Matilda Asante-Asiedu
The Bank of Ghana (BoG) has urged businesses and investors to make financial decisions based on prevailing market conditions rather than speculating against the Cedi during transactions.
Speaking at the Money Summit in Accra on Tuesday, the Second Deputy Governor of the BoG, Matilda Asante-Asiedu, said the central bank is continuously working to sustain recent gains in exchange rate stability and warned that speculation on the currency could undermine confidence in the foreign exchange market.
“The fundamentals of this economy do not reward speculation against our currency. I urge every actor, because we’ve seen that semblance in the market, whether you’re a bank, an importer, an exporter, or an investor, to transact based on genuine and present needs, not out of fear or panic. As you have heard, our reserves continue to build, and they are there as buffers to help us support this economy,” she said.
The Deputy Governor noted that recent macroeconomic indicators have strengthened the Cedi and restored stability, marking an important opportunity for businesses to support and sustain these gains.
“A currency is a promise. Investors are drawn to markets where systems are reliable, regulations are predictable, and trust is firmly established. Trust is what turns a good year into a credible decade. Capital follows trust. When trust is present, the risk premium falls, the cost of capital reduces, and money becomes patient – willing to fund a five-year factory or a full crop cycle rather than fleeing at the first tremor,” she stated.
She said the central bank would continue to accumulate reserves towards a durable floor of six months of import cover and press ahead with the Ghana Gold Reserve Accumulation Programme (GGRAP) to achieve its medium-term target of 15 months of import cover.
According to her, these buffers will help the economy absorb shocks without panic, noting that the nation’s reserves have remained strong and the Cedi has stayed largely resilient despite recent oil market volatility and geopolitical turbulence.
“We are coordinating a financial sector-wide agenda to pool and structure the long-term savings we already hold such as in pensions, in our capital markets, in remittances, and direct them towards productive, patient investment at home,” the Deputy Governor added.
By Ebenezer K. Amponsah