The Bank of Ghana is of the view that the cedi performed relatively well in comparison to other frontier and emerging markets in 2018.
Governor, Dr. Ernest Addison submitted at the reduction of the policy rate from 17 percent to 16 percent that the cedi’s 8.4 percent depreciation fared better than the Pound and the Euro and a host of other currencies.
He stated Argentina’s Peso suffered a 50 percent depreciation, Turkish Lira 28, Russian Ruble 17, Zambian Kwacha 16.2 and South African Rand 13 percent depreciation last year.
Dr. Addison had in an earlier interview with the media stated that the cedi appreciated against the dollar within the first five months of 2018, till the emerging market was hit with increased U.S interest rates leading to a depreciation of the currencies of such markets, including Ghana.
When the Cedi depreciated marginally against major international currencies, especially the US dollar, the Central Bank introduced measures including withdrawal of both Foreign Currency and Foreign Exchange Accounts in Cedis, at the existing exchange rate over the counter, except for travelling purposes.
The governor also welcomed the Fiscal Council saying it affords a forum for discussion for regulators spanning banking, insurance and pension funds fields.
Mr. Ernest Addison further observed the council will enhance stability of the money market while the various institutions maintain their independence.
By Michael Eli Dokosi/goldstreetbusiness.com