[ad_1]
<! –
->
Dr. Ernest Addison, governor of the Bank of Ghana, has been firm in stating that the recent challenges to the cedi that have caused this prolonged upheaval are over.
Recent challenges with cedi and Bank of Ghana insurance
The cedi has experienced interesting developments in the last two months. In a week, the recovery was strong, but the trend was revised later, resulting in a lasting depreciation.
But Dr. Addison maintains that the challenge is now over, adding that the cedi would and should be relatively stable in the future: "We expect the low inflation that we have seen as well as the reduction of these feelings would surely help to stabilize the cedi. "
The governor also argued that the BoG now had a stronger reserve position allowing it to deal with short-term currency fluctuations and mitigate excessive volatilities, adding, "Yes, we have seen the cedi increase to 5.9 GCHA. [per dollar] and the last time I checked that the overshoot and peak had fallen to GH ¢ 5.1. This clearly shows that the local currency behaves appropriately. "
Did he ask if he was surprised by the recent blips? The governor maintained that he was not there. This is because these errors were not corroborated by the underlying fundamentals and he was therefore optimistic about the normalization of the situation, adding that "it tells you what you can do and then when the markets discover that they have formed the wrong perception, move to correct this misperception.
Cedis' business insurance and outlook
Regarding the outlook for the currency, Mr. Addison gave badurances for the maintenance of stability and said that there was no need to panic because the Central Bank had sufficient reserves and that she was able to deal with short-term problems.
The promise is based on the fact that "the government is currently implementing the right policies and that, from a balance of payments point of view, we have very good prospects for exports". Based on his badessment of the current situation, the governor stated that he did not see any major challenge.
Impact on the economy
It is thought that the immediate impact of a stable cedi could be on the rate of inflation, the cost of living and fuel prices. Petroleum marketing companies recently attributed the marginal increase in the price of petroleum products to the depreciation of the cedi in the first quarter of this year.
This trend is linked to the recent slight increase in the inflation rate, which stood at 9.3 for the month of March.
According to economic and financial data published by the Bank of Ghana on March 31, 2019, the Ghanaian Cedi depreciated by 5.18%.
[ad_2]
Source link
