Cedi stabilising – Terkper

The Ghana cedi is stabilising against the major international currencies of trade, Finance Minister Seth Terkper has told journalists at a press conference on February 9 2016.

According to Xe, $1.00 = GHS4.00494.

“The currency is stabilising as inflows improve; seasonal pressures subside; and policy actions take effect,” Mr Terkper said.

According to him, forex inflows from cocoa, donor agencies, and bond proceeds boosted reserves leading to an improvement in investor confidence.

Other measures such as the raising of the Monetary Policy Rate to 26%; the raising of Cash Reserve requirement from 9% to 11%; as well as the opening of a 2-yr note to foreign investors; supporting the currency during volatile periods; and tightening of customs operations, tariff classification and valuation have all contributed in stabilising the currency.

“Cedi depreciation and fuel price adjustments have pushed headline inflation out of the target band.

“However, in recent months, a tight monetary policy stance; reduced exchange rate volatility; and lower crude oil prices have stabilised the outlook for inflation,” Mr Terkper added.