The Finance Minister, Dr. Mohammed Amin Adam, has assured businesses and market stakeholders of the Bank of Ghana’s (BoG) capacity to meet dollar demand with its current reserves. This follows continuous depreciation of the cedi, with the dollar selling at GH¢17 at some forex bureaux.
Speaking at a press briefing in Washington, D.C., held alongside the IMF and World Bank Annual Meetings, Dr. Amin Adam emphasized that the central bank is well-equipped to manage foreign exchange needs, which is vital for stabilizing the Ghanaian cedi and supporting business transactions.
He stressed that the BoG maintains adequate dollar reserves to meet market demand, reassuring businesses reliant on foreign currency for imports, production, and international transactions. This sufficiency in reserves aims to enhance market confidence and reduce volatility in the foreign exchange market.
“We should look at the current reserve position of the Bank of Ghana, and that should give everyone some comfort about its ability to meet market demand,” Dr Amin Adam also is quoted by a local news portal, to have said.
Maintaining adequate dollar reserves is essential to sustaining currency stability, a crucial factor for businesses managing costs amid fluctuating exchange rates.
This announcement comes amid discussions during the IMF and World Bank Annual Meetings on global economic challenges, where Dr. Amin Adam highlighted Ghana’s proactive measures to stabilize its economy and ensure that foreign exchange demands can be met effectively.
Through its dollar auction programme, the BoG has intervened in the market in an attempt to meet dollar demand. But the amount of dollars auctioned has not been able to prevent the dollar from rising.
For businesses and market players, assurance of BoG’s dollar reserve sufficiency provides added security for planning and transactions, especially in sectors heavily dependent on imports. This measure is expected to support supply chains, cost control, and investment stability. But if the dollar continues to go up, these assurances will lose their essence.
