BoG to purchase forex from mining, oil sector to enhance liquidity supply – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has said the Bank of Ghana will in the coming weeks continue to adopt deliberate measures aimed at sustaining gains made at strengthening the local currency.

In the past two weeks, the cedi has recorded some gains against major trading currencies, especially the US dollar, recording a 63.7 percent appreciation in mid-December 2022.

Delivering an address to mark the centenary celebration of the Ga Presbytery of the Presbyterian Church of Ghana, President Akufo-Addo said the government in collaboration with the Bank of Ghana will ensure it sustains gains made on the cedi.

Explaining the rationale behind the recent appreciation, he noted that “Cedi liquidity tightening measures, resulting in the offloading of forex, as a store of value, by speculators; the improvement of forex flows from remittances and the mining sector; and the reaching of a staff-level agreement with the IMF for a US$3 billion package.”

“Indeed, in the weeks ahead, the Bank of Ghana will continue with the purchases of forex from the mining and oil sectors to enhance liquidity supply to the market; continue with the single, unified forex forward auction and some modest targeted bilateral support to critical imports; and the implementation of the gold for oil swap transaction, which will significantly remove forex pressures on the cedi,” President Akufo-Addo said.

Despite being optimistic about the gains made thus far, President Akufo-Addo maintained that the country was still 'not out of the woods yet' toward restoring the economy.

Meanwhile, Ghana and International Monetary Fund on December 13 reached a Staff-Level Agreement for an Extended Credit Facility of $3 billion over a three-year period.

The agreement is however subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances by Ghana’s partners and creditors.

MA