48 Ghana’s central bank opted to leave its main interest rate unchanged at 29%, citing a slightly deteriorated inflation outlook over the past two months that necessitated close monitoring. The West African nation, known for its cocoa, gold, and oil production, has been grappling with its most severe economic crisis in decades. In an effort to navigate this challenging landscape, Ghana has been restructuring its debts, supported by a $3 billion International Monetary Fund (IMF) program. While inflation experienced a modest uptick in January before moderating in February, central bank governor Ernest Addison highlighted that the latest inflation projections indicated a more elevated trajectory compared to the previous policy meeting in January. Additionally, the bank’s Monetary Policy Committee announced adjustments to the Cash Reserve Ratio (CRR) to incentivize banks to increase lending rather than directing more funds towards Treasury bills. Under the new framework, the CRR will be tiered based on banks’ loan-to-deposit ratios, with higher ratios correlating to lower CRR requirements. According to Addison, these measures aim to compel banks to focus on traditional financial intermediation activities rather than excessive reliance on government securities. Looking ahead, the governor mentioned an upcoming visit from the IMF for a second review of Ghana’s Extended Credit Facility-backed program in April. Success during this visit could lead to a discussion by the IMF’s executive board in May and potentially trigger another loan disbursement. Moreover, Ghana is anticipating an additional $200 million loan for its cocoa board, COCOBOD, facilitated by a consortium of cocoa buyers. In January, Ghana successfully restructured $5.4 billion of loans with its official creditors and is currently engaged in negotiations with holders of approximately $13 billion in international bonds. You Might Be Interested In Cisco and Morgan Solar Launch Solar-Powered Office Spaces Initiative SALAMA Releases Audited Financial Results for FY 2023 Deutsche Bank Appoints Rodolfo Siason as Chief Country Officer for the Philippines America is courting India in part for its growing economic clout HK surges up in world rankings for expat pay package Shein Reportedly Files Confidentially for US IPO, Aiming to Raise Billions