<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>Bank of Ghana Archives - Sweet Melodies FM</title> <atom:link href="https://www.sweetmelodiesfm.com/tag/bank-of-ghana/feed/" rel="self" type="application/rss+xml" /> <link>https://www.sweetmelodiesfm.com/tag/bank-of-ghana/</link> <description>Keeping You Sanctified Morning, Noon and Night!</description> <lastBuildDate>Wed, 06 Nov 2024 10:11:37 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.7.2</generator> <image> <url>https://i0.wp.com/www.sweetmelodiesfm.com/wp-content/uploads/2022/07/cropped-Sweet-Melodies-FM_text_favicon.png?fit=32%2C32&ssl=1</url> <title>Bank of Ghana Archives - Sweet Melodies FM</title> <link>https://www.sweetmelodiesfm.com/tag/bank-of-ghana/</link> <width>32</width> <height>32</height> </image> <item> <title>IEA criticises Bank of Ghana’s Gold Coin initiative.</title> <link>https://www.sweetmelodiesfm.com/iea-criticises-bank-of-ghanas-gold-coin-initiative/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 06 Nov 2024 10:11:34 +0000</pubDate> <category><![CDATA[Money]]></category> <category><![CDATA[Bank of Ghana]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=94070</guid> <description><![CDATA[<p>The Institute of Economic Affairs (IEA) has voiced concerns over the Bank of Ghana’s recently launched Ghana Gold Coin (GGC) initiative, questioning its effectiveness in addressing Ghana’s deeper economic issues. The central bank announced the GGC on September 27 as part of its domestic gold programme, asserting that the gold coin would encourage savings, improve […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/iea-criticises-bank-of-ghanas-gold-coin-initiative/">IEA criticises Bank of Ghana’s Gold Coin initiative.</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[ <p class=""><strong>The Institute of Economic Affairs (IEA) has voiced concerns over the Bank of Ghana’s recently launched Ghana Gold Coin (GGC) initiative, questioning its effectiveness in addressing Ghana’s deeper economic issues.</strong></p> <p class="">The central bank announced the GGC on September 27 as part of its domestic gold programme, asserting that the gold coin would encourage savings, improve liquidity, and strengthen the cedi against foreign currencies, particularly the US dollar.</p> <p class="">In its latest bi-monthly report, however, the IEA argued that the GGC does not address the root causes of Ghana’s demand for foreign currency, suggesting that the gold coin initiative serves more as a temporary measure rather than a lasting solution. “Offering the GGC as an alternative asset to the dollar seems to be an admission of failure to deal with the real problems facing the economy, which drives Ghanaians to hold dollars instead of cedis,” the IEA remarked, adding that the underlying economic challenges lead Ghanaians to prefer foreign currencies over the cedi.</p> <p class="">The IEA further criticised the Bank of Ghana’s claim that the GGC initiative would help manage liquidity. It explained that the central bank buys gold from miners with cedis, mints the gold into GGCs, and then sells these coins back to the public in exchange for cedis. This, the IEA argues, results in no net liquidity withdrawal from the economy. “The GCCs sale eventually results in zero liquidity withdrawal from the economy on a net basis, contrary to the claim by BoG that it amounts to liquidity management,” the report states.</p> <p class="">The think tank urged the central bank to shift its focus to the structural reforms needed to address the cedi’s depreciation and the growing demand for the dollar. It suggested that addressing these fundamentals, rather than introducing alternative assets, would offer a more sustainable solution to the economic instability driving Ghana’s reliance on foreign currency.</p> <p class="">“The required measures should include the maintenance of fiscal and monetary discipline to reduce pressures on the cedi, reduction of inflation to close the gap with trading partners, and addressing the persistent FX demand-supply gap through appropriate structural reforms,” the IEA recommended.</p> <p class="">The IEA’s assessment casts doubt on the long-term viability of the GGC in resolving the dollar dependency issue, raising questions about whether the Bank of Ghana’s current strategy can effectively curb the country’s foreign currency reliance.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/iea-criticises-bank-of-ghanas-gold-coin-initiative/">IEA criticises Bank of Ghana’s Gold Coin initiative.</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Bank of Ghana Governor denies ever describing NDC Minority as hooligans </title> <link>https://www.sweetmelodiesfm.com/bank-of-ghana-governor-denies-ever-describing-ndc-minority-as-hooligans/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Tue, 09 Apr 2024 11:59:16 +0000</pubDate> <category><![CDATA[Business]]></category> <category><![CDATA[Economy]]></category> <category><![CDATA[Featured]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Business news]]></category> <category><![CDATA[Dr Ernest Addison]]></category> <category><![CDATA[National Democratic Congress]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=90068</guid> <description><![CDATA[<p>Dr Ernest Addison, Governor, Bank of Ghana, has denied an alleged report by an international media that he described the National Democratic Congress (NDC) Parliamentary Minority Caucus as hooligans during their #OccupyBoG protest march. The Minority held the #OccupyBoG protest march