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The
Bank
of
Ghana
(BoG)
has
stepped
up
efforts
to
bring
inflation
under
control,
eliminate
monetary
financing
of
budget,
and
rebuild
foreign
currency
buffers,
Governor
Dr
Ernest
Addison
has
said.
He
said
the
central
bank
is
also
taking
steps
to
implement
comprehensive
strategy
to
ensure
rebuilding
of
capital
buffers
of
financial
institutions’
post-Domestic
Debt
Exchange
Programme
(DDEP)
and
establishing
the
Ghana
Financial
Stability
Fund
to
provide
additional
support
to
the
financial
sector.
“These
measures
are
beginning
to
yield
positive
results.
Signs
of
stabilization
and
recovery
in
the
Ghanaian
economy
are
emerging.
The
latest
releases
show
that:
•
Real
GDP
Growth
ended
2023
at
2.9
percent,
up
from
the
revised
target
of
2.3
percent,
driven
by
the
services
and
agriculture
sectors.
Growth
in
2024Q1
came
in
stronger
than
expected
at
4.7%,
with
the
industrial
sector
posting
a
growth
rate
of
6.8%.
•
Inflation
which
peaked
at
54.1
%
in
December
2022,
and
has
decelerated
faster-than-expected
and
reached
22.8
percent
in
June
2024,
underpinned
by
strong
policies,
and
effective
liquidity
sterilization
efforts.
•
Fiscal
policy
implementation
has
been
broadly
aligned
with
requirements
under
the
IMF-supported
programme.
•
Banking
sector’s
performance
has
improved
as
adverse
spillovers
from
DDEP
and
macroeconomic
challenges
receded,”
Dr
Addison
said
during
At
the
SME
Growth
and
Opportunity
Summit
on
Tuesday
July
16.
Regarding
the
banking
sector,
Dr
Addison
indicated
that
the
sector
remains
stable,
liquid,
and
profitable.
“Significant
profits
were
recorded
in
2023,
helping
to
correct
losses
from
2022.
Meanwhile,
banks
impacted
by
domestic
debt
restructuring
have
submitted
capital
restoration
plans
which
are
being
implemented.
At
the
same
time,
Ghana
Financial
Sector
Fund
established
—with
an
initial
allocation
of
US$750
million,
comprising
US$250
million
from
the
World
Bank
and
US$500
million
from
GoG—to
provide
recapitalisation
support
to
the
financial
sector
(banks
and
non-banks)
is
in
progress.
“Gross
international
reserves
position
has
improved.
At
the
end
of
April
2024,
the
stock
of
Gross
International
Reserves
increased
to
US$6.59
billion
representing
3.0
months
of
import
cover,
compared
with
US$5.91
billion
(2.7
months
of
import
cover)
at
end-December
2023.
“The
exchange
rate
which
recently
come
under
some
pressure,
has
begun
to
stabilise
as
uncertainties
surrounding
the
progress
of
debt
restructuring
negotiations
with
external
creditors
has
been
eliminated
and
the
Bank
of
Ghana’s
Gold
Purchase
programme
over
over-performed.”