AGI Reports Improved Dollar Supply, Applauds Recent BoG FX Measures
The Association of Ghana Industries (AGI) has noted an improvement in the supply of foreign exchange to businesses, citing recent measures by the Bank of Ghana to enforce forex regulations and boost liquidity.
“Compared to the past, what we are experiencing right now is way better than a month ago,” said Humphrey Ayim-Darke, AGI president, in an interview on PM Express Business Edition.
He added that the cedi had shown signs of stability over the past week, but urged the central bank to do more to sustain the trend. “It is clear that the recent forex enforcement measures and guidelines are actually working,” Ayim-Darke said, while cautioning that some of the measures had created challenges for certain industries.
The AGI president also criticised partial non-compliance with a directive requiring shipping lines and port agencies to align their rates with those quoted by the central bank and commercial lenders. “I think the Bank of Ghana and the Ghana Shipping Authority must move to crack the whip,” he said, calling for stricter regulatory enforcement.
Market data show the cedi’s rate of depreciation slowed slightly last week after sustained pressure against the dollar in August. Analysts attribute the moderation to tighter enforcement of forex rules and new central bank measures to increase inflows.
This week the Bank of Ghana sold one of its highest weekly amounts of dollars via a seven-day forward auction, offering $300mn. Commercial banks took up $243mn at rates between GHS12.15 and GHS12.40 to the dollar.
Philip Abradu-Otoo, the Bank’s director of research, said measures requiring mining companies to auction their foreign currency earnings through local banks had already eased liquidity constraints. The central bank has expressed optimism that pressures on the cedi will continue to ease in the coming weeks.
