The Bank of Ghana (BoG) has attributed the cedis’ recent gains to new set of monetary measures it has instituted.
According to the Director of Financial Markets at the Bank of Ghana, Stephen Opata, the cedi’s performance can be linked to the BoG’s decision to restrict foreign exchange support to some essential commodities like petroleum products, as well as medical and pharmaceutical products.
He added that the cedi’s gains can also be attributed to the prudent management of liquidity in the financial system.
“We have also seen that Monetary Policy has been tightened, coming on the back of recent increases in the policy rate to 27 percent. This has also contributed to the cedi’s good run”, he added.
He noted that “the continuous hike in the policy rate will also ensure that excess cedis cannot be used to purchase government bonds and other securities, despite current concerns with the proposed debt exchange programme”.
Mr. Opata is of the view that these could be some of the major reasons that have contributed to the cedi’s stability against the dollar over the past three weeks.
