Skip to main content

BoG review developments in the economy



By: Fred Yaw Sarpong
 
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has started reviewing the developments in the economy, and will announce to the general public tomorrow Wednesday 2 April, 2014 the results.
The 60th regular meetings of MPC, led by the Governor, Dr. Kofi Wampah will also end with a decision on the appropriate positioning of the Bank’s Policy Rate.
The policy rate is the rate at which the central bank does overnight lending to universal banks in the country. Both the universal banks set their respective base lending rates to their customers based on the BoG policy rate.
Bank of Ghana will also inform the public the state of the measures put in place some few months ago by the central bank to address the difficulties in the economy, especially the state of the Ghana Cedi against the major currencies like the Dollar and the Pounce.
The committee will certainly give detail of the performance of the economy and this will include the country’s fiscal deficit, whether good or bad; inflationary trend based on the central bank’s statistics and as well as our Ghana’s import and export.
As part of the measures put in place by the central bank, the government directed all Ministries Departments and Agencies (MDAs) in the country not sign any contract in foreign currencies, especially quoting the US Dollar.
Also, the regulator of the banking industry was having discussion with Visa and Mastercard in order to allow the cards to handle Ghana Cedi.
Bank of Ghana made the public understood that, it had gone a long way with the discussion and hoping that something better would emanate from the discussion.
The bank’s measures were to ensure that Visa and Mastercard settle in this country.
The explanation was that the banks who provide services in Visa and Mastercard would have to settled in local or domestic currency, using the GH Link put in place by the central bank. The banks mention includes GCB, GT Bank, Zenith, Ecobank and among others.
One of the US Dollar operating areas, which the central bank considered as a critical area to stabilize the Cedi depreciation was the dollar black market operations scattered around the country.
The central bank believes that in order to control the continue depreciation of the Ghana’s cedi, the circulation and transaction of businesses in the dollar currency have to be control also.
The bank said identifying the black market is one of the few measures to limit access to trading in foreign currency (the dollar), and rather make the cedi more acceptable in all transaction businesses than the US Dollar.
This it said would help control transaction of businesses in US Dollar in order to curb the falling standard of the cedi.
These are some of the few measures put in place by the bank and it’s expected to inform Ghanaians the outcome of these measures.





Comments

Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong sarpong007@gmaail.com
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

Ghana to benefit from oil spill fund

By: Fred Yaw Sarpong

Ghana as crude oil importing country will benefit from the International Oil Pollution Corporation Fund if the country witnesses oil spill at its ocean.

“The fund is a global fund and it’s meant for the countries that import crude oil. The fund is voluntary but Ghana through the Tema Oil Refinery (TOR) contributes annually on behalf of Ghana,” Mr. Kojo Agbenor Efunam, the Deputy Director in charge of oil and gas at the Environmental Protection Agency (EPA) told the Daily Express.

He explained that the fund is mostly for crude oil importing countries but not those into production and exportation.

Mr. Efunam further explained that once Ghana is part of the fund, anytime there is an oil spill involving an oil tanker on the seas of Ghana, the country can apply for the fund to solve any problem resulting from the spillage.

“If the incident does not involve a tanker the country does not benefit. But if the incident involves a tanker the country applies for the fund,” he ment…

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…