Cedi depreciation: 5 Things Akufo-Addo’s Is Doing To Strengthen Local Currency Against Dollar

• The president has announced a raft of strategies to stop the cedi from falling rapidly against the dollar and other trading currencies
• The president said during his national address on the economic that there are firm plans to release more dollars into the system
• He also said a new legal and regulatory framework will soon be introduced to keep forex in Ghana

The president has expressed confidence that some firm steps his economic management team is taking to stop the depreciation of the cedi will bring results.

Nana Akufo-Addo told the business community in Ghana during an address to the nation on Sunday, October 30 that the country is not the only country taking a hit from global events.

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He described Ghana’s situation as a “economic crisis”, noting that the steep fall of the cedi is a major contributor.

President Akufo-Addo announced five firm strategies that have been taken to restore order in the forex markets. He said already, the strategies are beginning to bring some calm.

The president announced the following:

1. Enhanced supervisory action by the Bank of Ghana in the forex bureau markets and the black market to flush out illegal operators, as well as ensuring that those permitted to operate legally abide by the market rules. Already some forex bureaus have had their licenses revoked, and this exercise will continue until complete order is restored in the sector;
2. Fresh inflows of dollars are providing liquidity to the foreign exchange market, and addressing the pipeline demand;
3. The Bank of Ghana has given its full commitment to the commercial banks to provide liquidity to ensure the wheels of the economy continue to run in a stabilized manner, till the IMF Programme kicks in and the financing assurances expected from other partners also come in;
4. Government is working with the Bank of Ghana and the oil producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange earned from operations in Ghana are, initially, paid to banks domiciled in Ghana to help boost the domestic foreign exchange market; and
5. The Bank of Ghana will enhance its gold purchase programme.

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“I am confident that these immediate measures designed to change the structure of our balance of payment flows, sanitise the foreign exchange market to ensure that the banks and forex bureaus operate along international best practices, together with strengthened supervision, will go a long way to sanitize our foreign exchange market, and make it more resilient against external vulnerabilities going forward,” the president assured.

Akufo-Addo Appeals To Traders To Stop Slapping Huge Margins On Prices Of Goods In Address On Economic Crisis

In related story, YEN.com.gh reported that president Akufo-Addo has appealed to market women and other traders to relax the way the put huge margins on the prices of goods on the market.

During his address to the nation on measures his government is taking to tackle the "economic crisis" the president said it is important for the traders to be measured on their pricing decisions.

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He also praised suppliers and distributors of goods who have ensured that there is enough products on the market despite the uncertainties Read more:

Source: YEN.com.gh