BoG to review its Forex Intervention measures used to stabilize the cedi

JOYBUSINESS has learnt the Bank of Ghana (BoG) is looking to overhaul its Forex intervention measures used to stabilize the cedi’s value. The measures include mainly the release of foreign currencies (mainly the dollar) onto the exchange market by the Bank of Ghana. That is, as and when the need arises to among other things meet the foreign currency needs of commercial banks and the country’s oil imports.

The central bank however now wants to strengthen its interventions by equally matching demand of foreign currency with supply. JOYBUSINES has also learnt the bank has set up a committee tasked with the proposition of other measures to support cedi from further decline.

The central bank over the past two weeks has more than doubled its intervention onto the market with nearly 450 million dollars. This is relatively high compared to a weekly average of 50 million dollars. The country’s gross international reserve as at the end of last year is nearly five billion dollars. This would cover more than three months of import cover of goods.

Meanwhile, the Bank of Ghana is projecting the cedi would stabilize appreciably by the end of this month as a result of its intervention measures implemented so far.