Cedi depreciation: Bank of Ghana forms taskforce; bans display of forex rates at premisses, on social media

The Bank of Ghana has begun what critics describe as desperate measures to prevent further depreciation of the cedi.

It has banned the display or advertisement of exchange rate figures at the premises of forex bereaus (Bureau de change (BDC) operators), henceforth.

The directive which also affects sharing of same on social media platforms, is intended to curb speculation about the cedi’s performance against major trading currencies.

The move follows criticisms and protests by the Ghana Federation of Trades demanding a reverse of the free fall. As of the week ending May 26, 2024, the local currency was trading at GH¢15.50 to $1.
The Central Bank has subsequently established a task force to monitor all foreign exchange bureaus across the country to ensure strict compliance.

The task force, known as the Foreign Exchange Bureau Monitoring team, will ensure that stakeholders in the foreign exchange market adhere to the Central Bank’s directive.

Briefing the media on Monday, May 27, BoG Governor Dr. Ernest Addison stated that the task force will also work to eliminate illegal operators from the foreign exchange market.

“The Bank is fully aware of the operations of illegal operators in the foreign exchange market and is working with the Financial Intelligence Centre to sanitise the foreign exchange market. The Foreign Exchange Bureaux Monitoring will be stepped up to ensure compliance with their regulatory framework,” Dr Addison said.

He added “In line with this, all foreign exchange bureaus advertising rates outside their premises and on social media platforms must immediately desist from the practice. The Bank has set up a task force to monitor all the foreign exchange bureaux to ensure compliance,”.

The Central Bank believes that the depreciation of the cedi and recent developments in the foreign exchange market have been largely driven by sentiments and public statements.

“We urge all to manage pronouncements which weaken confidence in the local economy,” Dr Addison urged.

Leave a Reply

Your email address will not be published. Required fields are marked *