The Central Bank Of Ghana has called for calm as it has introduced solutions to help strengthen the fall of the Ghanaian Cedi against the US dollar – being the major trading currency.
The Bank Of Ghana presented five major reasons for the torment of the local currency.
These are The Strength of the USA dollar, Investor reaction to Credit Rating Downgrade, Non-Roll of Maturing Bonds, The sharp rise in crude oil prices and its impact on the Oil Bill, and Loss of External Financing.
The solutions outlined to resolve these, according to the Bank Of Bank, are the “Gold Purchase Program to increase foreign exchange reserves;
Special Foreign Exchange Auction for the Bulk Distribution Company (BDCs) to help with the importation of petroleum products
The Bank of Ghana is entering into a cooperation agreement with the mining companies to provide BOG with the opportunity to buy gold when it becomes available.
The Bank of Ghana is supporting the banking sector with foreign currency liquidity to help meet the demand for external payments.
The recently approved USD750,000,000 Afriexim loan facility by Parliament, once disbursed, will boost the foreign exchange position of the country and help restore confidence.
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.
In the meanwhile, we expect that when the program is concluded, it 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, a statement issued by the BoG said.