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Bank of Ghana Says It Funded Entire Government Budget Gap

The Bank of Ghana said it financed the government’s entire budget deficit in the first quarter, measures that Fitch Ratings warned will fuel inflation and weaken Africa’s worst-performing currency.

“Because of shortfalling government revenue, all financing of the deficit came from the central bank,” Grace Akrofi, head of research, said by phone from Accra, the capital, yesterday. “The central bank is allowed to give a short-term advance to the government when there is a deficit.”