Bloomberg News

Ghana’s Mahama Nominates Central Bank Governor as Vice President

July 31, 2012

Bank of Ghana Governor Kwesi Amissah- Arthur was nominated to become vice president of West Africa’s second-biggest economy, a week after the death of President John Atta Mills.

Amissah-Arthur, a former deputy finance minister who headed the central bank for almost three years, was proposed by new President John Dramani Mahama, the leader’s spokesman, John Jinapor, said by phone yesterday from Accra, the capital.

The governor “comes with a wide range of experience and knowledge and will also have a good working relationship with the president,” Jinapor said. Amissah-Arthur’s nomination has been communicated to Parliament and will be referred to the body’s appointments committee for approval, he said.

Amissah-Arthur was appointed by Mills, who died on July 24 with five months left in his first term in office. Former Vice President Mahama was sworn in six hours later in the world’s second-biggest cocoa producer and will be the ruling National Democratic Congress Party’s candidate for an election in December.

The yield on Ghana’s $750 million Eurobond, due 2017, fell by 4 basis points, or 0.04 percentage point, to 5.657 percent by 7:42 p.m. yesterday in Accra, the lowest in almost two weeks, according to data compiled by Bloomberg. The cedi weakened 0.1 percent to 1.955 a dollar.

The governor’s nomination comes as inflation slowed from 18 percent in his first month in office in October 2009 to 9.4 percent in June. This year, he raised the policy lending rate 2.5 percentage points to 15 percent to cool economic growth and reverse a weakening in the local currency.

The cedi has weakened 16 percent against the dollar this year after economic growth reached 14.4 percent in 2011, the fastest pace in Africa, boosted demand for dollars. Expansion in the $31 billion economy is expected to reach 9.4 percent this year, according to the Finance Ministry.

To contact the reporter on this story: Ekow Dontoh in Accra at edontoh@bloomberg.net

To contact the editor responsible for this story: Emily Bowers at ebowers1@bloomberg.net


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