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

Monday, 14th September 2020

Flu pandemic of 1918 hit poor economies UK economy continues recovery in July hardest The UK economy expanded for the third Poorer countries’ economies were particularly straight month in July as lockdown measures affected by the influenza pandemic that began continued to ease though it has still only in the year 1918, a working paper published recovered just over half of the lost output by the European finds. In caused by the coronavirus. GDP expanded Macroeconomic risks across the globe due to 6.6% in July from June, when it gained 8.7%, the Spanish Flu, Roberto De Santis and data published by the Office for National Wouter Van der Veken use a non-linear Statistics showed. GDP was forecast to climb method to assess how much different 6.7%. (www.rttnews.com 11/09/20) countries’ GDP declined during the pandemic. (www.centralbanking.com 11/09/20) Bank of England delays gilt buy-back after ongoing CREST problems ECB has ‘no room for complacency’, Lane The Bank of England postponed a gilt says purchase operation it was due to hold on The ’s chief economist Monday due to ongoing technical problems Philip Lane has stressed it is ready to increase with the CREST financial markets settlement its stimulus if necessary, in comments in a system. “Today’s short maturity gilt purchase blog post Sept. 11. Lane’s comments are operation will instead take place on, 17 Sept. considerably more forceful about risks facing 2020,” the BoE said. (www.reuters.com 14/09/20) the than the statement by ECB president in the monetary Former PM Cameron says he has policy press conference the previous day. (www.centralbanking.com 11/09/20) misgivings about Brexit move Former British Prime Minister David Cameron Euro zone yields steady after dovish ECB joined other ex-leaders of the country to comments and before Fed express concern at Boris Johnson’s plan to Euro zone bond yields steadied in early trade, break international law by overriding parts of with the benchmark German yield close to - the Brexit divorce treaty with the European 0.5% as traders digested last week’s dovish Union. “Passing an act of parliament and then tone from European Central Bank going on to break an international treaty policymakers and looked towards the Federal obligation is the very, very last thing you Reserve’s two-day policy meeting. should contemplate. (www.reuters.com 14/09/20) (www.reuters.com 14/09/20) The Federal Reserve preps for its final Netherlands nominates to meeting before the election the ECB board American lawmakers cannot agree on the next The Dutch government nominated Frank steps to aid the country's fragile recovery from Elderson to the executive board of the the coronavirus pandemic. That means more European Central Bank on Sept. 11. Elderson pressure on the US Federal Reserve. Fed would replace in the six-member officials convene for their final meeting before body when his term expires in Dec. 2020. Nov.'s election on Sept. 15 and 16. The central Currently, the official from is bank is expected to set new economic and vice-chair of the ECB’s supervisory board, projections that run through 2023. and is effectively its senior legal official. (www.cnn.com 13/09/20) (www.centralbanking.com 11/09/20)

EXCHANGE RATES OF SELECTED CURRENCIES

CURRENCY BUYING SELLING

+USD/GBP 1.2782 (1.2865) 1. 2783 ( 1.2866 ) +USD/EUR 1.1838 (1.1871) 1.1 8 39 ( 1.1872 )

*GHS/USD 5.6939 (5.6941) 5.69 95 ( 5.6997 )

*GHS/GBP 7.2779 (7.3254) 7. 2857 ( 7.3333 ) *GHS/EUR 6.7407 (6.7596) 6. 7 467 ( 6.7657 )

+SOURCE: BOG INTERNAL TRANSACTION RATES: 14/09/20 (Rates for 11/09/20 in brackets) * BOG INTERNAL TRANSACTION RATES: 14/09/20 (Rates for 11/09/20 in brackets)

Vol.: 38 No: 1 Date: 14/09/2020

Bank of Canada looking at inequality, M&A lifts European shares despite Brexit governor says worries The Bank of Canada could place more European shares ended a choppy trading emphasis on inequality as a result of its session higher, as investors weighed signs of a ongoing framework review, governor Tiff pick up in M&A activity against the economic Macklem said on Sept. 10. The central bank’s threat from growing prospects of a no-deal monetary policy framework is up for review Brexit. The pan-European STOXX 600 next year. As part of this process, the Bank of index .STOXX rose 0.1% and ended the week Canada is conducting a “horse race” between about 1.8% higher. (www.reuters.com 11/09/20) different possible frameworks. (www.centralbanking.com 11/09/20) Crude oil futures settle slightly higher Crude oil prices recovered after an early German economic recovery weakens but set setback, and despite staying sluggish for much to continue in second-half of the day's session, managed to close slightly Germany’s economic recovery from the higher. West Texas Intermediate crude oil coronavirus crisis has weakened, but the futures for October ended up $0.03 or about revival is likely to continue in the rest of 2020, 0.08% at $37.33 a barrel. WTI crude oil the Economy Ministry said. Europe’s largest futures lost over 6% for the week. Brent Crude economy, which has been hit hard by the futures advanced $0.16 or about 0.4% to pandemic, will not reach its pre-crisis level $40.22 a barrel. (www.rttnews.com 11/09/20) until the beginning of 2022, the ministry said in its monthly report. (www.reuters.com 14/09/20) World’s gold miners wary of production ramp-up despite price surge Bank of Israel appoints senior officials The world’s top gold miners are retrenching The Governor of the Bank of Israel, Amir after COVID-19 related shutdowns despite Yaron, has appointed two women to its most record prices for the yellow metal, with cost- senior communication and administrative roles conscious executives prioritizing investor within the bank this month. Yaron also returns over production growth. accepted the Israeli Justice Ministry’s (www.af.reuters.com 14/09/20) nomination of David Heshin as chairman of the central bank’s committee for the S.African economy to shrink by more than appointment of banking corporation directors. government's 7% forecast in 2020 (www.centralbanking.com 11/09/20) South Africa’s economy will likely contract this year by more than the 7% previously China pumps net $34bn into markets forecast by the Treasury, Finance Minister Tito China's central bank pumped a net ¥230bn Mboweni said in a publication. GDP shrunk by (about 3.63bn US dollars) of liquidity into the a record 51% in the second quarter, its fourth country's banking system via open market quarterly contraction in a row, as a strict operations during the last week to maintain lockdown to curb the spread of the coronavirus liquidity at a reasonable and ample level. saw activity grind to a near-standstill. (www.xinhuanet.com 13/09/20) (www.af.reuters.com 13/09/20)

JGBs little changed ahead of election S.Africa's central bank to pause cutting on results, central bank meetings Sept.17, trim in Nov Japanese government bond prices were little South Africa’s Reserve Bank will pause in changed on Monday in thin trade, as investors easing its repo rate next week and cut it by a stayed away from taking big positions ahead quarter of a % to 3.25% in Nov. to cushion a of election results for the country’s ruling deep pandemic-driven economic contraction party to choose a successor to Prime Minister before inflation resurfaces, a Reuters poll Shinzo Abe. (www.reuters.com 14/09/20) found. (www.af.reuters.com 11/09/20)

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.