The Governor of the Bank of Ghana, Dr. Ernest Addison has noted that the depreciation of the cedi is due to the daily pressures on the Ghanaian economy.
According to him the Bank of Ghana cannot fix the issue of the depreciation of the cedi as it is beyond their control.
“It reflects the movement on a day-to-day basis. If there is additional demand for cedis the currency will be restricted. The Central Bank cannot fix the exchange rate, it depends on what transactions have taken place…like payments to contractors.” He made these known at the Public Accounts Committee Sittings yesterday.
According to him, the depreciation of the local currency is due to the day-to-day pressures on the Ghanaian economy.
Dr. Addison made this known when he appeared before the Public Accounts Committee of Parliament and said “It reflects the movement on a day-to-day basis. If there is additional demand for cedis the currency will be restricted. The Central Bank cannot fix the exchange rate, it depends on what transactions have taken place…like payments to contractors.”
He added “Typically that kind of payment can move the exchange rate because some of them immediately convert into foreign exchange. So the exchange really reflects a lot of day-to-day pressures in the economy,”
On his take for the gold for oil deal, Dr Addison noted that the policy will take away the pressure on the cedi by the cedi that comes from the private oil marketing companies and good for government policy.
The first consignment of the Gold for Oil Policy by the government to stem the increasing depreciation of the cedi against the major currencies has arrived at the Tema Port and discharged into the receptacles of Bulk Oil Storage and Transportation Company (BOST).
The 41,000 metric tonnes of petroleum products delivered by SCF YENISEI would be sold by BOST to bulk distributing companies (BDCs) around Ghana.
Valued at $40 million, it was brokered by the Economic Management Team led by Vice President Dr. Mahamudu Bawumia