Homes for sale upper volta ghana3/24/2023 The current difficult economic conditions, unfortunately, does not augur well for the future of the bourse.Ĭollective Investment Schemes (CIS) such as mutual funds and unit trusts pool funds from several investors to purchase a wide range of assets. This is not even accounting for inflation or currency depreciation. However, stocks as measured by the GSE Composite Index have yielded negative returns in 4 of the 5 years from 2018 to 2022. Also, the government’s fiscal struggles have dented the perception of treasury bills as a risk-free investment.Īnother popular investment in Ghana is the shares of companies listed on the Ghana Stock Exchange (GSE). Nevertheless, treasury bills in the past several months have lost their inflation-protection quality as the interest rates of about 35% they return are far below the inflation rate of 54.1%. These are also popular forms of investment, with well over GHS1 billion invested in them every week. Treasury bills are fixed-interest government securities ranging in maturity from 91 to 364-days. However, the debt exchange has shown that bonds are not without risk and they may not be the gold standard for investment that they had hitherto been viewed as. Billions flowed into government bonds and for good reason – the minimum capital required was low, the returns were generous, and the risk was (supposedly) non-existent. The debt exchange has unsettled many investors (domestic and international) who considered government securities as the best form of investment in Ghana. While every significant investment decision one takes should involve a licensed financial advisor, as someone who has closely followed a wide range of investments in Ghana, I believe I can share some insights that would prove useful to people who are wondering what options are available to them on the Ghanaian market and beyond. This, in addition to a successful debt exchange programme, will contribute to the reopening of access to the international capital markets for the country and hopefully place the public debt of GHS 575 billion (93.5% of GDP) back on a sustainable path. Disbursements from the fund will provide both budget support to the government and balance of payments support to the central bank. Prospects for an economic recovery largely hinge on the receipt of board approval for a $3 billion Extended Credit Facility (ECF) from the International Monetary Fund (IMF). Data from the Bank of Ghana’s Summary of Economic and Financial Data shows that the cedi depreciated by 30% against the US dollar in 2022 while inflation reached 54.1%, a rate not recorded since the 1990s. The debt exchange programme comes in the wake of challenging economic conditions in 2022 which, according to the finance minister, has left Ghana’s public debt unsustainable. On Friday, February 3, 2023, the Finance Ministry released the Second Amended and Restated Exchange Memorandum offering to issue new bonds for institutional and individual bondholders invested in Government of Ghana (GoG), ESLA Plc and Daakye Trust Plc bonds to the tune of GH¢130 billion.
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