Banking Expert Supports BoG’s $1.15 Billion Forex Intervention to Stabilize Cedi-GHANA
Ghana’s local currency, the cedi, is set to receive a timely boost as the Bank of Ghana (BoG) injects $1.15 billion into the foreign exchange market under its Domestic Gold Purchase Programme. Banking consultant Dr. Richmond Atuahene has expressed strong support for the move, describing it as a necessary step to stabilize the cedi and manage rising inflation pressures.
The Central Bank, led by Governor Dr. Johnson Pandit Asiama, announced that the intervention will involve selling U.S. dollars on a spot basis through twice-weekly, price-competitive auctions accessible to all licensed banks. The initiative is aimed at increasing forex liquidity, strengthening market confidence, and providing transparent access to foreign exchange for businesses and consumers alike.
Dr. Atuahene, speaking to Citi Business News, emphasized the importance of leveraging Ghana’s reserve position to protect the local currency. “When you have enough reserves, intervening in the market to support the cedi against international currencies is crucial. Higher inflation leads to cedi depreciation, which creates more economic challenges,” he explained, adding his full backing for the Governor’s decision.
The consultant also addressed concerns that the Bank of Ghana might be overstepping in the forex market. He argued that interventions are a standard practice worldwide, citing similar measures in the UK and Europe. “Market interventions depend on a country’s reserve capacity, and Ghana’s action is consistent with global practices,” he said.
Economists say that with consistent forex support and prudent monetary policy, such interventions can help stabilize the cedi, curb inflation, and restore investor confidence. The BoG’s latest move signals a proactive approach to safeguarding Ghana’s currency amid ongoing global economic pressures.
source: citi newsroom