This thesis deals with the development of the monetary
and financial system of Ghana during the period 1950-64 and
was conceived of as a sequel to "Money and Banking in British Colonial Africa" by W. T. Newlyn and D. C. Rowan.
The period itself saw considerable changes in political
and economic conditions and aspirations which left their
mark on the financial system. Emphasis has generally been
placed on the major changes and the work is largely a mixture of historical survey and analysis.
The Introductory Chapter deals with the general framework
and characteristics of the economy laying emphasis on the
changes and modifications which provide the background to
some basic developments in monetary and financial practices.
Chapters One to Three deal with the 'monetary institutions -
the commercial banks and the Currency Board supplanted in 1957 by the Central Bank. Chapter One deals with the commercial banking system. In Chapter Two are examined the functioning of the West African Currency Board, a review of discussions involving the change to a Central Bank and the evolution of Central Banking constitutional arrangements up to 1964. Chapter Three examines the structural development of the Central Bank as exemplified by the gradual gravitation of the Bank into the general economic administration of the nation and as reflected in important movements in the Bank's assets and liabilities structure.
Chapters Tour to Six deal respectively with non-bank
financial institutions extant at the end of 1964, a general
appraisal of the prospects for the development of money and
capital markets and a survey of the performances of various
special credit schemes organised under governmental auspices. Included in Chapter Six is a survey of Agricultural Credit schemes and general related problems dating back much earlier than 1950.
The final Chapter (Seven) is a theoretical analysis of
the relationship between the balance of payments, domestic
credit operations and the money supply. In this is generally
undertaken a review of the literature on these and other
questions relcted thereto. Section D of Chapter Seven
examines the scope for monetary policy which only took active form in the last year of the period under review. The
general argument put forward is that the greatest scope in
the immediate future lay in the use of selective reserve
requirements as actually employed in April 1964. First the
literature on the various bases for computing reserve requirement are reviewed with the special peculiarities of Ghana for appraisal. This is followed by a brief analysis of the credit control regulations actually adopted.
A separate chapter on summary and conclusions has not
boon incorporated because in a broad study of this kind it
would merely lead to repetitions of various ideas and
conclusions stated in the text.
The institutional arrangements described in the thesis are based on interviews and discussions hold with representatives of the institutions concerned, publications of the Bank of Ghana and the Government Statistician's office and personal knowledge.
Statistical data derive mainly from publications of the
Bank of Ghana and the Government Statistician. Due to
frequent changes in the basis of statistical data as well as
revisions it has not been possible in all cases to present
data comparable in every sense and covering the whole period
under review. As far as practicable revised data have been
used sometimes at the expense of presenting figures for the
whole review period.