-purchase Agreements in Ghana, which is in line with Section 134 (5) of the Bank and Specialised Deposit Taking Institutions Act (Act 930).

    According to a statement issued by the BoG, all participating banks have been directed to execute a GMRA with each other by September 15, 2020. This will take place prior to the October 1,2020, scheduled commencement of live trading scheduled.

    “Repo counterparties may use the appropriate systems to facilitate their conduct of GMRA based Repos. The buyer of a Repo Security shall mark-to-market using Bloomberg as a pricing source. Where Bloomberg does not price a Repo Security, the buyer and seller shall agree a price for this purpose,” the Bank said.

    Real time trading in repos between banks will significantly improve the capacity of a bank facing short term liquidity challenges to ride through them without any inconveniences for its customers, as such a bank would simply issue repos for cash to other banks over a short, agreed tenor.

    In the anticipation of the loss of value of the collateral security that may be experienced if it is liquidated following an event of default by a counterparty, the buyer shall apply an extra margin at the initiation of the Repo transaction which would serve as compensation.

    In July, 2020, the central bank also announced that GMRA-based repos qualify as eligible financial contracts to which netting arrangements as stated under Section 134 of the Bank and Specialised Deposit Taking Institutions Act (Act 930) can be applied.

    According to section 134 (4), “net termination value” means the net amount obtained after setting off the mutual obligations between the parties to an eligible financial contract in accordance with the provisions of that contract.

    GMRA-based guidelines contain a key feature which allows the transfer of title of collateral securities from the seller to the buyer. The title transfer under GMRA reduces credit and liquidity risk, as it allows the buyer to make use of the collateral during the tenor of the transaction, but return the same or equivalent securities to the seller at maturity.

    Some market analysts have indicated that ultimately, these dealings should boost secondary market trading and price discovery of bonds and offer a cheaper source of short-term funding at increased volumes. Repo transactions between banks fit in well with their agreed strategy of supporting each other with liquidity whenever the need arises so as to prevent the need for the BoG to intervene with regulatory actions that sometimes affect the entire industry in a systemic manner. Such transactions thus serve as a fixed tenor alternative to interbank lending which is usually done on the basis of call which means placements by a bank can be called in any time the lending bank wishes, the timing of which may be inconvenient for the bank receiving the placement and thus is more convenient for the borrowing bank than interbank lending on call.

    Background

    Repos are effective tools for effective monetary policy transmission and serve as a channel through which the central bank can act more swiftly as a lender of last resort during periods of market stress.

    Currently, repos and reverse repos in the domestic financial markets are already serving as effective instruments for the conduct of monetary policy through open market operations by the central bank and as sources of short-term liquidity for market participants.

    According to the Central Securities Depository (CSD), as at end May 2020, a total of GHc 51.63 billion in repo transactions had been settled. Transactions between commercial banks amounted to GHc 56.550 billion, whereas the transactions between BoG as well as SNNIT with commercial banks amounted to GH 725 million and GHc 11.349 billion.

    Source: goldstreetbusiness.com

  • Ex-Venture Capital CEO, others begin refunding money to state

    The three former officials of the Venture Capital Trust Fund who were convicted have started refunding money to the state per the arrangement with the court in order to avoid jail terms.

    Former CEO Daniel Duku was asked to refund over 15 million cedis.

    Irene Anti Mensah, Executive Assistant to the CEO, Frank Aboagye Mensah husband to the executive assistant are both to refund more than two million cedis.

    Speaking at the Public Accounts Committee, CEO for Venture Capital Trust Fund Yaw Owusu Berempong, revealed the three have started paying the amounts after admitting to given loans to themselves in the name of other companies.

    According to him, if the three fail to pay the total amounts in 3 months they will be sent to jail.

    Background

    The three accused persons, Daniel Duku (1st Accused), Irene Anti-Mensah (3rdAccused) and Frank Aboagye Mensah (5th Accused), entered into negotiations with the Attorney General under Section 35 of the Courts Act, 1993, (Act 459), a provision that allows accused persons to offer compensation and restitution to the State for the loss, harm or damage caused the State.

    The accused persons per the agreement changed their plea from a not guilty to guilty and they were convicted on their own plea by the court.

    Fines

    Per the agreement reached, Mr Duku will pay an amount of GHC15,000,000.00 to the Venture Capital Trust Fund (VCTF) and a fine of five hundred thousand Ghana cedis (GH¢500,000.00) to the State.