in Accra on October 5, 2023, to back their demand for the immediate resignation […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bank-of-ghana-governor-denies-ever-describing-ndc-minority-as-hooligans/">Bank of Ghana Governor denies ever describing NDC Minority as hooligans </a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[ <p class="">Dr Ernest Addison, Governor, Bank of Ghana, has denied an alleged report by an international media that he described the National Democratic Congress (NDC) Parliamentary Minority Caucus as hooligans during their #OccupyBoG protest march. </p> <p class="">The Minority held the #OccupyBoG protest march in Accra on October 5, 2023, to back their demand for the immediate resignation of the Governor and his two deputies for their mismanagement of the Central Bank. </p> <p class="">However, speaking at the Public Accounts Committee (PAC) of Parliament public hearing on Monday, Dr Addison said the use of the word “hooliganism” was an interpretation by the international media house and not an accurate representation of his words. </p> <p class="">“This is what I am coming to say that those who know me and know my character…you have not heard a single word of a recorded message with me describing Parliamentarians in that manner,” he stated. </p> <p class="">“This was a foreign journalist’s description of the conversation we had and I disowned it.” </p> <p>The post <a href="https://www.sweetmelodiesfm.com/bank-of-ghana-governor-denies-ever-describing-ndc-minority-as-hooligans/">Bank of Ghana Governor denies ever describing NDC Minority as hooligans </a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>BoG revokes licences of two forex bureaus in Accra</title> <link>https://www.sweetmelodiesfm.com/bog-revokes-licences-of-two-forex-bureaus-in-accra/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Sat, 29 Oct 2022 08:14:21 +0000</pubDate> <category><![CDATA[Economy]]></category> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[News]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=80377</guid> <description><![CDATA[<p>The Bank of Ghana has revoked the licences of two forex bureaus operating in Accra for several breaches of the Forex Bureau Act. The two companies – Trade House Forex Bureau Ltd. and Airport City Forex Bureau Ltd. – are under the same ownership, according to the Head of Other Financial Institutions Supervision Department at […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bog-revokes-licences-of-two-forex-bureaus-in-accra/">BoG revokes licences of two forex bureaus in Accra</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>The Bank of Ghana has revoked the licences of two forex bureaus operating in Accra for several breaches of the Forex Bureau Act.</strong></p> <p>The two companies – Trade House Forex Bureau Ltd. and Airport City Forex Bureau Ltd. – are under the same ownership, according to the Head of Other Financial Institutions Supervision Department at the Bank of Ghana, Yaw Sapong; and they are not complying with some provisions under the law within which they operate.</p> <p>Mr. Sapong mentioned that the two forex bureaus which operate at Airport City in Accra were not issuing electronic receipts, and not taking identity cards of customers.</p> <p>“There are several rules under the Act. We know that you have to issue electronic receipts, you have to take IDs; and these two forex bureaus on several occasions have been found not to be complying. And the way they operate and set their prices is detrimental, so we think the two bureaus’ licences must be revoked,” he said in an interview with media during the clampdown exercise.</p> <p>Asked whether the two forex bureaus can have their licences back after correcting their mistake, Mr. Sapong said that may be difficult as the company’s directors and owners, per their actions, have proven themselves not to be fit and proper to qualify for operating in the forex space.</p> <p>He further cautioned that the regulator will not relent in its efforts to carry out any action that will help address the cedi’s rapid depreciation.</p> <p>“We are confronting the issues from all angles. There are licenced forex bureaus which are not operating according to the law. So, for licenced institutions which are not complying with the rules, the Bank of Ghana will deal with them. In addition, we are going after the black market as well; and as you are aware, we recently did a swoop and several more have been planned.</p> <p>“So, I want to use this opportunity to sound a warning to those who are engaged in illegal forex business. It is an offence to buy or sell foreign currency in this country without a licence,” he said.</p> <p>Asked whether this is just a panic-reaction in response to the cedi’s rapid depreciation against the dollar – which hit more than 50 percent this week, Mr. Sapong answered in the contrary: saying the regulator cannot watch on for the black market to set the rules in the forex industry. “We cannot allow the black market operators to set the value of currency in this country. And that is why we are fighting them really hard,” he said.</p> <p><strong>The position of the law</strong></p> <p>Section 3. (1) of the Foreign Exchange Act, 2006 (Act 723) states that: “A person shall not engage in the business of dealing in foreign exchange without a licence”. And Section 29 (1a) says: “A person who engages in the business of dealing in foreign exchange without a licence commits an offence, and is liable on summary conviction to a fine of not more than seven hundred penalty units or a term of imprisonment of not more than eighteen months, or both”.