Bank of Ghana, Dr. Abdul Nashiru Issahaku-Governor of Bank of
What, Why & When:
Ghana's central bank has a mandate to pursue "price
stability and create an enabling environment for sustainable
economic growth in the economy" 1.
Against this backdrop, the Bank of Ghana (BoG) has for the 5th
time this year maintained the monetary policy rate at 26%,
according to statement following the 19th September Monetary Policy
Committee (MPC) meeting 2: The policy rate has been left
unchanged since November 2015.
In justifying its decision, the bank explained that the rise in
inflation from 16.7% in July to 16.9% in August, was only marginal.
Moreover, the MPC envisages continued tightness in monetary and
fiscal policy, and relative stability in the foreign exchange
N.B: The cedi has enjoyed some stability this year –
depreciating by only 4.1% as at mid-September as compared to 15%
recorded for the same period last year.
All other things being equal, demand-pull dynamics from the
approaching festive season will drag Ghana further still from its
medium term goal of single digit inflation 3.
Having said that, three factors militate against a significant
uptick in consumer prices: a) fiscal restraint, if it is
maintained, and IMF "pressure" makes this more likely, b)
an inhospitable private sector credit environment, c) burgeoning
foreign exchange stability. On the latter point, progressively
higher production from the Jubilee and Tweneboa Enyenra Ntomme
(TEN) fields next year, support the outlook further still.
Low-level violence e.g. clashes between rival NDC/NPP
'youth' around polling booths are likely in the run up to
polling day (elections are scheduled for 7th December, 2016).
However, significant political-risk led disruption of the
economic/business life of the country, which would feed through to
higher inflation, remains a remote possibility at this stage.
The next MPC meeting is scheduled for November, 2016.
Garnishee Proceedings as a means of enforcing monetary judgment in Nigeria is chaotic and difficult. It has become more of a fishing expedition wherein a judgment creditor will garnish all the commercial Banks in the country with the hope of striking gold by finding monies belonging to the judgment debtor in one or more of the garnished Banks.
A letter of credit in the Nigerian context is the assurance a foreign seller receives from a Nigerian Bank that it will be paid for the goods it has made arrangements to have delivered to a Nigerian buyer...
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