FLASHBACK: 'You will not win speculating against the Cedi' – BoG Governor to naysayers

The governor of the Bank of Ghana, Ernest Addison, assured that naysayers against the cedi will be shamed eventually.

Speaking at the 105th Monetary Policy Press conference, the Governor stated that the government was seeking 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.”

Read the full story originally published on March 28, 2022, by GhanaWeb

BoG advises against negative speculation about the Ghana Cedi

Data from the Central Bank shows that the Cedi had depreciated by about 15%

Cedi now selling at GH¢8.25

Governor of the Bank of Ghana, Dr. Ernest Addison, has warned against the negative speculation about the cedi’s depreciation.

He stated that naysayers who wish the cedi to depreciate further will not succeed as the government makes plans to inject some $2 billion dollars into the system to further reduce the rate of depreciation.

Speaking at the 105th Monetary Policy Press conference, the Governor stated that the government is seeking 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.

Meanwhile, data from the Central Bank shows that the Cedi had depreciated by about 15%, in the first 3 months of this year.

However, this data was different from that of forex bureaus whose data showed that the cedi has depreciated by about 30% from the beginning of the year till March 24, 2022.

The cedi depreciated to sell at an all-time high of GH¢ 8.50 to a Dollar but is currently selling at GH¢8.25.