Government to raise US$2 billion to sustain economy, support budget
Cedi depreciated by 15.8% as at May 18 – BoG
First Deputy Governor of the Bank of Ghana, Dr Maxwell Opoku Afari, has given an assurance that the central bank will not hesitate to implement additional measures aimed at stabilizing the Ghana Cedi.
The local currency, which was has been under pressure since the start of the year witnessed some level of appreciation after the central bank introduced certain macro-prudential measures which assisted in mopping up about GH¢7 billion out of circulation.
Despite this, the currency has in the last two weeks began to experience some level of sustained depreciation against the US dollar.
As at May 18, the Ghana Cedi depreciated by 15.8 percent against the US dollar.
In an interaction with Joy Business, Dr Opoku-Afari said the central bank is monitoring the situation and will quickly move to address further spikes in the Cedi’s performance which has been impacted by external factors and speculations.
“The Bank of Ghana is not targeting the Exchange Rate with their policies, but when the rate moves outside its band, we have to act quickly,” he is quoted to have said by Joy Business.
On May 23, the Bank of Ghana hiked the monetary policy rate by some 200 basis points from 17 to 19 percent – a move meant to stem rising inflation and address excess liquidity in circulation.
Meanwhile, government plans to raise some US$2 billion from a syndicated loan which will be injected into the economy, provide relief to the budget and balance of payments.
Dr. Maxwell Opoku-Afari, first Deputy BoG Governor