The Governor of the Financial institution of Ghana, Dr Johnson Asiama, has dismissed hypothesis that the central financial institution is injecting giant volumes of US {dollars} into the overseas trade market to stabilise the Ghanaian cedi.
The cedi has just lately skilled considered one of its most sustained intervals of stability in years. Since December 2024, the foreign money has not solely held its floor however has additionally appreciated barely in opposition to the US greenback in current days.
Talking on the enterprise version of PM Specific with George Wiafe, Dr Asiama attributed the cedi’s current beneficial properties to robust inflows and ongoing reforms within the overseas trade market.
“So the steadiness you’re seeing now, it isn’t as a result of we’re intervening out there. It is not as a result of we’re promoting reserves for stability. No,” Dr Asiama mentioned.
He famous that the central financial institution’s reserves programme is definitely bettering. “Keep in mind our reserves programme is definitely going up, you recognize, by the day. We’re constructing increasingly more reserves. All that we’re doing is strengthening, you recognize, the surge in inflows.”
Dr Asiama pointed to various overseas trade market reforms presently being carried out, which he believes are contributing to the cedi’s resilience.
“It’s the mixture of all these components that you’re seeing. And so, as long as we maintain that anchor, we’ll proceed to see stability.”He mentioned.
He additionally clarified the Financial institution’s place on foreign money stability. “After we say stability, it doesn’t suggest the cedi needs to be fastened. It doesn’t suggest that the cedi has to over-appreciate, as a result of that in itself is just not good for our exports. So in actual phrases, we’re observing the tendencies.”
Dr Asiama careworn that the Financial institution’s goal is to make sure the cedi stays aligned inside an inexpensive vary according to macroeconomic stability.
“We wish to ensure that the cedi is just not misaligned in actual phrases. It stays inside some type of band… one thing that’s applicable and according to macroeconomic stability.” He acknowledged.
He concluded with optimism, stating, “All I can let you know at this level is the times of extreme volatility of the cedi are actually coming to an finish.”
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