The Governor of the Bank of Ghana (BoG) has said that it is normal for the Cedi to experience marginal depreciation or appreciation.
He says the framework that Ghana has is a managed float, not a fixed exchange regime.
Addressing the 130th Monetary Policy Committee (MPC) press conference in Accra on Wednesday, May 20, Dr Asiama said the BG is concerned about excessive volatility.
“We have always said that the framework that we have is a managed float; it is not a fixed exchange rate regime, so the Cedi is expected to move on a daily basis. expect the cedi to move; it can depreciate, it can appreciate. Our concern is to avoid excessive volatility,” he said.
He added, “So we haven’t announced that we are keeping a fixed exchange rate, but it is okay for the cedi to be flexible. It is true we have observed a surge in demand in recent weeks, but remember the times we are in. “
Dr Asiama further stated that the geopolitical disturbances out there have an impact in terms of oil prices and trade distortions.
What that means is that the same volume of crude oil is costing twice or more by way of foreign exchange,” he said.
“So you can imagine why there is great demand for FX, therefore summing up the depreciation pressure. on the cedi,” he said.
