Ghana interbank system in PAPSS to deepen inclusion - BoG

Bank Of Ghana 2021 20201 The Bank of Ghana Headquarters

Sat, 30 Apr 2022 Source: thebftonline.com

Oil to food shortages hit industry

Supply disruptions continue to be felt across Africa – from companies in Nigeria struggling to manage with the steep climb in diesel prices to the South African Canegrowers Association suffering from the combined impact of rising fertilizer costs, poor weather and an impending tax hike.

In Ghana, the soaring price of liquefied natural gas is causing a return to charcoal, compromising the government’s drive to avert deforestation by distributing free gas cylinders to encourage the switch to LNG. Meantime, two Asian powerhouses have taken divergent approaches to dealing with the global food shortage.

As India eagerly takes on its first assignment as a substitute wheat supplier to Egypt, Indonesia has taken a different stance by banning palm oil exports to protect domestic consumers. This ban has far reaching consequences on African countries like Kenya which depend solely on imports for its cooking oil and has already seen prices jump by 30% this year.

Naira steady at all-time low

The Naira held firm all week at 589 to the dollar in the parallel market, maintaining its weakest level on record. Nigeria and the UK agreed to enter discussions on an Enhanced Trade Partnership (ETP) in priority sectors to help strengthen bilateral trade, currently worth £3.2bn annually.

Just weeks after obtaining approval from the Central Bank of Nigeria to operate as a payment service bank, MTN Nigeria completed the country’s biggest issue of commercial paper as part of its strategy to diversify financing options, raising 127bn Naira in 184- and 254 day tenors priced at 8.50% yield. We expect the Naira to hold firm in the coming days as a result of reduced demand pressure.

Ghana interbank system in PAPSS to deepen inclusion

The Ghanaian Cedi depreciated marginally against the dollar from 7.53 last week to 7.56.

At the Money Summit in Ghana this week, the head of payments at the Bank of Ghana, Dr. Settor Amediku, said that inclusion of the Ghana Interbank Payment and Settlement Systems in the Pan-African Payment and Settlement System (PAPSS) will help deepen financial inclusion as businesses transact via mobile phones.

We expect further weakening for the Cedi amid continued capital outflows and global economic fallout from the Russia-Ukraine war.

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Source: thebftonline.com
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