BoG expects cedi to stabilise major currencies by end of March

The Central Bank says it expects the cedi to stabilize against major international currencies especially the dollar by the end of March this year.

Market analysts have said the cedi has depreciated by a little over 5 percent to currently be trading at around GHC4.50.

According to the Bank of Ghana (BoG), the challenge can be attributed to activities of speculators, demand surge to finance imports and recent developments in the economy.

Speaking to JOYBUSINESS, Head of Treasury at the BoG, Evelyn Kwatia said some of the additional measures that the bank is introducing could even see the local currency appreciate against the dollar at the end of the first quarter of this year.

These measures include; falling on short-term facilities with other international banks and bilateral dollar support to help address current challenges facing the cedi.

She also assured businesses not to panic as the BoG has adequate reserves to stabilize the cedi.

The Central bank warns that it would take action against banks that are using dollars released onto the market for other purposes.

JOYBUSINESS is learning some commercial banks are using dollars released by BoG onto the market to balance their books, rather than giving it out to businesses.

This has caused some market analysts to question the effectiveness of BoG's recent interventions to stabilise the cedi, but Mrs Kwatia tells JOYBUSINESS they will move quickly to stop this practice.

Story by Ghana | Myjoyonline.com | Abubakar Ibrahim | Joy Business