How BoG Intends To Deal With Cedi Depreciation

The Central bank of Ghana has outlined seven measures to solve the steep fall of the Ghana cedi to the United States dollar.

In a response to the Graphic online on the fall of the cedi, the Bank of Ghana (BoG) cited the strength of the dollar to the pound sterling and euro; the exit of foreign investors from Ghana’s bond market due to poor credit ratings; rise in crude oil prices; and Ghana’s inaccessibility to the Eurobond market, for the fall of the cedi.

The BoG says in dealing with the menace, it has instituted a programme to purchase gold as a way of increasing the country’s foreign exchange reserves which as of the end of June was US$7 billion.

It is also undertaking a Special Foreign Exchange Auction for the Bulk Distribution Companies (BDCs) to help with the importation of petroleum products.

Additionally, it said the Bank of Ghana is supporting the banking sector with foreign currency liquidity to help meet demand for external payments.

BoG further pointed out that the recently approved USD750,000,000 Afrexim loan facility by Parliament will boost the foreign exchange position of the country once disbursed.

Another loan the Central Bank is confident will shore up the strength of the cedi is the Cocoa Loan which is expected in the last quarter of this year.

In restoring investor confidence in the country, the Bank said the IMF programme will make a massive contribution in the short term.

The cedi is currently trading at GHc9.4 to a dollar

Source: opemsuo.com/Hajara Fuseini