Ghana’s central bank raises dollar sales to support cedi

Business News of Wednesday, 24 June 2015

Source: Reuters

Dr Kofi Wampah Central BankDr Kofi Wampah, BoG Governor

Ghana’s central bank has increased its dollar sales in the interbank market to $20 million a day up from $14 million a week in a renewed bid to stabilise the cedi, its governor said on Wednesday.

Henry Kofi Wampah said the robust interbank intervention would continue and that he expected dollar inflows from donors, a Eurobond and cocoa loan to boost the central bank’s foreign exchange reserves.

“We have raised our intervention significantly over the past two weeks. This is going to continue and we will do more as and when necessary to ease pressure on the cedi,” he told Reuters.

Wampah said the bank has started receiving donor inflows and expects $500 million by the end of the third quarter.

“We expect to have a very healthy reserve position by the end of September,” he said.

The cedi weakened to a near record low against the dollar of 4.3900 at 0930 GMT, down nearly 24 percent since January, traders said on Wednesday.

Ghana, which exports cocoa, gold and oil, is implementing an aid deal with the International Monetary Fund (IMF) to restore fiscal stability. An IMF team is reviewing implentation of the deal ahead of the possible release of a second tranche of funds.