BoG fully equipped to handle Christmas pressure on the cedi – Governor

The Governor of the Bank of Ghana, Dr. Ernest Addison has noted that his outfit is well equipped to handle any pressures that may arise from the Christmas festivities in December.

Usually, there is significant pressure on the local currency during the Christmas season as importation rates often surge thereby impacting on the cedi's performance.

Governor Addison however said businesses should rest assured that there will be enough dollar reserves to cushion them during the period.

“I think that businesses have to trust the Bank of Ghana when we say that we have enough reserves”, Dr. Addison said during an interview at the Monetary Policy Committee Press Conference on September 27, 2024.

He added that “The market should be rest assured that we have the ability to step in to support the demands coming from businesses and individuals and there is no need for them to panic.”

The BoG revealed that its International Reserves have increased by US$1.58 billion over the past months to reach US$7.50 billion ending August 2024.

This is equivalent to 3.4 months of import cover.

Net International Reserves on the other hand has also increased by US$1.73 billion to US$4.92 billion at the end-August 2024.

In the last few months, the cedi has seen some form of stability against major trading currencies.

“This is due to tight monetary policy stance and improved forex liquidity support,” the Governor explained.

“From the beginning of the year to September 25, 2024, the Ghana cedi depreciated by 24.3 percent against the U.S dollar. In the second half of the year the cedi has witnessed a slower pace of depreciation of 7.1 percent,” Dr Addison mentioned.

SSD/MA

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