BoG To Pump In More Dollars To Keep Cedi Stable

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Governor of the Bank of Ghana Dr. Kofi Wampah has indicated he is prepared to pump in more dollars, if it becomes necessary, to sustain the cedi’s appreciation.

The local currency has appreciated by some 24 percent against the dollar over the past two weeks.

This was mainly due to the central bank’s intervention in the forex market.

Answering questions after a Monetary Policy Committee meeting Wednesday, the Governor revealed that the central bank intends to keep the cedi stable with the infusion of more foreign currency into the market together with other monetary and fiscal measures.

“I will just advice speculators or those who want to take advantage of it [cedi fall] to be careful because…last year the same thing happened and it’s happening [again] now”, Dr Wampah said.

He also confirmed that there had been a deliberate policy to limit the amount of cedis in circulation, which resulted in some serious credit squeeze.

After months of continued depreciation which negatively affected economic activities in the country and the prices of goods and services, the cedi has seen some appreciation over the last few days.

The cedi which was sold for some 4.3 cedis a dollar in June is now selling between 3.2- 3.7 cedis to a dollar.

The BoG had been pushing in some 20 million dollars daily as a temporary measure to keep the local currency stable.

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