    Anti-Mensah, is to pay GH1.5M to the Venture Capital Trust Fund (VCTF) and a fine of One Hundred Thousand Ghana cedis (GH¢100,000.00) to the State.

    Frank Aboagye Mensah is to pay (GH¢1,195,000.00) to Venture Capital Trust Fund (VCTF) and a fine of One Hundred Thousand Ghana cedis (GH¢100,000.00) to the State.

    As part of his terms, the first accused, Daniel Duku, is to forfeit about eight (8) buildings at the Agyekum Presidential Villa at Adjiringano and Georgetown Heights 6 apartments of 3 bedrooms each, and five (5) vehicles, including a Porsche Cayenne and Porsche Panamera, to the State.

    The accused persons are expected to make good all the payments within three months from Friday, July 10, 2020.

    Charges

    Per the charge sheet of the State as presented in Court, the first accused person, Daniel Duku was charged with the offences of Wilfully causing financial loss to the Republic contrary to section 179A (3) (a) of the Criminal Offences Act, 1960, (Act 459), Stealing contrary to section 124(1) of the Criminal Offences Act, 1960 (Act 29), Money Laundering contrary to section 1(1) (c) of the Anti-Money Laundering Act, 2008, (Act 749) and Issuing of False cheque contrary to section 313A (1) (6) of the Criminal Offences Act, 1960, (Act 29).

    The 3rd accused person, Irene Anti-Mensah, was charged with the offences of Abetment of crime namely Wilfully causing financial loss to the Republic contrary to sections 20(1) and 179A (3)(a) of the Criminal Offences Act, 1960, (Act 459), Abetment of crime namely defrauding by false pretence contrary to sections 20(1) and 131(1) of the Criminal Ofences Act, 1960 (Act 29) and Conspiracy to steal contrary to sections 23(1) and 124(1) of the Criminal Offences Act, 1960(Act 29).

    The 5th accused person, Frank Aboagye Mensah, on the other hand was charged with the offences of Defrauding by false pretence contrary to section 131(1) of the Criminal Offences Act 1960 (Act 29), Conspiracy to steal contrary to sections 23(1) and 124 of the Criminal Offences Act 1960 (Act 29), Stealing contrary to section 124(1) of the Criminal Offences Act, 1960 (Act 29) and Money Laundering contrary to section 1(1)(c) of the Anti-Money laundering Act, 2008 (Act 749).

    Source: Starr FM

  • It didn’t make sense to continue supporting the collapsed banks – Bawumia

    Vice President Dr Mahamudu Bawumia says government had no option than to shut down some banks and financial institutions in the country.

    He said even though the situation is sad it didn’t make sense to continue supporting these banks that are suffering.

    “It was bad . . . when I saw the numbers at the time it was quite frightening,” he said.

    He said the banks were using the Central Bank’s liquidity support for other purposes.

    This follows claims that government could have used other means to save the banks and prevent the loss of jobs.

    The Vice President who was speaking in a one-on-one interview with Kwami Sefa Kayi on Peace FM’s morning show ‘kokrokoo’ said the then NDC administration was aware of the situation but did nothing about it and rather kept offering liquidity support.

    “The NDC was aware there was a problem . . . these were bad practices of government but we had to step in,” he stated.

    “By the time we got into office things were unraveling; we were on the brink of the collapse of the system so the BoG had to rescue the situation. This is one of the most important acts that have been done to save the economy.”

    Source: Peace FM

  • Cheque fraud in Ghana increased in 2019 BoG

    The number of cheque fraud cases increased marginally by 2.56 per cent from 39 cases in 2018 to 40 cases in 2019, the Bank of Ghana (BoG) has said.

    This, according to the central bank, includes fraud incurred as a result of cloned cheques, stolen cheque leaflets and cheque alteration.

    Notable, however, is the increase in the number of cases reported as cheque cloning, which originates from the operation of syndicates involving staff of financial institutions, telecommunications companies and cheque-printing houses.

    The BoG further announced that the banking industry reported approximately GH¢115.52 million as fraud to the central bank.

    Of the total values reported, the BoG said, approximately GH¢33.44 million, representing 28.96 per cent was reported as losses incurred while approximately GH¢82.06 million, representing 71.04 per cent was recovered.

    The Bank of Ghana recorded a total of 2,295 cases of fraud, representing a 5.4 per cent increase in cases reported in 2018.

