We will not allow ‘black market’ to drive exchange rate market – BoG assures

The Bank of Ghana has assured it will not allow the ‘black market’ to drive the exchange rate market in the country.

According to the Governor, Dr. Ernest Addison, it will do everything possible within its remit to ensure that black market dealers do not dictate to the market.

He added that his outfit has also created a Twitter page, purposely to give updates on the daily exchange rate.

“I think we should try to understand what is going on in the foreign exchange market. We have decided to introduce a Twitter page with the daily exchange rate that will be released every morning by the Bank of Ghana. Because we do not want the black market to be driving exchange rates in this country. And, we are hoping that this alone will help clear a lot of noise on the exchange forum”.

“There have been all kinds of rumours about some conversions and foreign exchange balances into cedis. Definitely, nobody has even thought of any such measure, so we need to deal with such rumours with contempt because we are not looking at that sort of intervention at all”.

The Governor further said that “as we are all aware, we got the $750 million from the AfriExim Bank and I think today [October 26, 2022], we are supposed to receive the $790 million from the COCOBOD syndicated loan so the Central Bank has some liquidity”.

Enough liquidity available till IMF programme takes off

He also stressed that the Central Bank has enough liquidity to keep things relatively stable till the International Monetary Fund Programme kicks in and the financing assurances expected from other partners come in.

“I am aware of the recent developments in terms of liquidity in the banking sector. As I said, I took note of the advice from Washington on the financial stability issue that there has to be targeted liquidity support to preserve financial stability without undermining the inflation control objectives. So this is really the context we should have the discussion on all the complaints of we need liquidity and BoG not supplying liquidity.“Yesterday I met the CEOs and I have assured them that we will provide the necessary liquidity to ensure that we don’t have a system of a liquidity problem. But we do that within the context of keeping inflation low”.

Source: myjoyonline