Governor Addison emphasized the Bank's substantial foreign exchange reserves, advising against speculative purchases, which could lead to economic losses when corrections occur.

At the 118th Monetary Policy Committee press conference on Monday, May 27, the BoG announced measures to enhance market conduct and maintain order in the foreign exchange market.

The Bank has collaborated with the Ghana Association of Banks to streamline documentation for foreign payments, reducing reliance on informal markets.

To address high demand pressures, the BoG has recently absorbed foreign exchange needs from some corporate institutions, easing pipeline demand from commercial banks.

Aware of illegal operators, the BoG is working with the Financial Intelligence Centre to clean up the foreign exchange market. Monitoring of foreign exchange bureau will be intensified to ensure compliance with regulations.

Foreign exchange bureaux must stop advertising rates outside their premises and on social media. The BoG has established a task force to oversee compliance. Election-year sentiments and statements affecting market confidence should be managed carefully.

In fiscal policy, expenditures exceeded revenue growth in the first quarter due to early IPP arrears payments. Maintaining fiscal discipline throughout the year is crucial for economic confidence.

The committee noted that consistent implementation of macroeconomic and structural reform policies aligns with the IMF-supported program. Efforts should prevent recent currency depreciation from affecting business pricing and inflation expectations.

The reserve build-up of about US$2 billion since the IMF program began, along with strong disinflation, fiscal consolidation progress, positive current account balances, and external debt restructuring advances, have provided buffers to support the exchange rate.

Forecasts indicate a slightly elevated inflation profile due to recent exchange rate pressures and transportation fare adjustments. However, inflation is expected to stay within the monetary policy consultation range of 13-17 percent by year-end, contingent on maintaining a tight monetary policy and aggressive liquidity management.

“Given these considerations, the Committee decided to maintain the Monetary Policy Rate at 29 percent,” he said.