    Rural and community banks reported 55 per cent of the total cases, and commercial banks and savings and loans institutions reported 23 per cent and 22 per cent of the cases respectively.

    In total, 83 institutions reported cases in 2019, as compared to 72in 2018.

    Source: Ghana Guardian

  • Treasury bill rates for June 2020 decline to 14.0 percent – BoG

    The Bank of Ghana (BoG) has said the 91-day Treasury bill rate for the month of June 2020 has declined to about 14.0 percent from the 14.8 percent recorded a year ago in 2019.

    According to the Governor of the Bank of Ghana, Dr Ernest Addision, the interest rate on the 182-day instrument also declined to 14.1 percent from 15.2 percent for the period.

    Speaking at the 95th meeting of the Monetary Policy Committee of the central bank on Monday July 26, Dr Addison said; “Rates on the 2-year, 3-year and 5-year instruments decreased marginally to 18.8 percent, 18.9 percent, and 19.3 percent respectively, from 19.8 percent, 19.7 percent, and 19.8 percent.”

    He added; “Yields on the 6-year, 7-year, 10-year, and 15-year bonds remained unchanged at 21.0 percent, 16.3 percent, 19.8 percent, and 19.8 percent, respectively. Yield on the 20-year instrument has moved up from 20.3 percent from September 2019 to 21.5 percent in June 2020”

    The Governor also noted, interest rates on the money market reflected downward trends at the short end and mixed trends at the medium to long-term segments of the market.

    Treasury bills on the other hand, are risk-free investment that entail short-term loans that are guaranteed by the government and used to finance various of its operations. It also offers a benchmark for determining the value of any investment and is cited as one of the most secure and popular investment options in Ghana.

    The maturity of treasury bills spans through a 91-day and a 365-day period with each of them offering different returns on investments.

    For the central bank’s meeting, the Monetary Policy Committee maintained the policy rate at 14.5 percent, citing the need for macroeconomic stability amid the disruption caused by the coronavirus pandemic.

    “The Committee was of the view that the current extraordinary circumstances, with a widened budget deficit and a residual financing gap, would require some monetary restraint to preserve the anchors of macroeconomic stability. In the circumstances, the Committee decided to maintain the policy rate at 14.5 percent,” the Governor explained.

    Source: www.ghanaweb.com

  • BoG boosts repo trading market with new directive

    To further boost repo trading on the Ghana Fixed Income Market (GFIM), the Bank of Ghana has issued a new directive, allowing banks and other contractual counterparts to easily settle differences in repo transactions.

    The directive takes effect from July 2020, in line with Section 134 (5) of the Bank and Specialised Deposit Taking Institutions Act (Act 930).

    This follows the implementation of the Global Master Repurchase Agreement (GMRA)-based Guidelines in April 2020.

    The Bank of Ghana indicated that pursuant to Section 134 of Act 930, all Global Master Repurchase Agreements transacted (GMRA-based repos) qualify as eligible financial contracts to which netting arrangements shall apply.

    According to the section 134 (4), “net termination value” means the net amount obtained after setting off the mutual obligations between the parties to an eligible financial contract in accordance with the provisions of that contract.

    GMRA-based guidelines contain a key feature which allows the transfer of title to collateral securities from the seller to the buyer. The title transfer under GMRA reduces credit and liquidity risk, as it allows the buyer to make use of the collateral during the tenor of the transaction, but return the same or equivalent securities to the seller at maturity.

    Some market analysts have indicated that, ultimately, these dealings should boost secondary market trading and price discovery of bonds and offer a cheaper and increased volume source of short-term funding.

    The repos are effective tools for effective monetary policy transmission and serve as the channel through which the central bank can act more swiftly as a lender of last resort during periods of market stress.

    Currently, repos and reverse repos in the domestic financial markets are already serving as effective instruments for the conduct of monetary policy market operations by the central bank and as sources of short-term liquidity for market participants.

    According to the Central Securities Depository (CSD), as at end May 2020, a total of GH¢51.63 billion of repo transactions had been settled. Transactions between commercial banks amounted to GH¢44.46 billion, whereas the transactions between BoG as well as SNNIT with commercial banks amounted to GH¢725 million and GH¢6.44 billion.

    Source: goldstreetbusiness.com

  • We did not conspire with BoG to collapse Ghanaian banks – Ofori-Atta

    The Minister of Finance, Ken Ofori-Atta says government did not to conspire with the Central bank, the Bank of Ghana (BoG), to collapse some indigenous Ghanaian banks that were affected in the financial sector clean-up exercise.

