The Finance Minister, Dr. Mohammed Amin Adam, has assured businesses and market stakeholders that the Bank of Ghana (BoG) has accumulated significant dollar reserves to meet market demand.

Speaking at a press briefing in Washington, D.C. during the Annual IMF and World Bank meetings, Dr. Amin Adam emphasized that the current reserve levels should reassure those concerned about foreign exchange availability.

"We should look at the current reserve position of the Bank of Ghana, and that should give everyone some comfort about its ability to meet market demand," he stated. By the end of August 2024, Ghana’s international reserves reached $7.5 billion, according to BoG data.

Dr. Amin Adam also highlighted expected inflows that could further stabilize the cedi. Ghana anticipates a $360 million disbursement from the IMF in December, pending the approval of the third program review. Additionally, a $300 million disbursement from the World Bank under its Development Policy Operations (DPO) Series is expected, further boosting foreign currency reserves.

“These expected inflows, in addition to what the Bank of Ghana already has, should help in stabilising the cedi going forward,” the finance minister remarked, addressing recent concerns over forex fluctuations.

The cedi has recently come under pressure, with some forex bureaus reportedly selling the dollar above GHS17, despite BoG’s data indicating rates below GHS16. Analysts attribute this volatility to increased dollar demand as businesses prepare to finance Christmas imports and restock for next year, fearing potential depreciation. Speculation surrounding the upcoming December elections has also driven up foreign currency demand.

In response, the BoG has actively intervened to meet dollar demand through its dollar auction program, targeting Bulk Oil Distribution Firms and conducting weekly auctions for commercial banks to maintain a steady supply. These measures form part of a broader strategy by the BoG to stabilize the cedi and manage market uncertainty, aiming to minimize the currency’s depreciation amidst fluctuating market dynamics.