The Bank of Ghana (BoG) is increasing its reserves in order to combat the depreciation of the cedi against major foreign currencies. This is in preparation for an expected rise in demand for forex during the upcoming festive season.
The Central Bank’s decision is intended to provide confidence to businesses and consumers by guiding the local currency towards increased stability in light of current challenges.
Currently, the cedi’s value in the forex market is approximately GHS 17 per dollar, marking a depreciation of 24.3% so far this year.
However, Dr. Smith believes that it is still possible to find a solution to this problem through further research and collaboration. Governor of the Bank of Ghana, Ernest Addison, stressed the importance of bolstering reserves in order to reduce fluctuations in the cedi’s value and protect economic stability.
Some are hopeful that the cedi will regain its strength and reach a rate of GHS 10.00 per dollar. The challenges we are facing in our economy include problems with the exchange rate and issues within the financial sector. I believe the positive news is that we are making strides, as the advancements we are witnessing are similar to those in other areas.
We must maintain our focus, put in place the necessary policies, and establish reserves to sustain the advancements we have achieved.
He explains that this approach will not only bolster the local economy but also increase investor trust and contribute to overall economic stability.
Our foreign exchange reserves total $7 billion dollars. I can manipulate the dollar-cedi rates to GHS 10 if I choose to do so tomorrow. However, the question remains: what will happen in the future? As we navigate through different considerations, such as building reserves and controlling the exchange rate. Governor Addison added that there is still hope for some positive outcomes, including potential currency appreciation.
He was addressing the crowd gathered for the debut of “The Concise Law of Banking”, a book written by private legal practitioner Afua Appiah-Adu.
The Concise Law of Banking was commissioned by the Institute for Law & Development (ILAD) as a practical and straightforward guide to banking law.
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The book provides an in-depth examination of key concepts in banking law that are essential to understanding the industry.
Some of the topics covered in this book are Introduction to Banking Law, Bank Regulation, Supervision and Licensing, The Banker-customer Relationship, Bank Accounts, and Cheques.
This manual provides valuable information on banking law.
