{"id":605069,"date":"2019-04-04T18:30:09","date_gmt":"2019-04-04T18:30:09","guid":{"rendered":"
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The opposition National Democratic Congress (NDC) is insisting that the Bank of Ghana (BoG) used the country\u2019s foreign reserves to shore up the depreciating cedi.<\/span><\/p>\n

According to Ajumako-Enyan-Asiam Member of Parliament, Ato Forson, the figures on the BoG\u2019s website contradict the Vice President\u2019s presentation at the Town Hall Meeting meeting\u00a0on Wednesday. <\/span><\/p>\n

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The Minority Spokesperson on Finance\u00a0said the BoG figures show\u00a0clearly that Ghana\u2019s reserves were used to shore up the cedi.<\/span><\/p>\n

Displaying data from the BoG website, Mr Forson who is also a former deputy Finance Minister said \u201cas at December 2018 and January 2019, the Net International Reserves were GH<\/span>\u023b<\/span>\u00a03.8 billion\u2026from GH<\/span>\u023b<\/span>\u00a03.8 billion, it reduced to GH<\/span>\u023b<\/span>3.173 billion. <\/span><\/p>\n

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\u201cIt shows clearly that an amount of GH<\/span>\u023b<\/span>700 million and over was used for the purposes of intervening in the currency,\u201d he added.<\/span><\/p>\n

The beginning of 2019 was characterised by a sudden sharp depreciation of the cedi. Within a week, the cedi went up to close to 5.9 to the dollar.<\/span><\/span><\/span><\/p>\n

The cedi has, however, appreciated to about 5.2 as of Thursday.<\/span><\/span><\/p>\n

\"Dr<\/p>\n

Dr Mahamadu Bawumia at the Town Hall Meeting while disputing the NDC\u2019s claim said, the notion that the BoG used the reserves to reverse the cedi \u201cwould not be wise.\u201d\u00a0<\/span><\/span><\/span><\/p>\n

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\u201cThe reason for the sharp reversal of the cedi depreciation that we observed was that the market corrected itself. Investor sentiments, expectations, and uncertainties acknowledged that the fundamentals are much stronger than they suspected and even without the IMF fiscal and monetary discipline are assured.\u201d\u00a0<\/span><\/span><\/span><\/p>\n

Dr Bawumia added that the BoG could not have used the reserves because as part of the IMF requirements for the conclusion of its programme, the Central Bank had to increase its net international reserves by December 2018 and that was done.<\/span><\/span><\/span><\/p>\n

\u201cTo increase the net international reserves to about $800m, however, meant that the Bank of Ghana could not sell any foreign exchange in the market, they had to essentially hold their hands back and could not intervene in the market during this particular period,\u201d the Vice President added.<\/span><\/span><\/span><\/p>\n

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\"Bog<\/p>\n

The figures Mr Forson spoke to are marked with red<\/b><\/p>\n

But Mr Forson questioned why the reserves have reduced if it was not used to save the depreciating cedi.<\/span><\/span><\/span><\/p>\n

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\u201cIf he is saying he [Dr Bawumia] did not use the money for the purposes of intervention he should tell us where the money is.<\/span><\/span><\/span><\/p>\n

\u201cI know they used it for the purposes of intervention and data does not lie. He is actually lying to all of us and his credibility has now been brought to question,\u201d he said.<\/span><\/span><\/span>
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