</p> <p>Also, Section 1 (i & ii) of the Revised Forex Bureau Regulations, 2003 (BoG NOTICE NO. BG/GOV/SEC/2003/2) states that: “No person shall carry on any forex bureau business unless he/she is in possession of a valid forex bureau licence. A person who contravenes or fails to comply shall be guilty of an offence, and shall be dealt with in accordance with the law”.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bog-revokes-licences-of-two-forex-bureaus-in-accra/">BoG revokes licences of two forex bureaus in Accra</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Too early to scrap E-levy – Addison</title> <link>https://www.sweetmelodiesfm.com/too-early-to-scrap-e-levy-addison/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 27 Jul 2022 11:34:34 +0000</pubDate> <category><![CDATA[Economy]]></category> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Dr. Ernest Addison]]></category> <category><![CDATA[e-levy]]></category> <category><![CDATA[News]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=79004</guid> <description><![CDATA[<p>Governor of the Bank of Ghana, Dr. Ernest Addison, has said it is not yet time to scrap the electronic payment levy (E-levy) despite the disruption it has created in the financial inclusion agenda. Data published by the central bank show strong disaffection for the tax from the people as the mobile money platform registered […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/too-early-to-scrap-e-levy-addison/">Too early to scrap E-levy – Addison</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p>Governor of the Bank of Ghana, Dr. Ernest Addison, has said it is not yet time to scrap the electronic payment levy (E-levy) despite the disruption it has created in the financial inclusion agenda.</p> <p>Data published by the central bank show strong disaffection for the tax from the people as the mobile money platform registered a GH¢16.3billion loss in value in May – the very month the tax was introduced – from the GH¢87.7billion recorded in April.</p> <div class="td-a-rec td-a-rec-id-content_inlineleft tdi_2 td_block_template_11"> <div class="td-visible-desktop"><ins id="revive-0-0" data-revive-zoneid="2" data-revive-id="6f712528d674d4a407d89e7aa79c435d" data-revive-seq="0" data-revive-loaded="1"></p> <div id="beacon_7f83cf3abd"><img decoding="async" class="td-animation-stack-type0-2" src="https://ads.thebftonline.com/www/delivery/lg.php?bannerid=2&campaignid=2&zoneid=2&loc=https%3A%2F%2Fthebftonline.com%2F2022%2F07%2F27%2Ftoo-early-to-scrap-e-levy-addison%2F&referer=https%3A%2F%2Fthebftonline.com%2F&cb=7f83cf3abd" alt="" width="0" height="0" /></div> <p></ins></div> </div> <p>Then, in June, the value of transactions hit GH¢77.4billion, indicating a GH¢10.3billion drop from what was recorded in April, albeit higher than the GH¢71.4billion registered in May.</p> <p>In terms of the number of transactions, mobile money experienced another setback as activity on the platform has declined by 25 million since April – from 403 million to 378 million in June. Furthermore, the balance on float, thus, the amount on people’s wallet on the payment platform, has also declined to GH¢9.3billion, shaving off GH¢300million since April.</p> <p>These massive disruptions, largely stemming from customers’ discontinuous or reduced use of the platform, have never been experienced since the introduction of the payment system in the country, hence, prompting calls for the tax to be scrapped, especially when the Finance Ministry has come out to admit that the tax has only yielded less than 10 percent of its expected revenue.</p> <p>However, Governor of the Bank of Ghana, Dr. Addison, still feels it is too early to abolish the tax, saying, that certain exemptions granted by the E-levy tax law could be responsible for the low revenue recouped from the levy so far, hence, given time, it will perform better.</p> <p>“I don’t think it is time to scrap E-levy. Discussions that I have been privy to has been on the level of exemptions granted under the E-levy law. So, I know there is some work which is currently on-going to relook at those exemptions; and hopefully, when that is completed, the levy will bring in more resources than currently,” he told journalists on Monday, during a press conference to announce the policy rate.</p> <p><strong>The IMANI survey</strong></p> <p>A survey conducted by IMANI Centre for Policy and Education, in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), revealed that about 83 percent or eight in 10 respondents indicated that their volume of transactions has changed since the implementation of the E-levy in May 2022.</p> <p>The research, which interviewed 1,677 respondents across the country, was aimed at determining the impact of the E-levy on Ghanaians and the coping mechanisms Ghanaians had adopted since its passage in May this year.</p> <p>Of this number, about 47 percent indicated that they had reduced the number of mobile money transactions by about 51 percent to 100 percent. “Our findings suggest that the official 24 percent attrition rate, which government estimates for the first three to six months following the introduction of the e-levy, is likely to be much higher. This findings imply that the forecasted GH¢4.5billion E-levy revenue target for 2022 is unlikely to be attained, given the strong consumer backlash, and people finding alternative means of undertaking financial transactions,” the survey said.