Bank of Ghana Governor, Dr Ernest Addison
The Bank of Ghana (BoG) has sufficient reserves to meet the forex needs of the country as the Christmas season approaches, according to BoG Governor, Dr Ernest Addison. The BoG is well-placed to intervene in the forex market if required, given the strong demand for forex as traders import goods to stock up for the Christmas season and exporters seek forex, which often puts pressure on the cedi.
During a press briefing following the Monetary Policy Committee (MPC) meeting in Accra, Dr Addison addressed questions about the adequacy of BoG’s foreign exchange reserves to support the market and stabilize the cedi. The recent MPC saw a reduction in the monetary policy rate by 200 basis points to 27 per cent, reflecting robust growth, declining inflation, and a positive external position.
Dr Addison assured that BoG has sufficient reserves and the capacity to intervene in the market if needed. He also highlighted the country’s improving external payment position, driven by higher trade surplus, strong reserves build-up, and external financial inflows from IMF and the World Bank. This has led to an improved balance of payments position, with a surplus projected by the end of the year.
The economy is showing signs of rapid recovery, with real GDP growing by 6.9 per cent in the second quarter of 2024, compared to 2.5 per cent in the same quarter of 2023. Dr Addison noted that inflation has been easing, expected to reach the target range of 13-17 per cent for the year and gradually move towards the medium-term target of 6-10 per cent by the end of 2025, barring any unforeseen shocks.
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