Report shows Ghanaians are losing interest in foreign accounts due to cedi’s new strength
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Report shows Ghanaians are losing interest in foreign accounts due to cedi’s new strength

- Information available shows that the cedi has gained value against the dollar in the last two months

- This has reduced the desire of account holders to continue operating foreign accounts

- Out of GHC83.1 billion in total deposits, only GH¢23.2billion was in foreign currency as of February 2020

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The March 2020 Banking Sector Report of the Bank of Ghana shows that the cedi has displayed strength in the last two months.

As a result, it has become unattractive to hold foreign currency accounts.

YEN.com.gh understands that out of GHC83.1 billion in total deposits, only GH¢23.2billion was in foreign currency as of February 2020.

Report shows Ghanaians are losing interest in foreign accounts due to cedi’s strength

Source: thebftonline.com
Source: UGC

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Per a report by thebftonline.com, though it represents a 23% year-on-year growth, it is slower growth, compared to the 43% growth recorded in December 2019.

Information available also shows that deposits of non-residents have shrunk by 30.7%, compared to a mere 4.3% contraction in December 2019.

This has been attributed to the cedi’s performance at the beginning of the year, as it appreciated by 4.5% as of the end of February 2020.

Meanwhile, another Banking Sector Report has proven that a growing number of banks in Ghana are giving out more deposits as loans to businesses.

The March 2020 report revealed that over half of the deposits to banks between February 2019 and February 2020, were given out as loans.

This, YEN.com.gh has learned, is an indication of the readiness of banks to support the private sector with access to capital for expansion.

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Source: Yen.com.gh

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