Monetary Policy Update: Bank of Ghana increases policy rate to 14.5% in response to elevated inflationary risks
The monetary policy committee (MPC) of the Bank of Ghana (BoG) on November 22,2021 decided to increase the policy rate by 100 basis points to 14.5%. The decision at the just ended 103rd MPC meeting is the first monetary policy rate (MPR) increase since November 2015. In the MPC press release, they attributed the decision […]
Ghana’s sovereign credit ratings: should investors be concerned?
While investors especially foreigners may find it economically viable to invest in developing countries, credit quality reports that evaluate the creditworthiness of a country are considered essential for investment decisions and cannot be ignored. Ghana has maintained its sovereign credit ratings for the past three (3) years (2017-2019). The Sovereign Credit Rating (SCR) assigned to […]
What type of investor are you?
It is important to define and implement an investment strategy that is unique to your personal profile. Investor profile measures two key factors: Time Horizon, and Risk Tolerance Level. Knowing the type of investor you are is based on the key factors listed above, and, helps you to determine how you might allocate your money […]
Ghana’s 2021 budget highlights
On March 12, 2021 Hon. Osei Kyei Mensah-Bonsu Minister For Parliamentary Affairs, Majority Leader & Leader Of Government Business on the authority of His Excellency Nana Addo Dankwa Akufo-Addo, president of the Republic of Ghana presented the budget statement and economic policy for the 2021 financial year. The budget focused on economic revitalization through completion, […]
Financial Markets, Financial Institutions and Investments (Part III)
Introduction We continue on our earlier discussions on financial institutions and investments. In this article, we look at collective investment schemes as ways of investing in financial instruments in the equity and debt markets. Collective investment schemes Collective investment schemes are pools of funds that are managed on behalf of investors by a professional money […]
Asset Allocation: What is It and Why is it Important?
Introduction Asset allocation refers to the proportions of funds that an investor invests in various asset classes (such as cash, bonds and stocks), sectors and countries. An investor’s portfolio should also allocate investments to various sectors such as energy, financials, ICT, healthcare, communication services, industrials, utilities, real estate etc. It is important to diversify (invest […]
Financial Markets, Financial Institutions and Investments (Part II)
Introduction Following from our earlier discussions in part I which centred on financial markets, financial institutions and investments, where we examined the nature of financial markets, money and stylised data on mobile money in Ghana, we proceed in Part II to look at financial instruments and financial institutions which are important players in the financial […]
Asset Allocation: Factors that Affect Asset Allocation
Introduction In our previous article, we explained what asset allocation was and why it is important. We learnt that asset allocation represents how an investor distributes their wealth across various asset classes, sectors and countries. We also learnt that asset allocation is a key factor that influences the risk and return on a portfolio. In […]
Financial Markets, Financial Institutions and Investments (Part I)
Introduction In this article and the couple of series that follow, we examine financial markets, financial institutions and investments. These are important concepts whose understanding provide immense aid to individuals and institutions interested in knowing what to do with their money and how they can create and maximise their wealth. In this first part of […]
Performance of Selected African Stock Markets In 2020
The year 2020 started out on a good note for most African stock markets, with opportunities and investment prospects catching the attention of both local and foreign investors. The outbreak of the COVID-19 pandemic, however, resulted in a reduction in market activities and various indexes turned red by close of year 2020. Selling pressures intensified […]