Currency outside banks grew consecutively in 2022, despite the policy rate of the Bank of Ghana going up by more than 10% to curtail inflation as well as currency pressures.

According to the January 2023 Summary of Economic and Financial Data by the Bank of Ghana, money in circulation grew consecutively throughout the year, with the biggest growth of 51.1% occurring in November 2022.

The figures from the Bank of Ghana indicate that money supply shot up consecutively from January 2022 to November 2022, and then took a slight nose dive in December 2022 to 44.3%.

Some analysts and market watchers have argued that the increase in the money supply confirm the significant printing of money by the Bank of Ghana to the tune of over ¢22 billion in 2022.

According to the data from the Bank of Ghana, currency outside banks or in circulation grew by 9.8% in January 2022 to 11.4% in February 2022 and then to 14.3% in March 2022 respectively.

It again went up to 16.3% in April 2022 and subsequently to 18.3% in May 2022 and 19.1% in June respectively.

It reached 20.3% in July 2022 and then to 23.6%, 26.4% and 31.4% in August 2022, September 2022 and October 2022 respectively.

Growth of demand deposits fluctuate

Meanwhile, growth of demand deposits, usually current and call accounts fluctuated throughout 2022.

It grew by 27.6% in January 2022 and subsequently to 27.9% in February 2022, but declined to 17.6% in March 2022. It maintained the 17.6% growth rate in April 2022, but fell to 13.3% in May 2022, and again went down sharply to 8.3% in June 2022.

But it rose to 14.4% in July 2022, and later went down sharply to 8.7% and 8.4% in August 2022 and September 2022.

Surprisingly, it went up significantly to 23.2% in October 2022 at a time the Domestic Debt Exchange Programme was taking shape.

It, however, declined to 13.5% in November 2022, but rise to 19.8% in December 2022.

Importantly, banks prioritised demand deposits because it comes with virtually no cost.

Growth of Savings and Time Deposits varied

Also, the growth of Savings and Time Deposits varied in 2022

It grew by 8.3% in January 2022 but declined to 6.6% in February 2022, and later rose to 9% and 9.99% in March 2022 and April 2022 respectively.

From 13.5% growth in July 2022, it reached 17.2% growth in August 2022, but took a nose dive to 14.7% in September 2022.

Again, it fell to 11.5% in October 2022, but rose consecutively in November 2022 and December to 25.1% and 28.4% respectively.