Cedi Depreciation: BoG Announces End To Forex Support For Imports Of Rice And Non-Critical Goods

• The Bank of Ghana has moved to stabilise the cedi with a firm decision to stop providing forex support for the importation of non-critical goods
• The central bank said FX support for rice, vegetable oil, poultry, toothpicks and other such items would cease
• The move has been hailed as a step in the right direction to reduce demand of dollars which puts pressure on the cedi

The central bank of Ghana has announced that it will no longer provide foreign exchange support for non-critical goods, to hold depreciation of the cedi.

The Bank of Ghana said forex support for the importation of rice, toothpicks poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods in Ghana has ceased.

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According to a report by Asaase News, the BoG made the disclosure via an electronic message to commercial banks in Ghana.

The BoG said the move is “in accordance with the president’s directive issued at his recent address to the nation on the Ghanaian economy, on Sunday 30 October, 2022.”

Meanwhile, the move has been hailed by the Chamber of Petroleum Consumers Ghana (COPEC-GH).

Executive secretary of the petroleum chamber Duncan Amoah has told YEN.com.gh that the decision by the Bank of Ghana should have come a bit earlier.

"I think this is a good move. COPEC-GH has said in the past that the Bank of Ghana must only provide forex support for petroleum products, pharmaceuticals and critical goods to reduce the demand for dollars which puts pressure on the cedi. So this is a very good move," Duncan Amoah said.

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Cedi Depreciation: Cedi Falls Twice In One Day As $1 Sells for Almost GH¢14

Meanwhile, YEN.com.gh has reported in a separate story that the cedi slumped heavily within 24 hours against the dollar on October 20, to sell at about GH¢13.75 to $1 at forex bureaus.

A few hours earlier $1 sold for almost the forex bureaus in Accra for between GH¢12.50 and GH¢12.95, representing over 6% depreciation within three days, from October 17 to October 19, 2022.

The dollar is not the only foreign currency that the cedi is falling against. It is also depreciating faster than the Pound Sterling and the Euro.

Source: YEN.com.gh