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/too-early-to-scrap-e-levy-addison/">Too early to scrap E-levy – Addison</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Bank of Ghana denies printing GHC22.04 billion</title> <link>https://www.sweetmelodiesfm.com/bank-of-ghana-denies-printing-ghc22-04-billion/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 27 Jul 2022 10:23:57 +0000</pubDate> <category><![CDATA[Economy]]></category> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[News]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=78987</guid> <description><![CDATA[<p>The Bank of Ghana (BOG) has denied printing GHC 22.04 billion, saying the amount represents net claims on Government, and not new currency printed to support the Government’s budget. In a statement in reaction to allegations by the Minority Ranking Member on the Finance Committee in Parliament that BOG had printed an amount of GHC […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bank-of-ghana-denies-printing-ghc22-04-billion/">Bank of Ghana denies printing GHC22.04 billion</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p>The Bank of Ghana (BOG) has denied printing GHC 22.04 billion, saying the amount represents net claims on Government, and not new currency printed to support the Government’s budget.</p> <p>In a statement in reaction to allegations by the Minority Ranking Member on the Finance Committee in Parliament that BOG had printed an amount of GHC 22.04 billion to finance the Government’s budget without parliamentary approval.</p> <p>According to the Bank, the net claims have a component of GoG Stocks and bonds sold by commercial banks under repurchase agreements; IMF SDR allocation disbursed to Government through the Bank of Ghana; Draw-down of the Government’s own deposits and negative balance on the Government’s account with Bank of Ghana at a point in time.</p> <p>In a statement issued by the Central Bank, it explained that bonds, held by a commercial bank since 2021 were purchased by BoG to provide liquidity to the bank, under a repurchase agreement that required the bank to buy back these bonds at a later date.</p> <p>“Having purchased these bonds on the secondary market as a secondary transaction, Bank of Ghana’s holdings of GoG bonds increased by GHC 1.6 billion, not because it had lent money to Government, but because it had purchased a GoG bond originally purchased by the bank for investment purposes” it stated.</p> <p>It noted that it routinely entered into similar agreements (Repos and Reverse Repos) with commercial banks that hold Government bonds and require liquidity to meet short-term obligations.</p> <p>On the issue of IMF SDR resources to Government, BoG noted that, GHC6.2 reflected on-lending of IMF SDR resources to Government, in line with the overall objective of the special SDR operation by the IMF.</p> <p>It added that “however, in this particular instance, the special SDR allocation by the IMF was designed to provide budget support to countries to help address issues related to the Covid-19 pandemic. Last year, Bank of Ghana received additional SDR allocation of SDR 707.3 million (US$1.001 billion)”</p> <p>It noted that IMF resources were usually meant for Balance of Payments support, which goes directly to the central banks.</p> <p>Read also:</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/bank-of-ghana-writes-off-gh%c2%a23-1bn-in-loans-because-of-new-accounting-rule/">Bank of Ghana writes off GH¢3.1bn in loans because of new accounting rule</a></li> <li><a href="https://www.sweetmelodiesfm.com/bank-of-ghana-abolishes-unfair-fees-and-charges/">Bank of Ghana abolishes unfair fees and charges</a></li> <li><a href="https://www.sweetmelodiesfm.com/uk-watchdog-penalties-a-lack-of-effective-anti-money-laundering-measures-by-ghana-international-bank/">UK watchdog penalties a lack of effective anti-money laundering measures by Ghana International Bank</a></li> <li><a href="https://www.sweetmelodiesfm.com/ghana-receives-gh%c2%a242m-from-world-bank-to-pay-leap-arrears-to-beneficiaries/">Ghana receives GH¢42M from World Bank to pay LEAP arrears to beneficiaries</a></li> <li><a href="https://www.sweetmelodiesfm.com/ex-governor-of-nigerias-central-bank-impressed-by-ghanas-digitalisation-drive/">Ex-Governor of Nigeria’s Central Bank impressed by Ghana’s digitalisation drive</a></li> </ul> <p>The Bank further disclosed that, an amount of GHC 2.85 billion reflected a drawdown on Government’s own deposits held with the Bank of Ghana.</p> <p>These, it explained, included statutory funds such as the GET FUND, National Health insurance, District Assembly Common Fund and the Sinking Fund.</p> <p>Also, included are donor-related funds as well as the Ministries, Departments and Agencies (MDAs) operational accounts with Bank of Ghana. BoG also indicated that a residual amount of GHC 11.4 billion included in the GHC 22.04 billion, represented an overdrawn balance on the Government’s treasury main account held with Bank of Ghana as of the reporting date.</p> <p>It said that overdrafts of this nature occurred from time to time, as the auction system had been designed to ensure same day settlement of maturities and interest payments, once the auction is concluded.</p> <p>“This guarantee of same-day settlement of maturities and interest payments, which has always been part of the auction system, has underpinned the development of the local currency bond market.