The Bank of Ghana (BoG) has announced that it is implementing proactive strategies to strengthen its reserves to combat the cedi’s depreciation against major foreign currencies.
As the festive season approaches, the Central Bank expects an increase in foreign exchange demand, prompting this strategic initiative to stabilize the local currency.
At present, the cedi is trading at nearly GH¢ 17 per dollar, reflecting a substantial year-to-date depreciation of 24.3%.
In response to these challenges, the Bank of Ghana aims to instill confidence in both businesses and consumers by working towards greater stability for the cedi through enhanced reserves.
Dr. Ernest Addison, Governor of the Bank of Ghana, emphasized the necessity of bolstering reserves to manage fluctuations in the cedi’s value.
He noted that these measures are essential for ensuring economic stability and maintaining trust in the financial system.
“Some are praying that the cedi will recover to GHS 10.00 to a dollar. These are the problems in our economy, the issues about the exchange rate and financial sector issues. But I think the good news is that we are making progress because the developments we are seeing are not different from other jurisdictions.”
“So, we need to stay focused and implement the appropriate policies and build buffers to be able to support the progress we have made.”