BoG interventions help cedi recover , but market watchers are concerned

The Bank of Ghana (BoG)’s interventions in the foreign exchange market have bolstered the cedi, leading to weekly gains of 0.8% against the US dollar, 2.12% against the British pound, and 1.96% against the euro, closing at GH¢16.79 per dollar.

This recovery was driven by liquidity injections, including selling $209.10 million in daily auctions and $20 million to Bulk Oil Distributing Companies.

The BoG also extended FX support to the interbank market under strict conditions to stabilize demand and curb speculation.

However, concerns about the sustainability of Ghana’s FX reserves, valued at $7.5 billion in July (3.4 months of import cover), remain, especially with upcoming elections heightening fiscal and currency pressures.

While current measures have eased market pressures, long-term strategies are necessary to maintain stability post-elections.