In a proactive measure to curb the cedi’s depreciation, the Bank of Ghana (BoG) is bolstering its foreign reserves to address rising forex demand anticipated during the upcoming festive season. This strategic move aims to stabilize the local currency, which is currently trading at around GHS 17 to the dollar, marking a 24.3% depreciation since the beginning of the year.
Bank of Ghana Governor, Dr. Ernest Addison, highlighted the importance of reserve strengthening to mitigate exchange rate volatility and foster economic stability amid ongoing pressures.
“Some are hoping the cedi recovers to GHS 10.00 to a dollar. These exchange rate and financial sector challenges reflect broader economic issues. However, we’re making progress, and our developments are consistent with those in other jurisdictions. Staying focused on implementing sound policies and building buffers will support our economic progress,” Dr. Addison stated.
He explained that the Bank’s approach balances reserve building with managed interventions to instill investor confidence and enhance economic stability. “We have $7 billion in forex reserves. Could I drive the dollar-cedi rate to GHS 10 tomorrow? Yes, but that would ignore longer-term effects. We’re taking a balanced approach to sustain the exchange rate, and we see hope for the currency’s appreciation,” he added.
Dr. Addison made these remarks during the launch of The Concise Law of Banking, authored by legal practitioner Afua Appiah-Adu and commissioned by the Institute for Law & Development (ILAD). The book serves as a practical guide to banking law, covering essentials like bank regulation, customer relationships, electronic payment systems, offshore banking, money laundering, and more, making it a valuable resource for students, banking practitioners, lawyers, and professionals.
