The Governor of the Bank of Ghana, Dr. Ernest Addison, is cautioning currency speculators to desist from unmercenary currency speculation else they will leave to regret.
According to him, the currency market will soon correct itself and the implications of the corrections on speculators would be well understood.
“We have accumulated over $2 billion in foreign exchange reserves, surpassing even the three-year target ahead of schedule. This significant reserve build-up should be noted, alongside the fact that we have the capacity to manage the foreign exchange market effectively”, he responded to a question at the recent Monetary Policy Committee (MPC) presser.
“Given our progress, I urge those engaging in unnecessary currency speculation to reconsider, as there will be [market] correction and the implications of such corrections on speculators are well understood”, he mentioned.
He continued that all things being equal the expected $2.3 billion inflows will significantly strengthen the country’s reserve position and help contain the forex market pressures.
These inflows include $360 million from the International Monetary Fund, a $300 million the World Bank and the $850 million Cocoa Syndicated Loan.
The Ghana cedi has come under severe pressure since January 2024 despite the IMF-support programme.
It has so far lost more than 21% in value to the US dollar, ranking it among the four worst currencies in Africa in 2024. The other currencies are the Nigerian naira, Egyptian pound and the Lebanese pound.
It is presently selling at GH¢15.75 to the US dollar at the forex bureaus.
Credit: myjoyonline.com