BoG Governor affirms Central Bank’s efforts to stem Cedi depreciation
Dr. Ernest Addison, the Governor of the Bank of Ghana, has emphasized the commitment of the Central Bank to stabilize the Ghanaian cedi against major foreign currencies such as the US dollar.
He highlighted the importance of exchange rate stability for maintaining downward pressure on inflation, noting that stability in the exchange rate is integral to the disinflation process.
Speaking at the FirstBank Ghana Business Dinner, Dr. Addison reassured stakeholders that efforts are underway to ensure exchange rate stability, indicating that every bank has received some foreign exchange from the central bank.
He acknowledged the surge in demand for the dollar and other major currencies, which has led to recent depreciation of the cedi.
“I am sure you know that the exchange rate stability will be sustained. It is not possible to continue the disinflation process with exchange rates that are not stable, so implicit in that statement is to give assurance to you all about the stability of the cedi going forward.
“I am aware that every bank has got a little bit of foreign exchange from the central bank. Averagely there are one or two banks who didn’t need it but most banks needed it,” he remarked.
The Governor further underscored the Central Bank’s vigilance in monitoring developments in the foreign exchange market.
The current exchange rates are approximately GH¢14.50 to one US dollar and GH¢18.00 to one British pound in the retail market.
Despite the fluctuations in the local currency, Dr. Addison’s remarks convey a sense of confidence in the Central Bank’s ability to maintain stability in the currency markets.
