President Nana Akufo-Addo has described as “unacceptable”, the current depreciation of the Ghana cedi against the US dollar and other currencies of international trade.
“Other steps will be taken, in particular, to deal with the unacceptable depreciation of the cedi”, the President promised in an address at the opening of the 12th Biennial and 50th Golden Conference of the Methodist Church of Ghana in Winneba on Thursday, 18 August 2022.
Also, he said: “Reining in inflation, by bringing down food prices, is a major preoccupation of the government, and this season’s emerging, successful harvest will assist us achieve this objective, together with other policies that are being put in place”.
The President said he believes God to turn things around.
“I urge all of you gathered here to have that same belief that the fortunes of Ghana under the Presidency of Nana Addo Dankwa Akufo-Addo will be restored. The Battle is the Lord’s,” he declared, adding: “Above all, I continue to have an abiding faith in God to help turn the fortunes of our nation around, accompanied by appropriate policies, determination and hard work on our part”.
He noted: “Every policy initiative, whether it is the free senior high school policy, Planting for Food and Jobs or the One-District, One-Factory initiative, has been implemented with the well-being of the Ghanaian at heart,” he said.
“I am fully aware that these are very difficult times for us in Ghana, just as they are for most people in the world, cold comfort as that may be,” he said.
Bank of Ghana interventions to stabilise the cedi
1. Once disbursed, the recently approved USD750,000,000 Afriexim loan facility by Parliament, is expected to boost Ghana’s forex position.
2. The Cocoa Loan is expected in the last quarter of the year. This facility will also help provide more foreign currency to help address the cedi depreciation.
3. Gold Purchase Programme to increase foreign exchange reserves.
4. Special Foreign Exchange Auction for the Bulk Distribution Companies (BDCs) to help with the importation of petroleum products.
5. Bank of Ghana is entering into a cooperation agreement with the mining companies to provide BOG with the opportunity to buy gold as when it becomes available.
6. The Bank of Ghana is supporting the banking sector with foreign currency liquidity to help meet the demand for external payments.
7. The IMF programme once finalised, will also go a long way to help restore confidence in the economy and drive portfolio flows. These measures will go a long way to increase the foreign exchange reserve position of the Central Bank.