Bank of Ghana releases 218.5 million dollars to stem Cedi depreciation

Joy Business has learnt the Bank of Ghana last week released onto the market, 218.5 million dollars to prevent the cedi from further sliding into a free fall. The funds came upon requests from commercial banks. It will also help in meeting the country's oil imports needs and syndication loan repayment by one of the Cocoa Licensed Buying Companies.

The intervention by the Bank of Ghana, comes after the local currency recorded a depreciation of about a 0.5 percent, since the beginning of the year. This was as a result of the surging demand for the dollar by both local and foreign investors, and businesses to cover import bills.

It however appears the intervention by the central bank hasn't achieved the desired impact, as the cedi continued to fall in value. As at Monday, 16 January, 2011, one needed 1 cedi 71 pesewas to buy a dollar on the Forex market. This is the lowest value drop the currency has seen since in a while.

Officials of the Central Bank have dismissed assertions that there is deliberate policy to prevent the cedi from over-appreciating on the back of oil production on the back of oil production. Sources close to the bank have however told JOYBUSINESS, the bank's focus now is to ensure that importers are not unduly affected by the fluctuations.

Story by Emmanuel Agyei/George Wiafe - Joy Business