Earlier this year, I stated that the Bank of Ghana’s audited financial statements would show substantial losses. Government communicators dismissed it as false, and some resorted to personal attacks. The losses were later confirmed when the statements were published.
I also said the losses were mainly due to policy failure as a result of the revision of the prior Cash Reserve Ratio (CRR) on foreign deposits, and not the so-called “cost of stability.” That was denied as well.
Yesterday, the Bank of Ghana revised the dynamic Cash Reserve Ratio and reversed the CRR for foreign exchange deposits that had been implemented by the previous administration.
Later this week, I’ll share what I expect to happen in the banking system regarding FX deposits from next month. They’ll call it a lie again, but it will happen.
I observe in whole and analyze in whole.
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