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Ghana’s central bank maintains rates as deflation slows

Published

7 months ago

May 28, 2024

For the second consecutive meeting, Ghana’s central bank kept its main interest rate at 29% on Monday, citing a slowdown in inflation caused by the local cedi’s drop.

The producer of cocoa, gold, and oil in West Africa has been restructuring its loans in an attempt to recover from the worst economic crisis in a generation. The company defaulted on the majority of its external borrowing in December 2022.

“The latest forecast shows a slightly elevated inflation profile on account of recent exchange rate pressures,” Bank of Ghana Governor Ernest Addison told a news conference, adding that inflation was expected to fall to between 13% and 17% by the end of 2024.

Although consumer inflation decreased somewhat from 25.8% in March to 25.0% year over year last month, it is still much above than the central bank’s 8% objective, with a 2 percentage point error margin.

Addison stated that while speculative foreign exchange purchases have weakened the cedi, the central bank still had sufficient reserves to stabilize the market. The University of Ghana’s Godfred Alufar Bokpin, a professor of finance, stated that with the cedi’s present risks and the upcoming general election later this year, there was little room to loosen monetary policy.

Ghana is presently examining before signing a draft memorandum of agreement that it received last week from its bilateral creditors, which include China and France, to restructure $5.4 billion in debt.

Once approved, the agreement will allow the executive board of the International Monetary Fund to convene the following month to authorize the payment of $360 million from the nation’s $3 billion bailout program, which Addison claimed removed a great deal of doubt.

“We are very happy and quite certain that the Fund meeting will happen in June,” Addison told Reuters on Monday.

Apart from the restructuring agreements with official creditors, Ghana is attempting to reach an agreement with holders of international bonds worth approximately $13 billion. Its local debt has mostly been adjusted.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

21 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”