Policy Incoherence: Why Inflation is Running Away from the Bank of Ghana’s Target
The Bank of Ghana (BoG) commenced its policy rate hike cycle in November 2021 well ahead of major central banks such as the US Federal Reserve. US inflation in recent months has peaked and started declining while inflation in Ghana shows no signs of sustained disinflation. The Ghana Statistical Service (GSS) in its December 2022 […]
Summary from the MPC Meeting
Effect of the Domestic Debt Exchange Program on Government Budget
Since the government of Ghana first announced that it was inviting eligible bond holders to exchange approximately GHS137.3 billion of domestic bonds for a package of new bonds on December 5th, the program deadline has been extended twice. The latest expiration date for the program is Tuesday 31st January 2023. In our previous article titled […]
The Bank of Ghana’s Forecasted Monetary Policy Rate for January 2023 is expected to lift the Policy Rate to its highest level in 21 years
Introduction The Bank of Ghana’s Monetary Policy Committee will hold its meeting from January 24th to 27th, with a press release due on January 30th. We anticipate the policy rate, which influences various financial indicators like lending rates, fixed income yields, stock market performance, and exchange rates, to rise by 300 basis points to 30%. […]
The Economics of the Gold for Oil Barter Policy
The minister of finance, Ken Ofori-Atta, presented to parliament the budget statement and economic policy of the government of Ghana for the 2023 financial year on 24th November 2022. This was immediately followed by an economic policy update on Facebook by the vice president, Dr. Mahamudu Bawumia, who is also the chair of the economic […]
The Illusion of No Haircuts: Ghana’s Proposed Domestic Debt Exchange Programme is Worse than a 100% Haircut on Principal
Introduction On Monday, 5th December 2022 the Republic of Ghana announced that it was inviting eligible bond holders to exchange approximately GHS137.3 billion of domestic bonds for a package of new bonds. The domestic debt exchange (DDE) programme is part of a more comprehensive agenda to restore debt sustainability. The government has made further amendments […]
2023 Tesah Budget Review
Budget 2023 – Fiscal Spending is not Restraining Enough and Revenue Target Remains Ambitious
The minister of finance, Ken Ofori-Atta, presented to parliament the budget statement and economic policy of the government of Ghana for the 2023 financial year on 24th November 2022. Given the challenges in the past year, we expected the 2023 budget statement to be prudent in public spending and conservative with revenue estimates. However, the […]
A Currency Board or Fixed Exchange Rate is Not a Solution to Ghana’s Depreciating Cedi
This is an academic article. The authors are solely responsible for the content of this publication. It does not reflect the views of Tesah Capital or any institution with which the authors are affiliated. We are grateful to Tesah Capital for providing a publication outlet. Introduction The Ghana cedi has depreciated markedly this year against […]
2023 Budget Must be Transparent and Have Realistic Targets
Ghana is currently experiencing one of the most challenging economic times in recent years. The difficulties confronting the country as it heads into the 2023 fiscal year include anemic economic growth, high unemployment, elevated inflation, severe currency depreciation, deteriorating gross international reserves and a looming public debt crisis. These put the finance minister in a […]
