Tag Archives: Cedi

Busines, News

Gov’t implementing short-term measures to stabilize Cedi – Dep. Finance Minister

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Deputy Minister for Finance, Dr. Stephen Amoah has disclosed that the government has put in place a set of short-term strategies aimed at stabilizing the country’s currency.

The cedi has seen persistent depreciation against the US dollar and major trading currencies in the past few days, triggering agitations among traders and importers in the country.

But Dr Amoah is convinced the Finance Minister, Dr. Mohammed Amin Adam, has formulated some policies targeted at taming the the rate at which the dollar and other currencies are appreciating against the cedi.

While Dr. Amoah did not disclose the specific measures being put in place, he highlighted the critical role of citizen cooperation in reducing imports, which he indicated is essential for the long-term stability of the cedi.

“Minister Dr. Mohammed Amin Adam and the finance team have made plans and arrangements to allocate sufficient sums of money coming into the country to ensure the dollar against the cedi is more stable,” Dr. Amoah said on Onua FM’s Yen Nsempa programme.

He highlighted that it is necessary for Ghanaians to curtail their dependency on imported goods, particularly agricultural products, to strengthen the cedi.

“We need to reduce the number of goods we import into this country. Obviously, import of all agricultural products need to stop,” Dr. Amoah added.

He attributed the weakening of the cedi to the Ghanaian preference for foreign goods, which exacerbates the demand for the US dollar.

“As a country, we face the problem of preference for goods of the same liquidity and risk factors. Everything we need and use, we import, so the demand and supply of this is weakening the cedi.

“This is a problem because that means we will demand more of the dollar,” Dr. Amoah explained.

He warned that this “nonstop cycle” leaves the cedi with “no fighting chance.”

 

Source: Myxyzonline.com

Busines, News

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

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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.

Busines, News

Cedi weakens by 1.22 per cent; one dollar going for ¢12.30

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The cedi weakened 1.22% to the US dollar in the retail market last week, following depreciation pressures.

It also lost 0.65% to the pound and 0.19% against the euro on the retail market, despite Ghana’s inflation cooling to 23.2% in December 2023.

Though the Central Bank auctioned 20 million dollars for the Bulk Oil Distribution Companies in its first sale for 2024, it failed to tame the persistent corporate demand.

The cedi closed trades on the retail market or the forex bureaus at GH¢12.33/$ against GH¢12.18/$ the previous week.

However, many analysts believe the expected $600 million inflows from the International Monetary Fund (IMF) after its board approval of the first review of Ghana’s programme this Friday, January 19, 2024, should help improve market sentiments.

This will consequently shore up foreign exchange reserves and strengthen supply-side intervention.

Government last Friday, January 12, 2024, reached debt restructuring agreements with its official creditors, a move seen by many as a step in Ghana’s economic recovery.

So far this year, the local currency has lost about 1.50% in value to the dollar in the retail market.

 

Source: Myjoyonline.com