    According to him, government has no time and energy to collapse Ghanaian banks, urging the people who hold the view that the government conspired with the Central Bank to deliberately collapse some Ghanaian banks to speak the truth.

    He said as of the time the current government took over power from the then governing National Democratic Congress (NDC), all the collapsed banks “were totally insolvent” due to mismanagement which was happening in the financial sector.

    Mr Ofori-Atta, who was presenting the mid-year budget today [Thursday, July 23, 2020] at Parliament, said the government was only interested in fixing the broken economy they inherited.

    “As a serious government as we are, and as patriotic as we are, we absolutely have no time, no energy, to conspire with the central bank to deliberately collapse Ghanaian banks,” he said.

    He explained that as a result of mismanagement in the banking sector, funds of depositors have been locked up with no hope of such depositors accessing their funds.

    Mr Ofori-Atta said what the government did in the banking sector was a usual practice in the banking sector globally, and that the exercise was aimed at straightening the banking sector and boosting the confidence of customers.

     

    Source: Graphic.com.gh

  • BOG dead silent on new cedi notes video – As man captured in footage dies mysteriously

    A video containing huge bundles of the newly printed GHc100 and GHc200 notes believed to be amounting to billions of Ghana cedis, has hit the internet igniting wild speculations among social media users and political party fanatics, as to who owns it and what it was meant for.

    The amount seen in the footage, could only have come from the Bank of Ghana (BoG), as the commercial banks could not be allowed to harbour such.

    The video, which has been making the rounds for some days now, has raised eyebrows, but the BoG is yet to provide answers on ownership of the money estimated to be in the region of GHc4.5 billion or GHc5 billion, and for what purpose, although the video and pictures have been in circulation for some days now.

    However, the lack of answers is not even the interesting part. The only man, whose face was shown in the video identified as Richard Baah Appiah alias “Abrokyire”, The Herald gathered, has suddenly died, fueling fresh speculation that, he might have been murdered by some element among his circles for filming and releasing the footage on the cash.

    He is said to be a card bearing member of the governing New Patriotic Party (NPP).

    Richard is said to have died three days after the video and a picture which was taken of him sitting on the huge cash. He wasn’t sick, The Herald gathered, he just died, while the whereabouts of the person, whose home the said the money was packed continue to be a mystery.

    It is speculated that, Richard was flushed out because those behind the money don’t want it to be in the public domain, since he was the only one whose face was in the picture and could be the only credible source for investigation.

    Other views are that, Richard, might have attempted blackmailing the owners of the cash, hence got killed to silence him.

    Richard is alleged to be the relation or close to an unnamed minister in the Akufo-Addo government whose home the monies were packed.

    The picture of Richard sitting on the arranged bundle of cash, hit the internet at the same time the death of the former General Secretary of the governing NPP and Executive Secretary of the Forestry Commission, Kwadwo Owusu Afriyie aka “Sir John” was reported last Wednesday night.

    Richard, who sat comfortably with his facemask hanged under his chin with another unidentified man behind him at a distance, wore a long sleeve shirt and trousers.

    Minutes after the picture hit social media, a poster showing his one-week celebration also emerged from nowhere revealing the event was marked on Sunday, June 7, 2020, at Akim Manso in the Birim Central Municipality of Eastern Region. It also falls under the Asene Akroso-Manso Constituency where George Kwame Aboagye is the NPP Member of Parliament.

    Akim-Manso, is said to be a community with a population of about 7000 people.

    The town has a presence on Facebook. Indeed, on Saturday, June 6 this year, at 10:58 am a notice was posted from Akim Oda, announcing his week funeral event which took place on Sunday, June 7, 2020, at the “forecourt of the family house” at 8 am.

    It read “Tomorrow is the one-week Celebration of our late brother and a friend, Richard Nana Baah… It will take place tomorrow Sunday, June 7 at Akim-Manso… All have to be there to show our condolences to the bereaved family members…”

    Attached to the message, was black, white and gold electronic poster bearing Richard’s picture. The notice shows he is known within the Akim-Manso community.

    Although details of the 35-year-old were not readily available, a social media user, claimed she knew him from Tema and that she was even at his one-week celebration last month.

    “I know him, he’s late was at his one week just last Saturday. He spent much of his young life in Tema and moved to Accra later but his aunty and family are still in Tema”, Akorfa Adzo Adanuvor said.

