- The Bank of Ghana is set to inject $800 million into the economy
- This is to help the cedi, especially against the dollar
- The move will increase the net international reserve (NIR) to about $4 billion
The Bank of Ghana (BoG) has revealed plans of adding a minimum of $800 million to the country’s reserves.
The reason behind the decision, YEN.com.gh has learnt, is to ensure that the cedi is stabilized against major trading currencies, especially the dollar.
In an interview, the head of financial markets at the BoG, Stephen Opata, stated that more dollars in the system would increase the net international reserve (NIR) to about $4 billion.
This, he explained, will increase confidence in the system and help stabilize the cedi’s freefall.
Graphic.com.gh reports that since January 2019, information available from the BoG shows that the cedi lost about 3.6% of its value to the dollar.
This is because the international investor community sold some of their investments in local securities and moved their funds overseas, partly causing the cedi to slide.
That caused some apprehension among the business community, prompting various private sector associations to urge the central bank to find a solution to the depreciation to help abate the impact on their operations.
Opata explained that BoG research indicated that the recent depreciation would normalize in days, as it was not caused by weak fundamentals and external shocks but by local sentiments that they intended to correct with time.
I don't do secular music. I do good music with good themes: Kuami Eugene - Star Gist| #Yencomgh