BANK OF GHANA NEWS BRIEF News Summaries from Foreign and Local Media

Tuesday, November 19, 2019

Crypto assets may force central banks into China warns on growth pressure, policy synchronisation inflation views Economists have found a new way in which China’s central bank has said it will “increase central banks’ “trilemma” may become a counter-cyclical adjustment” to ward off dilemma as crypto assets harm monetary downward pressure on the economy while policy independence. This could trigger staying vigilant on the possibility of competitive devaluation by central banks and expectations that inflation may spread. The undermine the value of traditional currency. economy faces greater difficulties as Experts stated their ideas on ‘crypto-enforced investment growth slows and industrial monetary policy synchronisation’ at a digital production remains sluggish, the bank said. currency conference in Oct. (www.bloomberg.com 18/11/19) (www.centralbanking.com 18/11/19) China's central bank cuts rate on reverse The challenges facing repo by 5 basis points to facilitate loans Christine Lagarde became the European China's central bank has launched a 7-day Central Bank’s fourth president on Nov 1, reverse repo and cut its rate by five basis during tough time for Eurozone monetary points to 2.5% in order to cut fund-raising policy. Not only has the ECB failed to meet its costs for enterprises. This is the first such cut target of eurozone inflation of under but close in the reverse repo rate in more than four to 2% but a range of economic data shows years, according to the China Securities inflationary pressures further weakening. Journal. The PBOC injected ¥180bn (about (www.centralbanking.com 18/11/19) $25.71bn) into the market through seven-day reverse repos. (www.xinhuanet.com 18/11/19) French official becomes ECB’s market operations director UK PM puts corporation tax cuts on hold to The ECB has appointed Imène Rahmouni- help fund NHS Rousseau, director of markets at the Banque Planned cuts to corporation tax next April are de France, as director-general for market to be put on hold, Boris Johnson has said, with operations. Rahmouni-Rousseau will take up the money being spent on the NHS and other the post on Feb. 1, 2020. Ulrich Bindseil held services. The rate paid by firms on their profits the role until he moved to manage market was due to fall from 19% to 17% but the PM infrastructure and payments at the ECB on told business leaders it may cost the Treasury Nov 1. (www.centralbanking.com 18/11/19) £6bn and this was better spent on "national priorities". (www.bbc.com 18/11/19) Trump says he told Fed's Powell US interest rates are too high German economy to remain weak in Q4, US President Donald Trump has said he recession unlikely complained to Fed Chair about Germany's economy is set to remain weak in high US interest rates in a meeting they held at the final three months of the year, but a the White House. “At my meeting with Jay recession is unlikely, the Bundesbank has said Powell this morning, I protested that our Fed in its monthly report. It expects "the current Rate is set too high relative to the interest rates period of weakness in the German economy to of other competitor countries,” Trump said. continue in the final quarter of 2019". (www.reuters.com 18/11/19) (www.rttnews.com 18/11/19)

EXCHANGE RATES OF SELECTED CURRENCIES CURRENCY BUYING SELLING

+USD/GBP 1.2954 (1.2911) 1.295 8 ( 1.2915 ) +USD/EUR 1.1072 (1.1048) 1.10 76 ( 1.1052 ) *GHS/USD 5.3606 (5.3581) 5.3660 (5.3635) *GHS/GBP 6.9441 (6.9179) 6.9 532 ( 6.9269 ) *GHS/EUR 5.9372 (5.9208) 5.9419 (5.9260) +SOURCE: BOG INTERNAL TRANSACTION RATES: 19/11/19 (Rates for 18/11/19 in brackets) * BOG INTERNAL TRANSACTION RATES: 19/11/19 (Rates for 18/11/19 in brackets)

Vol.: 46 No: 2 Date: 19/11/19

BOJ has room to cut rates further, says Oil eases amid concern over US-China Kuroda trade talks dragging on Bank of Governor Haruhiko Kuroda has US oil prices fell for the second straight day on said the central bank has room to lower Tuesday amid market jitters over limited interest rates further. However, there were progress between China and the US on rolling limits to how long rates could go down, he back trade tariffs while rising US inventories added. At the last monetary policy meeting in also jangled nerves. Brent crude futures were Oct., the BOJ maintained its policy rates but down 20 cents, or 0.32%, at $62.24. tweaked its forward guidance signalling (www.reuters.com 19/11/19) further easing. (www.rttnews.com 18/11/19) S.A's SAA to resume some regional flights,

RBA minutes on tap for Tuesday cancel domestic flights The Reserve Bank of Australia will release the Embattled South African Airways (SAA) has minutes from its monetary policy meeting said it would resume flights to six African highlighting a light day for Asia-Pacific destinations but cancel some domestic flights economic activity. At the meeting, the RBA in the next two days. State-owned SAA has left its key interest rate unchanged at the cancelled hundreds of flights since a strike record low 0.75%, as widely expected, after began on Friday, saying the stoppage is costing R50m ($3.36m) per day. cutting it by a quarter point in Oct. (www.af.reuters.com 18/11/19) (www.rttnews.com 18/11/19) Food prices push Nigerian annual inflation Argentina’s currency controls help stabilise up to 11.61% in Oct peso and reserves Higher food prices after borders with The Central Bank of Argentina appears to neighbouring countries were closed in a have succeeded in stabilising the exchange crackdown on smuggling pushed up annual rate with the tougher currency controls it inflation in Nigeria last month. Annual implemented following the Oct. presidential inflation was 11.61% in Oct. up from 11.24% election. After the election of the left-wing in Sept., the National Bureau of Statistics has opposition leader Alberto Fernández on Oct. said. (www.bloomberg.com 18/11/19) 27, the central bank stipulated that individuals can only purchase up to $200 per month. Zimbabwe central bank changes tack, halves (www.centralbanking.com 18/11/19) key rate to 35% Zimbabwe’s central bank halved its key Hong Kong jobless rate rose in Oct interest rate to 35%, joining the finance Hong Kong's jobless rate rose during the Aug. ministry in efforts to revive an economy to Oct. period, data from the Statistics hobbled by years of mismanagement. The Department show. The unemployment rate decision reverses a move by the country’s increased to 3.1% during the Aug. to Oct. newly-formed MPC which raised the rate from period from 2.9% during the three-month 50%. (www.bloomberg.com 19/11/19) ended in Sept. (www.rttnews.com 18/11/19) Botswana cuts 2019 economic growth Czech PPI slowed in Oct forecast Czech producer price inflation eased in Oct., Botswana’s economy is expected to grow by figures from the Czech Statistical Office show. 3.6% this year, President Mokgweetsi Masisi The producer price index rose 0.9% year-on- has said, down from a previous forecast of year in Oct. after a 1.9% increase in Sept. 4.3%. GDP growth in the diamond-producing Among the main components, prices for southern African nation is projected to expand electricity, steam and air conditioning grew by 4.4% in 2020, Masisi said. 7.5% annually in Oct. (www.rttnews.com 18/11/19) (www.af.reuters.com 18/11/19)

DISCLAIMER: This information has been compiled by the Secretary’s Department of Bank of Ghana for general reference purposes only. While every effort is made to ensure that the information is accurate, the Bank of Ghana does not guarantee nor does it accept any responsibility or liability for the accuracy or completeness of the content or for any loss which may arise from reliance on information contained in this document.