    According to Akorfa, Richard spent most of his young life at Tema, but later moved to Accra, while the rest of his family still remained. Another also claimed he knew him and that in Accra; he was based at Asylum Down.

    It is unclear why the one-week event happened in Akim-Manson and not Tema, where he was said to have spent his childhood and where his parents were said to reside.

    It is also unclear, why the event was not held in Asylum Down, where he was said to have relocated after leaving Tema.

    Meanwhile, people continue to speculate on the death of the 35-year-old, saying it might be politically motivated. According to them, Richard might have been killed by people within his political circles, having being captured sitting on the money.

    Before the picture of the deceased surfaced on the internet, a video of the cash had first hit the internet around June 30, 2020, with some faceless youth numbering about four, arranging at one side of what appears to be the hall of a very rich person.

    The leakage of the pictures and video 23 days after the one-week event at Akim-Manso, therefore, suggests someone has had access to the information either from Richard before his death or got it after his death, and decided to release them.

    While the young men, who spoke Akan, fantasized about the bundles of money, legendry Daddy Lumba’s onetime hit, Theresa Abebreseh, was played at the background.

    In the hall where the money was arranged, a framed photograph of the owner of the house was captured in the footage, however, it was not clear enough to identify the person.

    Though none of the young men’s face was shown, one of them who took the video was encouraged by the rest to go ahead and take it, while another indicated that after they were done arranging them; he will also take a shot of it for future use.

    “Yes, I will also take a shot for future use”, he said while they arrange the money in excitement.

    Another teased the other, saying “You, the company you work for have they seen such huge money before”?

    Some party fanatics of both the governing NPP and the opposition National Democratic Congress (NDC), have accused each other of being the owners of the money, claiming it is for the December 7 election campaign.

    What has not been identified since the video went viral, is who exactly is keeping these huge monies in his home at where and for what purpose.

    It is not clear, if Richard, has been buried yet and whether an autopsy had been done on him to know the cause of his death.

    It is also unclear if anything has happened to the rest of the young men, whose voices were heard in the video.

    Source: The Herald

  • BoG urges PPP to boost manufacturing capacity

    The central bank has advocated an increased Public-Private-Partnerships (PPP) in crucial infrastructure development across the country to boost the local manufacturing of key products.

    Mrs. Elsie Addo Awadzi, the Second Deputy Governor of Bank of Ghana said: “We need critical public-private sector investments in key infrastructure over the medium-term to increase the manufacturing capacity of our economy post-COVID-19.”

    Though the country recorded a positive trade balance in 2018, key imports than continue to put pressure on available foreign exchange include refined petroleum (US$738M), cars (US$466M), rice (US$425M), non-fillet frozen fish (US$303M), and delivery trucks (US$274M).

    She said the country needs to re-tool, re-equip and fund the Micro, Small and Medium Enterprises (MSMEs) to leverage technology for increased productivity so that some of the imported item can be made locally and reduce our dependence on imports.

    Mrs. Awadzi, was speaking at Engine Business Network (EBN) Micro, Small, and Medium sized Enterprises (MSME) virtual conference on the theme: “MSME manufacturing capabilities, responding to covid-19 and opportunities beyond” in Accra.

    She called for a renewed focus on equitable and inclusive growth to ensure that the MSME sector, and in particular, women and youth entrepreneurs were not left behind.

    She said the Bank of Ghana has taken steps to improve access to credit for MSMEs through the banks, savings and loans companies, microfinance companies, and rural and community banks.

    Mrs. Awadzi encouraged all the MSMEs to approach their financial institutions to explore financing and other opportunities available for them.

    “I encourage you also to engage actively with the Ghana Association of Bankers, and industry associations representing the savings and loans companies, microfinance companies, and rural and community banks, to help these institutions better understand the needs of members and to fashion out specific products and services to support you,” she added.

    She said the Central Bank was committed to ensuring that policies and regulatory measures help to promote macroeconomic stability and growth, not only for a few, but for all Ghanaians.

    She said by promoting monetary and financial stability, “we seek to create an enabling environment that supports all economic players to contribute their fair share to socio-economic development and nation-building.”

    She said the Bank of Ghana has recently launched the Ghana Sustainable Banking Principles in partnership with the Ghana Association of Bankers and the Environmental Protection Agency.

