The Bank of Ghana (BoG) has reaffirmed its commitment to stabilising the Cedi’s exchange rate amid its rapid depreciation against the dollar. In a press release issued by the Monetary Policy Committee on Monday, May 27, the BoG assured that it has sufficient foreign exchange reserves to support the market.
Advertisement
The BoG cautioned economic agents against speculative purchases, warning that such actions could lead to economic losses once the market corrects itself. “The Bank of Ghana remains fully committed to providing stability in the exchange rate for the cedi. The Bank has enough foreign exchange reserves to support the market, and economic agents should stop engaging in speculative purchases as they will suffer economic losses when the correction occurs,” the BoG stated.
Advertisement
The central bank acknowledged that the exchange rate has come under pressure recently, especially in the forex bureaux market. This pressure has been attributed to several factors, including increased demand for higher imports, energy sector payments, and uncertainties surrounding debt restructuring negotiations with external creditors.
“The pressure in the foreign exchange market reflected increased demand for higher imports, energy sector payments, and uncertainty surrounding the progress of debt restructuring negotiations with external creditors,” the BoG added.
The BoG indicated that these conditions have influenced market sentiments and led to additional pressures on the cedi. Despite these challenges, the bank emphasized its resolve to maintain stability and confidence in the cedi.
Leave a Reply