</p> <p>“With such a guarantee, on occasions when there have been uncovered auctions, maturities are automatically settled and then a reconciliation is done with Government. Incoming Government cash deposits are then used automatically to liquidate such overdrawn balances on a rolling and continuous basis” the central bank explained.</p> <p>It said that the current gap of GHC11.4 billion reflected the net amount of the gap at the end of June 2022.</p> <p>This balance is cleared regularly. Any outstanding balance has to be cleared by the end of the year.</p> <p>“Bank of Ghana would like to assure the public that in carrying out its functions as banker to Government, it is committed to complying fully with all relevant legal requirements,” the statement added.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bank-of-ghana-denies-printing-ghc22-04-billion/">Bank of Ghana denies printing GHC22.04 billion</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Ghana’s economy is in dire straits, and it’s saddening — Kwesi Botchwey</title> <link>https://www.sweetmelodiesfm.com/ghanas-economy-is-in-dire-straits-and-its-saddening-kwesi-botchwey/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 15 Jun 2022 16:25:47 +0000</pubDate> <category><![CDATA[Economy]]></category> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Ghana]]></category> <category><![CDATA[Prof. Kwesi Botchwey]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=78001</guid> <description><![CDATA[<p>A former Minister of Finance and Economic Planning under the late President Rawlings’ tenure, Prof. Kwesi Botchwey says Ghana’s economy is taking a nose dive following the high debts accrued in recent times. The Bank of Ghana reports that the country’s public debt has increased to GH¢344.5 billion, which is 78.4 percent of GDP at […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/ghanas-economy-is-in-dire-straits-and-its-saddening-kwesi-botchwey/">Ghana’s economy is in dire straits, and it’s saddening — Kwesi Botchwey</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>A former Minister of Finance and Economic Planning under the late President Rawlings’ tenure, Prof. Kwesi Botchwey says Ghana’s economy is taking a nose dive following the high debts accrued in recent times.</strong></p> <p>The Bank of Ghana reports that the country’s public debt has increased to GH¢344.5 billion, which is 78.4 percent of GDP at the end of November 2021, compared to GH¢291.6 billion, or 76.0 percent of GDP at the end of December 2020.</p> <p>Prof. Kwesi Botchwey was speaking at the launch of the collective Biography of the Ahwoi and Adu-Gyamfi siblings titled ‘The Children of House No. D13, South Suntreso Kumasi.’</p> <p>The collective biography provides excerpts of memorable events in the lives of the seven personalities in the spheres of politics, business, family and religion.</p> <p>“Sadly, we don’t appear to have learnt our lessons. Now moving so perilously close to the edge of the presidency, where we were in the early 80s; with our economy saddled with debts which we cannot even pay to meet our social obligations”.</p> <p>This is not the first time Prof. Kwesi Botchwey has complained about the economic challenges facing the country.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/we-will-not-have-an-economy-unless-we-digitize-bawumia/">We will not have an economy unless we digitize – Bawumia</a></li> <li><a href="https://www.sweetmelodiesfm.com/bawumia-will-speak-on-the-economy-today-at-the-tescon-event/">Bawumia will speak on the economy today at the TESCON event</a></li> </ul> <p>At his recent 65th Independence Day Lecture, he said, the difficulties could be overcome if the government becomes honest with Ghanaians.</p> <p>“Our current travails can be overcome provided we level with the people. The solution to a problem begins with recognising that there is one. It must start with the recognition that, it is a crisis and level with the people. We must wind down the hubris, the arrogance, and the show of impunity that the people see.”</p> <p>The lecture was on the theme: “On the state of the nation’s economy and politics, 65 years after independence, the path to sustainable development and democratic consolidation.”</p> <p>He added that two areas that affect the economic policy choices being made are continuity in economic planning and democratic consolidation.</p> <p>These, he suggests, should be looked at as solutions are sorted for <a href="https://citinewsroom.com/2022/03/stop-the-arrogance-be-honest-with-ghanaians-on-economic-woes-kwesi-botchwey-to-govt/"><strong>bettering the current crisis</strong> </a>in the economy.</p> <p>Ghana is currently battling with huge public debt levels and challenges in revenue generation.</p> <p>Major financial rating companies like Moody’s and Fitch have all downgraded Ghana’s credit rating.</p> <p>Moody’s, for instance, said the new rating of the country’s economy reflects the woes Ghana is facing in fixing its liquidity and debt challenges.</p> <p>Although major watchers of the economic space had advised government to seek an International Monetary Fund bailout, the government is adamant.