{"id":6434,"date":"2024-06-10T11:50:36","date_gmt":"2024-06-10T11:50:36","guid":{"rendered":"https:\/\/www.fishfmonline.com\/?p=6434"},"modified":"2024-06-10T11:50:39","modified_gmt":"2024-06-10T11:50:39","slug":"gh%c2%a210-5bn-bog-loss-does-not-indicate-a-loss-of-policy-effectiveness-bernard-otabil","status":"publish","type":"post","link":"https:\/\/www.fishfmonline.com\/?p=6434","title":{"rendered":"GH\u00a210.5bn BoG loss does not indicate a loss of policy effectiveness \u2013 Bernard Otabil"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>The Director of Communications at the Bank of Ghana, Mr. Bernard Otabil has said the GH\u00a210.5 billion loss does not indicate a loss of policy effectiveness, as the bank remains committed to deploy monetary policy tools to maintain a stable inflation in line with its primary price stability mandate.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Bank of Ghana clarified the cost incurred on its open market operations, which contributed largely to the Bank\u2019s loss position in the audited 2023 financial statements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Central Bank\u2019s annual report and financial statements, there was a cost of GH\u00a28.3 billion on open market operations, resulting in an overall loss of GH\u00a210.5 billion for the 2023 financial year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mr Bernard Otabil said \u201cFirst, central banks pursue national welfare and not profits\u201d, Otabil said, adding: \u201cFrom December 2022 to December 2023, headline inflation decreased from 54.1 percent to 23.2 percent and that has come with a huge cost. However, the long term benefits of low and stable inflation always outweigh the costs incurred in the short term to bring it down\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cCompared to the GH\u00a21.7 billion cost of open market operations in 2022, the almost fivefold increase in mopping up liquidity from the economy to reduce inflation is significant\u201d, Mr Otabil explained.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He continued, \u201cCentral banks can make losses, get into negative accounting equity and function completely successfully. Therefore, central banks are not expected to compromise policy objective to report handsome profit.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ose-youtube ose-uid-9ecfd621844679ddb75e9e99f6cb2d45 ose-embedpress-responsive\" style=\"width:400px; height:400px; max-height:400px; max-width:100%; display:inline-block;\" data-embed-type=\"Youtube\"><iframe loading=\"lazy\" allowFullScreen=\"true\" width=\"400\" height=\"400\" src=\"https:\/\/www.youtube.com\/embed\/f2-SBLvMwBo?feature=oembed&color=red&rel=0&controls=1&start=&end=&fs=0&iv_load_policy=0&autoplay=0&mute=0&modestbranding=0&cc_load_policy=1&playsinline=1\" frameborder=\"0\" allow=\"accelerometer; encrypted-media;accelerometer;autoplay;clipboard-write;gyroscope;picture-in-picture clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen referrerpolicy=\"origin\"><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOur strong actions to control inflation reinforce our credibility and commitment to our mission. Showing that we can effectively manage inflation, boosts confidence both domestically and internationally. This trust is vital for attracting foreign investment and maintaining favorable trade conditions,\u201d the BoG Director of Communications noted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Bank of Ghana emphasized that its core mandate is to pursue policies aimed at achieving a stable level of inflation in line with its medium-term target of 8 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The apex bank however mentioned that it will tolerate inflation fluctuations of plus\/minus 2 percentage points of this medium-term target.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The BoG concluded that it remains committed to its price stability mandate and the well-being of all Ghanaians.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Director of Communications at the Bank of Ghana, Mr. Bernard Otabil has said the GH\u00a210.5 billion loss does not indicate a loss of policy effectiveness, as the bank remains committed to deploy monetary policy tools to maintain a stable inflation in line with its primary price stability mandate. The Bank of Ghana clarified the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[9,41],"tags":[2195,2121],"class_list":["post-6434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-general-news","tag-benard-otabil","tag-bank-of-ghana-2"],"_links":{"self":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6434"}],"version-history":[{"count":1,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6434\/revisions"}],"predecessor-version":[{"id":6436,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6434\/revisions\/6436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/media\/6435"}],"wp:attachment":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}