Bank of Ghana to Revive Local Currency

Bank of Ghana has indicated it will pump US$450million into the forex market during the first quarter in a bid to stabilise the local currency against the US dollar. This move comes immediately at a time where the cedi recorded its highest depreciation of 4% as against the US Dollar. Clearly, despite an earlier appreciation of the cedi, this recent depreciation is an indication of the high rise in the FX during the festive season; rising demand for international goods as against local goods, and speculation associated with the two currencies before, during and after the Christmas celebrations. In the midst of the coronavirus, economies are moving towards local production in line with its comparative advantage. Ghana is advised to produce more domestically and eat more from its own soils. The fundamental as it stands is good with a 14.5% current monetary policy rate (from 25.5% in Jan 2017); 12.6% inflation rate due to covid-19 (from a single digit) and a 12.1% for a 91-day treasury bill (all as at 13th Jan 2022), and these show that there is light at the end of the tunnel. Let's continue to support the current Akufo-Addo led government to deliver.