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

Monday, December 23, 2019

Schnabel and Panetta appointed ECB US economic growth unrevised at 2.1% in executive board members Q3, matching expectations Isabel Schnabel and Fabio Panetta have been A report released by the Commerce appointed by the European Council to the Department shows that US economic growth executive board of the European . in the third quarter was unrevised from the They will start their 8-year terms on Jan 1. previous estimate. The Commerce Department The distribution of individual responsibilities said real GDP jumped by 2.1% in the third they will receive in Jan. will be an important quarter, unchanged from the estimate released factor in determining their influence at the last month and in line with economist ECB. Schnabel is professor of financial expectations. (www.rttnews.com 20/12/19) economics at the University of Bonn in Germany (www.centralbanking.com 20/12/19) Andrew Bailey to be next BoE Governor Andrew Bailey, the chief executive of the Eurozone current account surplus rose in Financial Conduct Authority, has been Oct appointed as ’s successor. Bailey The euro area current account surplus will take over as Governor of the Bank of increased in Oct. driven by trade surplus and England in 2020. Announcing the appointment primary income, data from the European on Dec. 20, Chancellor Sajid Javid noted that Central Bank showed on Friday. The current Carney would once again be extending his account surplus advanced to €32bn from term of office, this time for another two €28bn in the previous month. The surplus on months to March 31 to ensure a “smooth trade in goods increased to €30bn from €27bn transition. (www.centralbanking.com 20/12/19) and the surplus on services remained unchanged at €10bn. (www.rttnews.com 20/12/19) Global use of Libra, other stable coins could curb yuan's internationalisation – PBOC Manufacturing leverage weakens ECB The global use of Facebook’s Libra and other monetary policy stable coins could curb the Chinese yuan’s Higher leverage among eurozone international development, the official Xinhua manufacturing firms weakens the news has reported, citing the central bank’s effectiveness of the monetary policy, a Vice Governor Chen Yulu. They could also working paper published by the Bank of weaken the effects of capital controls and lead finds. In corporate leverage and monetary to volatile asset prices, which could impact policy effectiveness in the euro area, Simone financial stability. (www.reuters.com 23/12/9) Auer, Marco Bernardini and Martina Cecioni focused on the eurozone’s manufacturing ready to account for Popolare sector. (www.centralbanking.com 20/12/19) di Bari supervision Bank of Italy “positively” fulfilled its Ingves elected ESRB vice-chair supervision duties and is ready to account for Sveriges Riksbank Governor Stefan Ingves its actions on failing lender Banca Popolare di has been elected first vice-chair of the Bari, Governor Ignazio Visco says. “Banking European Systemic Risk Board. He will work supervision has accomplished its duties with alongside , who chairs the the highest effort and, in my opinion, board. (www.centralbanking.com 20/12/19) positively,” he said. (www.reuters.com 23/12/19)

EXCHANGE RATES OF SELECTED CURRENCIES CURRENCY BUYING SELLING

+USD/GBP 1.3049 (1.3023) 1.3051 ( 1.3025 ) +USD/EUR 1.1087 (1.1120) 1.1088 ( 1.1124 ) *GHS/USD 5.5368 (5.5373) 5.5424 ( 5.5429 ) *GHS/GBP 7.2250 (7.2113) 7.2333 ( 7.2196 ) *GHS/EUR 6.1401 (6.1587) 6.1445 (6.1632) +SOURCE: BOG INTERNAL TRANSACTION RATES: 23/12/19 (Rates for 20/12/19 in brackets) * BOG INTERNAL TRANSACTION RATES: 23/12/19 (Rates for 20/12/19 in brackets)

Vol.: 51 No: 1 Date: 23/12/19

China's private economy to thrive in better levels in around six months in the wake of a business environment decision by Sweden’s central bank to hike China will further optimize its business interest rates out of negative territory. But they environment to unleash the vitality of private dipped 1-2 basis points in early Monday trade, firms and boost fair competition. Under the reflecting demand for safe-haven sovereign guideline jointly released by the Central debt ahead of the Christmas holiday period. Committee of the Communist Party of China (www.reuters.com 23/12/19) and the State Council, more sectors will be Oil eases but supported by trade deal hopes opened up to private firms. Private firms will Oil prices fell on Monday, but were holding be encouraged to provide basic near recent three-month highs amid telecommunication services through equity expectations that the US and China will soon participation, and engage in power generation. (www.xinhuanet.com 22/12/19) agree on a trade deal, with President Trump saying an agreement would be signed “very Chinese banks report forex settlement shortly”. Brent crude was down 16%, or 0.2%, deficit in Nov at $65.98 a barrel. West Texas Intermediate China's banks posted a net forex settlement was down 22 cents, or 0.4%, at $60.22 a deficit of ¥39.6bn, or $5.6 bn, in Nov., the barrel. (www.reuters.com 23/12/9) country's forex regulator has said. The reading expanded from a deficit of ¥31.1bn registered West Africa renames CFA franc but keeps in Oct., according to the State Administration it pegged to euro of Foreign Exchange. Forex purchases by West Africa’s monetary union has agreed with banks stood at ¥1.04tr last month. France to rename its CFA franc the Eco and (www.xinhuanet.com 20/12/19) cut some of the financial links with Paris that have underpinned the region’s common European shares edge lower ahead of currency since its creation soon after World Christmas holiday break War Two. (www.af.reuters.com 22/12/19) European shares dipped slightly on Monday after nearing a record high in the previous IMF approves $2.9bn financing package for session, as trading thinned ahead of the Ethiopia Christmas and Boxing Day holidays. The pan- The IMF’s Executive Board has approved a European STOXX 600 index was down 0.1%, three-year $2.9bn financing package to support with the banking sector leading declines. Ethiopia’s economic reform programme, the (www.reuters.com 23/12/9) IMF has said. The agreement, supported by the Fund’s ECF and EFF, “aims to support the BOJ to revamp 'tankan' survey to add authorities’ implementation of their ambitious details on FX rates reform agenda and catalyze concessional Bank of Japan will make changes to its closely donor financing,” the IMF said. watched “tankan” quarterly survey starting (www.af.reuters.com 21/12/9) from the next time it is due in March next year, the central bank has said. The move is Exports of Nigerian Qua Iboe crude oil to aimed at providing markets more information rise, Bonny to fall in Feb on how globalization is affecting companies’ AngloGold Exports of Nigerian Qua Iboe behaviour. (www.reuters.com 23/12/19) crude oil are set to rise in February, while those of Bonny Light will fall, preliminary Eurozone bond yields drift lower programmes seen by traders show. Exports for Eurozone bond yields drifted down on Qua Iboe have been set at 230,000 barrels per Monday as investors plumped for the safety of day (bpd) in Feb. versus 215,000 bpd in Jan. safe-haven government debt in thin pre- Bonny Light exports are estimated at 230,000 holiday trade. French, German and Dutch 10- bpd in Feb. compared to 276,000 bpd in Jan. year bond yields last week hit their highest (www.af.reuters.com 21/12/9)

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