The Bank of Ghana (BoG) is reinforcing its foreign exchange reserves to help stabilize the cedi as demand for foreign currency is expected to increase with the festive season approaching.

This move aims to address the depreciation of the cedi against major currencies, currently trading at about GHS 17 per dollar, reflecting a 24.3% decline so far this year.

Dr. Ernest Addison, Governor of the Bank of Ghana, highlighted that bolstering reserves is a crucial step toward reducing exchange rate volatility and enhancing economic stability.

“Some are praying that the cedi will recover to GHS 10.00 to a dollar. These are the problems in our economy, the issues about the exchange rate and financial sector issues. But I think the good news is that we are making progress because the developments we are seeing are not different from other jurisdictions.

“So, we need to stay focused and implement the appropriate policies and build buffers to be able to support the progress we have made.”

He emphasized that the Bank’s strategy is not only aimed at reinforcing the local currency but also at building investor confidence and ensuring overall economic stability.

“We have $7 billion dollars in foreign exchange reserves. If I want to drive the dollar-cedi rate at GHS 10, I can do that tomorrow. But what about the day after tomorrow? So, we are balancing various factors, trying to build reserves and managing the exchange rate. So, all is not lost yet, there is some silver lining in the cloud, hopefully we will see the appreciation of the currency”, Governor Addison added.

Dr. Addison shared these insights at the launch of The Concise Law of Banking, authored by legal practitioner Afua Appiah-Adu and commissioned by the Institute for Law & Development (ILAD).

This comprehensive guide to banking law covers core topics relevant to students, banking professionals, and legal practitioners, including: Bank Regulation, Supervision, and Licensing; Banker-Customer Relations; Electronic Payment Systems; Money Laundering; Credit Reporting; and Borrowing and Lending in Banking.