The Bank of Ghana says it cannot fix the exchange rate challenges in the country, Governor, Ernest Addison has said.
Appearing before the Public Accounts Committee of Parliament, Dr. Addison said the exchange rate, which is currently GH¢13 to a dollar, “reflects the movement on a day-to-day basis”.
“If there is additional demand for cedis, the currency will be restricted”, he said.
“The central bank cannot fix the exchange rate”, he noted, adding: “It depends on what transactions have taken place”, such as “payments to contractors.”
“Typically, that kind of payment can move the exchange rate because some of them immediately convert into foreign exchange. So, the exchange, really, reflects a lot of day-to-day pressures in the economy.”
Dr. Addison also noted that the gold-for-oil programme will shore up the cedi’s strength.
According to the Ministry of Lands and Natural Resources, Ghana took delivery of 40,000 metric tonnes of oil from the United Arab Emirates through the barter programme on Sunday, 15 January 2023.
Source: classfmonline.com