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/ghanas-economy-is-in-dire-straits-and-its-saddening-kwesi-botchwey/">Ghana’s economy is in dire straits, and it’s saddening — Kwesi Botchwey</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>‘Gov’t must be fiscally prudent in order to address rising inflation’ — Economist</title> <link>https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Tue, 14 Jun 2022 11:38:37 +0000</pubDate> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Dr. Adu Sarkodie]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=77885</guid> <description><![CDATA[<p>An Economist, Dr. Adu Sarkodie thinks the Bank of Ghana’s measures at fighting inflation may be counter-productive without multisectoral support from some key governmental ministries. He argued that Ghana’s record-high inflation of 27.6%, which is primarily supply-driven, requires key Ministries – Trade, Finance, and Agriculture to institute policies that will reduce public debt and borrowing. […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/">‘Gov’t must be fiscally prudent in order to address rising inflation’ — Economist</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>An Economist, Dr. Adu Sarkodie thinks the Bank of Ghana’s measures at fighting inflation may be counter-productive without multisectoral support from some key governmental ministries.</strong></p> <p>He argued that Ghana’s record-high inflation of 27.6%, which is primarily supply-driven, requires key Ministries – Trade, Finance, and Agriculture to institute policies that will reduce public debt and borrowing.</p> <p>Dr. Sarkodie believes these policies will enhance fiscal discipline on the part of various Ministries, which will consequently tackle inflation.</p> <p>“The fight against inflation has not been effective because it is a supply-side issue, so the Bank of Ghana is doing its part. The onus lies on the supply side, the fiscal side, and the real actors like the Ministry of Finance to be fiscally disciplined.”</p> <p>“The Agricultural Ministry must answer some questions, Trade and Industry must answer some questions. All the other actors must be part of this solution, not only the Central Bank,” he argued on Citi TV’s Point of View.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/bank-of-ghana-abolishes-unfair-fees-and-charges/">Bank of Ghana abolishes unfair fees and charges</a></li> <li><a href="https://www.sweetmelodiesfm.com/inflation-rises-again-hits-27-6-in-may-2022/">Inflation rises again; hits 27.6% in May 2022</a></li> </ul> <p>In May 2022, the Bank of Ghana increased interest rates from 17% to 19% in a bid to address inflation.</p> <p>But economists have warned that the continual rise in interest rates may worsen the country’s economic challenges.</p> <p>Mr. Sarkodie rehashed these concerns, emphasising the need for Ghana to adopt “a better approach where we will all not lose.”</p> <p>The Government Statistician, Prof. Samuel Kobina Annim has already said the current rising inflation in the country has more to do with the country’s fiscal policies rather than monetary policy.</p> <p>According to him, confirmed data collected by the Ghana Statistical Service points to the fact that the rising cost of goods can only be tackled through policy decisions taken by the government on the supply side of things.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/">‘Gov’t must be fiscally prudent in order to address rising inflation’ — Economist</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>BoG’s monetary policy rate hike will create new challenges – Joe Jackson</title> <link>https://www.sweetmelodiesfm.com/bogs-monetary-policy-rate-hike-will-create-new-challenges-joe-jackson/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Thu, 26 May 2022 10:48:27 +0000</pubDate> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Joe Jackson]]></category> <category><![CDATA[monetary policy rate]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=77173</guid> <description><![CDATA[<p>Economic analysts are concerned about the Bank of Ghana’s recent decision to raise the monetary policy rate from 17 percent to 19 percent. According to them, while the measure may appear helpful in a way of addressing the rise in inflation in the country, it will lead to more complications in the economy. Speaking on […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bogs-monetary-policy-rate-hike-will-create-new-challenges-joe-jackson/">BoG’s monetary policy rate hike will create new challenges – Joe Jackson</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>Economic analysts are concerned about the Bank of Ghana’s recent decision to raise the monetary policy rate from 17 percent to 19 percent.</strong></p> <p>According to them, while the measure may appear helpful in a way of addressing the rise in inflation in the country, it will lead to more complications in the economy.</p> <p>Speaking on Citi TV’s The Point of View, the Director of Strategy and Business Operations at Dalex Finance, Joe Jackson said the move will limit borrowing, leading to a slowdown in the economy.</p> <p>He added that the development will also lead to high expenditure on debt servicing as government will only be the main borrower, borrowing at a high interest rate.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/inflation-tempo-pushes-bog-to-19-policy-rate-hike/">Inflation tempo pushes BoG to 19% policy rate hike</a></li> <li><a href="https://www.sweetmelodiesfm.com/bog-raises-its-policy-rate-to-17/">BoG raises its policy rate to 17%</a></li> </ul> <p>“Increasing the rate does two critical things for us, first it means that people won’t borrow and the economy will slow down. This slowdown in the economy will hit all of us. The Bank of Ghana governor said the banks don’t lend to the private sector anyway so it is not a big deal but the government still borrows from banks so as the rate has gone up, the government will pay more to the banks in debt servicing. We are between the rock and a very hard place.”