One of the main causes of the banking crisis in Ghana in the period $2017-2019$ is poor liquidity management.

$$ How did the poor liquidity management occur in most of the collapsed banks? What caused it$?$

$$ What strategies did the Bank of Ghana $($BoG$)$ take to revive the banks and enhance their liquidity?

$$ Were the strategies employed by BoG successful?

$$ What went wrong on the part of the BoG?

$$ What went wrong on the part of the distressed banks after receiving help from BoG?

$$ What liquidity management advice will you give as a student of Treasury Management to banks to avoid similar crises in the future?

Note:

$1.$ Detailed essay with specific examples and citations required

$2.$ Main body should not be less than three pages $($Excluding list of reference$).$ Students can write beyond three pages but should not be voluminous without substance

$3.$ List of references cited in the main body of the work should be provided at the end of the work. APA style should be used.

$4.$ Reproduced works of other students will not be accepted. Independent work required. Plagiarised works will not be accepted.

$5.$ Font type: Times new roman, Font size: $12,$ Spacing: $1\mathrm{.}5,$ Margins: $1$cm at all margins

B$)$ Individual work

A Ghanaian company has recently imported raw materials from the USA and has been invoiced for US$ $720,000,$ payable in three months$$ time. In addition, it has also exported finished goods to South Africa and Australia. The South African customer has been invoiced for US$ $207,000,$ payable in three months$$ time and the Australian customer has been invoiced for A$ $885,000,$ payable in four months$$ time. Current spot and forward rates are as follows:

US$$/$Ghs

Spot $13\mathrm{.}832013\mathrm{.}8350$

$3$ Months Forward $13\mathrm{.}921013\mathrm{.}9260$

A$$/$Ghs

Spot $9\mathrm{.}12109\mathrm{.}1350$

$4$ Months Forward $9\mathrm{.}15209\mathrm{.}1560$

Current money market rates $($per annum$)$ are as follows:

US: $10\%$

Australia: $12\%$

Ghana: $25\%$

Show how the Ghanaian company can hedge its exposure to foreign exchange risk using

$($i$)$ the Forward Market

$($ii$)$ the Money Market