Currency in circulation which determines the level of liquidity in an economy grew by GHS854.53 million to GHS14.59 billion at the end of November 2019.

Currency also outside the banking system was estimated to be GHS13.17 billion in November 2019, compared with GHS12.29 billion, according to the Bank of Ghana’s November 2019 Statistical Bulletin.

Though there is more money in circulation for transactions, it appears many more funds expected to sit with commercial banks are outside the banking system.

Further, total deposits of 23 commercial banks with the Bank of Ghana was GHS8.19 billion as at 30 November 2019.

This is a drop of GHS396.15 million from the October 2019 figure of GHS8.59 billion.

However, the Government of Ghana funds sitting with the Bank of Ghana is estimated at GHS4.53 billion in November 30, 2019, lower than the GHS5.96 billion registered in October 2019.

In all, the total deposits of commercial banks, government and public institutions sitting with the Bank of Ghana stood at GHS12.79 billion in November 30, 2019, as against GHS14.78 billion in October 2019.

The capital and reserves at the end of November 2019 was, however, negative GHS161.21 million. It had been positive until August 2019 when it assumed a negative number.

Capital and reserves is the difference between total assets and total liabilities in the balance sheet. It represents the equity interest of the owners in an entity and is the amount available to absorb unidentified losses.

According to the November 2019 Banking Sector Report, total deposits increased to GHS78.90 billion by GHS11.51 billion in October 2019 from GHS67.38 billion in October 2018, pointing to renewed confidence in the banking sector following the reforms.

Domestic deposits grew at the same pace as total deposits to GHS78.50 billion in October 2019 from GHS67.04 billion in the previous year, while deposits of non-residents remained small at GHS397.70 million from GHS342.10 million.

The foreign currency component (denominated in Ghana Cedis) of total deposits, on the other hand, recorded a higher growth of 22.4 percent in October 2019 to GHS20.79 billion compared with a growth of 13.7 percent a year ago.