</p> <p>He said the government’s current economic woes are being exacerbated by issues such as the economic downgrade by the rating agencies, the high cost of fertilizer on the international market, the COVID-19 pandemic and the ongoing Russia-Ukraine war.</p> <p>“The real inflation that is hitting us is the cost of food. If you can address it, things will come down a bit. If I were the president, I will scrap tax on imported food,” he advised, to help alleviate the suffering Ghanaians are going through.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bogs-monetary-policy-rate-hike-will-create-new-challenges-joe-jackson/">BoG’s monetary policy rate hike will create new challenges – Joe Jackson</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Bank of Ghana abolishes unfair fees and charges</title> <link>https://www.sweetmelodiesfm.com/bank-of-ghana-abolishes-unfair-fees-and-charges/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 11 May 2022 15:53:47 +0000</pubDate> <category><![CDATA[Economy]]></category> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Banking and Finance]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[GHANA NEWS]]></category> <category><![CDATA[News]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=76837</guid> <description><![CDATA[<p>The Bank of Ghana has abolished some unfair fees and charges among other practices in the banking sector, in an effort to protect the public. In a notice, the central bank highlighted that maintenance fees on savings accounts charged by financial institutions are prohibited. Read Also : Dr Ishmael Evans Yamson: Chairman across the board and […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bank-of-ghana-abolishes-unfair-fees-and-charges/">Bank of Ghana abolishes unfair fees and charges</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p>The Bank of Ghana has abolished some unfair fees and charges among other practices in the banking sector, in an effort to protect the public.</p> <div class="td-a-rec td-a-rec-id-content_inlineleft tdi_2 td_block_template_11"> <div class="td-visible-desktop"><ins id="revive-0-0" data-revive-zoneid="70" data-revive-id="fbc36380facbe70552e82914b008915c" data-revive-seq="0" data-revive-loaded="1"></p> <div id="beacon_6b11c9a370"><img decoding="async" src="https://adserver.thebftonline.com/www/delivery/lg.php?bannerid=0&campaignid=0&zoneid=70&loc=https%3A%2F%2Fthebftonline.com%2F2022%2F05%2F11%2Fbog-abolishes-unfair-fees-and-charges%2F&referer=https%3A%2F%2Fthebftonline.com%2F&cb=6b11c9a370" alt="" width="0" height="0" /></div> <p></ins></div> </div> <p>In a notice, the central bank highlighted that maintenance fees on savings accounts charged by financial institutions are prohibited.</p> <p>Read Also : <a href="https://www.sweetmelodiesfm.com/dr-ishmael-evans-yamson-chairman-across-the-board-and-gods-gift-to-africas-private-sector/">Dr Ishmael Evans Yamson: Chairman across the board and God’s gift to Africa’s private sector</a></p> <p>“Always look out for debits on your account and report any suspicious or unapproved charges/debits to your financial institution,” – BoG says.</p> <p>However, the bank emphasized that customers must be aware that additional services such as transaction alert, Internet banking, among others, being provided by financial institutions may attract fees and charges on their account – adding, however, that customers should always assess their needs before subscribing to such services.</p> <p>Per the notice, financial institutions are not allowed to charge any penal charge when customers walk into the banking hall to withdraw funds from their own account over the counter.</p> <p>Read Also: <a href="https://www.sweetmelodiesfm.com/employment-and-labour-minister-nxesi-formally-launches-south-africas-hosting-of-a-global-conference-to-discuss-urgent-interventions-to-tackle-child-labour/">Employment and Labour Minister Nxesi Formally Launches South Africa’s Hosting of a Global Conference to Discuss Urgent Interventions to Tackle Child Labour</a></p> <p>Thus, the Bank said, customers must always insist on their rights and report any breach to it.</p> <p>“Your request for your account balance from the banking hall of your financial institution should not attract any fee or penalty,” the BoG said.</p> <p>In the case of handling collateral assets, the Bank said it is unlawful for a financial institution to effect a change in the legal title of your asset (vehicle, landed property and others) used as collateral into the joint names of the financial institution and customer, or into the name of the financial institution or any third party.</p> <p>“Always demand the Annualised Percentage Rate (APR) on your loan from your financial institution prior to acceptance of the loan facility. It will help you know how much the loan will cost you after the duration of the loan. It is a legal requirement for your financial institution to provide you with this information before you sign your loan contract,” the bank advised.</p> <p>Read Also : <a href="https://www.sweetmelodiesfm.com/boomplay-receives-globally-recognized-iab-open-measurement-sdk-integration-certification/">Boomplay Receives Globally Recognized IAB Open Measurement SDK Integration Certification</a></p> <p>“It is unlawful for a financial institution to quote its interest rate on a monthly, daily or other basis apart from annual.