BoG has not spent any reserves to stabilize the Cedi – Bawumia

Company News of Thursday, April 4, 2019

Source: kasapafmonline.com

2019-04-04

Vice President Mahamudu Bawumia rejected accusations that the Bank of Ghana used its reserves to revive the CDIC when it depreciated against certain currencies, including the dollar.

According to him, "some people have misunderstood the obligation imposed by the International Monetary Fund (IMF) to build reserves of some 800 million dollars, which would imply that the Bank has used 800 million dollars to reverse the depreciation of the Cedi ".

Addressing a public meeting at the College of Physicians and Surgeons of Accra on Wednesday, April 3, 2019, Vice President Dr. Bawumia, head of the government's economic management team, said that if the Bank of Ghana had done it "Would not be wise."

"The reason for the strong reversal of the cedi depreciation we observed is that the market is corrected on its own. The sentiments, expectations and uncertainties of investors have recognized that the fundamentals were much stronger than they expected and that even without the IMF's fiscal and monetary discipline, they are badured.

Mr. Bawumia added, "The reversal of the depreciation that has taken place corroborates the fact that fundamentals are really strong. It should be remembered, ladies and gentlemen, that because of the weakness of the fundamentals in 2014, the NDC government at the time had to seek an IMF bailout. The difference today is glaring and blatant because our fundamentals are strong. Ghana only came out of the IMF program yesterday. "

At the beginning of March, the Cedi fell sharply against international currencies, particularly the dollar, at around 5%, to around 5.90 GH ¢. However, it started to appreciate slightly against the dollar. As of today, April 3, the Cedi is trading at 5.36850 against a dollar.