The Bank of Ghana has called out persons and groups that continue to negatively speculate about the Ghana Cedi with the hope that the local currency will continue to depreciate against the US Dollar.
While data from the Central Bank shows that the Cedi had depreciated by about 15%, in the first 3 months of this year, checks at some forex bureaus show that the Cedi depreciated by as much as about 30% from the beginning of the year till March 24, 2022.
During that period the local currency went from a low of GHC 6.67 to a Dollar at the start of the year, to as high as GHC 8.50 to a Dollar within the past few days.
As part of efforts to check the situation Government has announced that it will among other things pump an amount of $2 billion into the economy to strengthen the Ghana Cedi.
Governor of the Central Bank, Dr. Ernest Addison also stated at the last Monetary Policy Press conference that as part of medium to long-term measures to help the local currency, government was also looking to review the retention agreements with oil and gas companies in the country.
“Government has been discussing with us the matter of the retention agreements we have with the Oil drilling companies. This is to help improve the foreign exchange earning capacity of the economy as a whole. So yes we are quite confident that the measures we are putting in place will help stabilize the Cedi.”
“We think that the exchange rate has overshot its long-run level, and when that happens it can only appreciate. So those that speculating on the Cedi should be aware that the Central Bank thinks the Cedi has over-shot its medium term levels and that it can only appreciate in the next few quarters. So I’m not sure you’re going to win speculating against the Cedi,” he added.