</p> <p>“If you do not pay your loan on time, you may be subject to paying penal charges. You shall, however, pay any penal charge only on the amount you delayed in paying and not on the total outstanding loan amount. Late payment of a loan installment could affect your credit risk profile, as it is required to be reported to a credit bureau licenced by the Bank of Ghana,” the statement said.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bank-of-ghana-abolishes-unfair-fees-and-charges/">Bank of Ghana abolishes unfair fees and charges</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>BoG raises its policy rate to 17%</title> <link>https://www.sweetmelodiesfm.com/bog-raises-its-policy-rate-to-17/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Tue, 22 Mar 2022 09:42:25 +0000</pubDate> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Monetary Policy Committee (MPC)]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=75160</guid> <description><![CDATA[<p>The Monetary Policy Committee (MPC) of the Bank of Ghana has – for the first time in recent history – hiked the policy rate by 250 basis points, saying current economic conditions which include fiscal pressures, inflation, and exchange rate volatility, among others, leave no room for deciding otherwise. At the 105th meeting of the […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bog-raises-its-policy-rate-to-17/">BoG raises its policy rate to 17%</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>The Monetary Policy Committee (MPC) of the Bank of Ghana has – for the first time in recent history – hiked the policy rate by 250 basis points, saying current economic conditions which include fiscal pressures, inflation, and exchange rate volatility, among others, leave no room for deciding otherwise.</strong></p> <p>At the 105<sup>th</sup> meeting of the MPC, it decided to increase the policy rate to 17 percent from 14.5 percent, given inflation has shot through the upper-band target ceiling of 10 percent to 15.7 percent in February, and is expected to continue inching up due to rising fuel prices.</p> <p>The local currency has of mid-March depreciated by 17 percent to the dollar, further contributing to the hike in the price of goods and services on the market due to the country’s heavy reliance on imports of goods and raw materials for local production.</p> <p>Total public debt has also hit 80.1 percent of GDP, recording GH¢351.8billion as at the end of last year, an increase by GH¢60.2billion from the same period in 2020. These and other factors combined, the MPC said, left it with no option than to hike the policy rate to 17 percent; the first time since November 2018 when it was increased to such a level.</p> <p>The rate, however, does not come as a surprise to the market at all, as various market watchers had prior to the meeting forecasted an increase of the rate by at most 200 basis points, given pressures in the economy.</p> <p>“Headline inflation has risen sharply to 15.7 percent in February 2022, and both headline and core inflation are significantly above the upper limit of medium-term target band. The uncertainty surrounding price developments and its impact on economic activity is weighing down business and consumer confidence. The risks in outlook for inflation are on the upside and include petroleum price adjustments and transportation costs, and exchange rate depreciation.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/bog-maintains-inflation-stance/">BoG maintains inflation stance</a></li> <li><a href="https://www.sweetmelodiesfm.com/bog-raises-policy-rate-to-14-5-percent/">BoG raises policy rate to 14.5 percent</a></li> </ul> <p>The Bank’s latest forecast still depicts an elevated inflation profile in the near-term, with inflation falling within the medium-term target band within a year. Fiscal policy implementation has come under strain, reflecting embedded rigidities in the fiscal framework which will require extensive structural reforms to free fiscal space to restore both fiscal and debt sustainability,” the MPC statement said.</p> <p>It further stated that: “Revenue performance has been slow to align with projections, while expenditure remains rigidly downward, despite the strong efforts to cut expenditure by 20 percent as announced by government. The above have resulted in financing constraints which will have to be resolved very swiftly to ensure the announced fiscal consolidation path is achieved.</p> <p>“The MPC is however confident that ongoing discussions will lead to very decisive policy reforms which will address underlying fiscal mismatches and restore some calm in the markets. This, together with the monetary policy decision and additional measures, should help re-anchor inflation expectations. Under these circumstances, the Committee has decided to increase the policy rate by 250 basis points to 17 percent.”</p> <p><strong><b>Other measures taken</b></strong></p> <p>Besides hiking the rate to contain inflation, the Committee added that, with effect from April 2022, the central bank will enforce some measures in relation to universal banks. These include increasing the Cash Reserve Ratio to 12 percent; resetting the Capital Conservation Buffer to the pre-pandemic level of 3 percent, thereby taking the Capital Adequacy Ratio to 13 percent; and also resetting the provisioning rate for loans in the Other Loans Exceptionally Mentioned (OLEM) category to 10 percent.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/bog-raises-its-policy-rate-to-17/">BoG raises its policy rate to 17%</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> </channel> </rss>