    These are a set of seven principles adopted by banks in Ghana in November 2019, by which they committed to scaling up lending to five key sectors of the economy in a manner that promotes good environmental management practices and social justice including through gender equity and access to finance for all.

    Mrs. Awadzi said while the impact of COVID 19 on the sectors has been severe, there is much hope with the recovery ahead, and there were enormous opportunities in the post-COVID world.

    “What is more, policy makers have made interventions to help cushion the impact of the pandemic on the MSME sector,” she said.

    Source: thebusiness24online.net

  • Coronavirus: BoG unable to support government if pandemic prolongs Governor

    The Bank of Ghana has hinted that it will not be in the position to financially support the government in mitigating the impact of COVID-19 if the outbreak prolongs.

    The Central Bank has already provided some GH¢10 billion to support the budget in compliance with provisions in the Bank of Ghana law. But Central Bank Governor Dr Ernest Addison said it is unsustainable for the regulator to offer more support.

    Dr Addison who was speaking in a live interview with Graphic Business.

    He said “now if you look at the case of the Bank of Ghana, we have had to finance the budget to the tune of GH¢5 billion. Under the bank of Ghana law, we have an emergency clause section 30 of the Bank of Ghana law allows the central bank in the case of an emergency to provide resources to the budget.”

    The law says that the minster of finance, the governor of the central bank and the controller and accountants general must sit to decide on how much resources the government would need.

    Dr Addison said “we estimated possible support of GH¢10 billion cedis, and we have already dispersed the first tranche of that resource. Obviously, this is an intervention that we cannot repeat because we have tried to minimize central bank financing of the budget in order to minimize its impact in terms of inflation and depreciation of the currency and all of that.”

    However, if the situation does not improve and it becomes protracted, the central bank will not be able to provide the additional resources that will be needed.,” he noted.

    Dr Addison indicated that the cedi has been depreciating because of capital flights.

    He explained “if you look at what has happened worldwide, we have seen capital needs jurisdictions such as ours into the advanced economies. Now when that happens it has an impact on the availability of dollars in Ghana and then that can trigger a depreciation of the currency.”

    “Now if you look at this year 2020, we started the year on a very strong note with very strong reserves and then also we went very early onto the capital market to issue a 3 billion dollar bond.”

    He furher explained that by January and February the cedi was appreciating.

    “If you look at the data very carefully, the Ghana cedis appreciated for nearly 2 months of 2020. Until the global shock came in, in terms of this COVID-19 pandemic and then we saw capital flowing out of countries like ours and therefore the cedi also started losing value. And then of you look at the year to date statistics, you would see that the cedi this year has depreciated by less than 2% because there had been quite a significant appreciation of the currency in the first two months of the year,” Dr Addison explained.

    Source: Starr FM

  • BoG introduces online payment service for collateral registry

    The central bank has introduced an online payment service for the Collateral Registry web-based system.

    A notice issued by the Bank of Ghana (BoG) indicates that the service is aimed at addressing the inconveniences associated with the existing pre-paid mode of payment.

    This online payment service affords clients of the Collateral Registry the option to pay for the services rendered by either Mobile Money (MTN MoMo, Vodafone Cash, and AirtelTigo Money) or Visa/MasterCard.

    During 2019, a total of 96,148 security interests were registered, compared to 82,302 registered in 2018. Also, a total of 239,705 collaterals were registered in 2019, as against 224,583 in 2018. Searches conducted in 2019 were 48,086, representing an increase of 30.3 percent over the 2018 figure.

    Under the statutory mandate of the Borrowers and Lenders Act 2008 (Act) 773, the Bank of Ghana operationalized the establishment of the Ghana Collateral Registry on February 1, 2010, to register charges and collaterals created by borrowers, to secure credit facilities provided by lenders. This was pursuant to its mandate to regulate, supervise and direct the banking and credit system, and ensure the smooth operation of the financial sector.

    The Collateral Registry operates a 24/7 web-based system, which serves lending institutions and the general public. The current modes of payment are the post-paid mode and the pre-paid mode, which require a deposit to be made at the Bank of Ghana.

    Source: goldstreetbusiness.com

  • BoG receives 30 weekly complaints from public on banking issues

    The Market Conduct Office of the Bank of Ghana receives an average of 30 weekly complaints from the public.

    This follows the completion of the Banking and Specialised Deposits-Taking Institutions sector clean-up in 2019 which has compelled the Bank of Ghana to intensify its market conduct supervision.

