GRi BEF News Ghana 10 - 04 - 2001
Targets for common currency within reach -
Ojo
Stock Index inches up, big sales in SSB, MLC
shares
Targets for common currency within reach -
Ojo
Accra (Greater Accra) 10 April 2001
Dr Michael Olufemi Ojo, Director-General of the West African Monetary Institute (WAMI), on Monday said targets in the convergence criteria towards a common currency are within reach.
He, however, admitted that the criteria are daunting and might be a problem for some countries that suffer from severe trade shocks.
Dr Ojo, who was briefing journalists on the integration programme of the West African Monetary Zone in Accra, called for a strict regime of fiscal discipline that would ensure compliance.
He said the idea of a common currency was not just mooted recently but "a culmination of what has been done since ECOWAS was born in 1975."
Six West African states have set themselves a target of reducing inflation to under 10 per cent by the end of last year and five per cent by 2002, an annual budget deficit below a ratio of five per cent of GDP by 2000 and four per cent by 2002. Another target is to maintain a ratio of reserves to imports cover of three months by 2002. The countries are Ghana, Nigeria, Sierra Leone, Guinea, the Gambia and Liberia.
Dr Ojo said even though the institute does not wield the political power to maintain a stable atmosphere, it sets out programmes and projects that suit a nation's purpose.
"The strategy is not to fix targets for nations but ones that meet international standards.
"We set ideal goals which result in countries adopting political decisions. But we are also flexible and provide room for re-adjustment when a member country suffers economic set-backs."
Dr Ojo said WAMI is an interim institution to prepare the ground for setting up the West African Central Bank (WACB) with specific functions to monitor and assess the convergence programme of economic and monetary policies of member states.
Dr Ojo said the programme is feasible and would enhance economic growth and development of the zone.
The emergence of an independent central bank in the zone will enhance monetary and financial stability, as well as increase inflow of foreign capital and higher standards of living for the citizens.
Dr Ojo said the execution of the programme would involve short-term costs and some discomfort for the citizens of member countries.
"But it is a worthwhile sacrifice in view of the gains associated. We need to discipline ourselves more than before and, of course, political leadership must be fully committed to the programme.
" ... There will be no room for individual weak economies such as ours in the globalised world economy."
The zone is expected to accelerate cross-border payments, trade and investment in a regional market of over 210 million people.
An action plan makes the scheme operational by January 2003 under the auspices of the WACB to be established by 2002.
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Stock Index inches up, big sales in SSB,
MLC shares
Accra (Greater Accra) 10 April 2001
The main market index of the Accra bourse inched up on Monday, buoyed by a 40-cedi gain by British-American Tobacco (BAT) and active sales in SSB bank and Mechanical Lloyd (MLC) shares.
BAT continued its rise and was the only gainer in three price changes during trading. Its 40-cedi appreciation overshadowed a 10-cedi loss by Enterprise Insurance Company and five-cedi loss by Camelot, to push the Ghana Stock Exchange All-Share Index up by 1.42 points.
The market index closed at 896.38 points, compared with Friday's close of 894.96 points.
The change for the year was higher at 4.48 points from 4.31 per cent on Friday.
SSB Bank sold 2,000,800 shares and MLC sold 631,200 shares out of a total of 2,681 shares that changed hands. This was a big jump over the 100,300 shares traded on Friday. However, the two equities did not appreciate in value.
BAT gained 40 cedis at 520 cedis, EIC lost 10 cedis at 2,890 and Camelot lost five cedis at 420 cedis.
Market capitalisation was up at 3,716.89 billion cedis from 3,714.20 billion cedis on Friday.
The following are the last prices of listed equities in cedis:
ABL 630
AGC 18,500
ALW 7,000
BAT 480 +40
CFAO 60
EIC 2,890 -10
FML 800
GBL 1,300
GCB 1,600
GGL 900
HFC 952
MGL 212
MLC 140
MOGL 18,700
PAF 275
PBC 450
PZ 621
SCB 21,700
SPPC 296
SSB 2,300
UNIL 1,750
CMLT 420 -5
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Accra (Greater Accra) 10 April 2001
Currency Buying Selling
US Dollar 7,014.73 7,219.73
Pound Sterling 10,147.51 10,451.28
French Franc 967.63 995.69
Swiss Franc 4,146.75 4,266.87
Deutsche Mark 3,244.30 3,340.35
Canadian Dollar 4,487.67 4,618.94
Japanese Yen 56.18 57.83
Dutch Guilder 2,880.28 2,963.73
S/African Rand 873.04 897.75
Euro 6,347.35 6,533.28
CFA Franc 9.68 9.96
Naira 64.56 66.44
ECOWAS/WAUA 8,847.19 --------
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