Akufo-Addo’s globally acclaimed response to coronavirus yielding results – BoG

The measures put in place to deal with the ravages of the corona virus pandemic on the Ghanaian economy by President Akufo-Addo are beginning to yield results, Dr Ernest Addison, Governor of Bank of Ghana has said.

He said this when President Akufo-Addo paid a working visit to the central bank on Tuesday August 25,2020.

The BoG Boss said “Your Excellency, all across the globe, the COVID-19 pandemic has taken a toll on human lives, abruptly halted the steady growth recovery in advanced economies, and heightened economic uncertainty in emerging and developing countries.

“The disruptions to global supply chains have been unprecedented. In response to the economic fallout of the pandemic, policymakers have embarked on extensive measures to support health institutions, households, and businesses.

“Fiscal and monetary policy frameworks have been recalibrated to support growth and minimize the impact of COVID-19 on job losses and poverty.”

He added “In Ghana, our economy has been severely impacted by the pandemic, as economic activities slowed down significantly, and impacted negatively on individuals and businesses. However, once again, your able leadership and globally acclaimed response to the pandemic is beginning to yield results.

“Economic activity which dipped significantly during the peak of the lockdown, is already beginning to pick up as monitored by the Bank’s updated Composite Index of Economic Activity.

“The business and consumer confidence surveys conducted in June 2020 also shows some turnaround in sentiments reflecting the gradual lifting of the restrictions. The Bank’s response to the ongoing COVID-19 pandemic is further demonstration of its constant adaptation to the needs of the economy, while seeking to maintain price stability and financial stability.

“As central bank and banking sector regulator, the Bank of Ghana has responded to the unprecedented economic impacts of the pandemic with a number of policy and regulatory interventions including a reduction in its monetary policy rate, reduction of reserve requirements for banks and specialized deposit-taking institutions, reduction in the capital conservation buffer maintained by banks, reduction in provisioning requirements for certain categories of loans, and the purchase of Government bonds to support economic recovery efforts. These interventions have released liquidity in the banking system which has allowed banks to restructure existing loans and grant new ones to better support their clients.

“The Bank of Ghana’s ability to respond is a function of the policy space that was created prior to the pandemic, due to effective monetary policy and regulatory measures. This is what has distinguished the Bank of Ghana from other peer central banks. Your Excellency, we will continue with these sound policy measures aimed at restoring confidence and preserving stability of the Ghanaian economy. In the aftermath of the pandemic, we will have to carefully unwind some of these countercyclical measures that we have implemented to return the macroeconomic environment to the pre-COVID path and allow the financial system to function without the regulatory forbearance that we have put into place to support Ghana’s beyond Aid Agenda.

“We will also continue to play a key role in the sub-region, helping to shape economic cooperation and regional economic transformation initiatives within the West African Monetary Zone, ECOWAS, and the rest of the continent. Your Excellency, once again we are pleased to welcome you to the Bank of Ghana and gladly invite you for a brief address.”