    The public complaints are received through phone calls, WhatsApp messages, e-mails, and direct walk-ins to the Market Conduct Office located at Cedi House in Accra.

    The central bank said the complaints typically are resolved by the Office within 20 days.

    This was revealed in its assessment of banks and SDIs compliance with its consumer protection regime.

    On-Site Conduct Supervision

    The Market Conduct Office undertakes both off-site and on-site supervision of licensed institutions with the aim of ensuring that these institutions comply with all consumer protection requirements under relevant laws and as prescribed by the Bank of Ghana.

    The maiden on-site conduct examinations were conducted by the Office from November 2019 to February 2020.

    The exercise involved officials of the Market Conduct Office visiting eight selected banks to examine the structures, systems, and processes in place to promote consumer protection and the early resolution of customer complaints, and to generally assess compliance with relevant market conduct rules.

    Specifically, the examinations covered a number of key areas including the Board and Management oversight of the complaints handling function; unfair banking practices; privacy and data protection issues; the ambience of banking halls; disclosure and transparency and the content of marketing material.

    It said the relevant banks have committed to addressing the identified issues within timelines agreed with the Bank of Ghana.

    The Central Bank concluded that it will continue to deploy all legal tools available to it to pursue its financial stability and consumer protection mandate, as well as continue to sensitize consumers on their rights and obligations in their dealings with licensed financial institutions.

     

    Source: Class FM

  • BoG introduces online payment service for the collateral registry system

    In addressing the inconveniences associated with the existing pre-paid mode of payment, Bank of Ghana (BoG) has introduced an online payment service for the Collateral Registry web-based system.

    This online payment service affords clients of the Collateral Registry the option to pay for the services rendered by either Mobile Money (MTN MoMo, Vodafone Cash and AirtelTigo Money) or Visa/MasterCard.

    With this new feature, the Collateral Registry Online Payment System will go live on Monday, 25th May 2020, and will be accessible via the URL www.collateralregistry.gov.g.

    A statement dated 21st May 2020 and signed by Sandra Thompson (Ms) said Under the statutory Mandate of the Borrowers and Lenders Act 2008 (Act) 773, the Bank of Ghana operationalized the establishment of the Ghana Collateral Registry on 1st February 2010, to register charges and collaterals created by borrowers, to secure credit facilities provided by lenders.

    This was pursuant to its mandate to regulate, supervise and direct the banking and credit system, and ensure the smooth operation of the financial sector.

    The Collateral Registry operates a 24/7 web-based system, which serves lending institutions and the general public.

    With reference to the Bank of Ghana NOTICE NO. BG/GOV/SEC/2013/10, the use of some services of the Registry requires payment. The current modes of payment are the post-paid mode and the pre-paid mode, which require a deposit to be made at the Bank of Ghana.

    Source: laudbusiness.com BOG

  • Cash transactions drop due to lockdown BoG

    The Bank of Ghana (BoG) has noted that the use of electronic means of payment went up due to the partial lockdown of Accra and Greater Kumasi following the Coronavirus outbreak.

    The lockdown led to the decline in cash transactions, the central bank said.

    President Nana Addo Dankwa Akufo-Addo, as part of his measures to tackle the COVID-19 in Ghana placed restrictions on the movements of person in these areas in the country.

    At the Monetary Policy Committee (MPC) meeting in Accra on Friday May 15, the Governor of the BoG, Dr Ernest Addison, said the lockdown resulted in a decline in currency as consumers resorted to the use of electronic modes of payment.

    “General economic uncertainty reduced demand for credit, as commercial banks tightened their credit stance. As a result, credit to the private sector remained virtually flat during the period.

    “Broad money supply (M2+) slowed significantly to 13.5 percent in March 2020, compared with 21.6 percent growth a year ago,” e said.

    Regarding the viability of the banking sector of the local economy, he said : “The latest stress tests conducted in April 2020 suggest that banks are strong and resilient and are well-positioned to withstand mild to moderate liquidity and credit shocks on the basis of strong capital buffers and high liquidity positions.

    “Capital Adequacy Ratio is well above the revised regulatory floor of 11.5 percent. However, the industry NPL ratio has inched up during the quarter, reflecting the emerging impact of the pandemic on low credit growth and higher loan provisioning.

    “So far, banks are also responding positively to the recently-announced policy initiatives to support the economy by reducing lending rates and supporting credit growth, as well as offering moratoriums on loan repayments to cushion customers.”

    Source: laudbusiness.com