Bank of Ghana assures universal banks of having enough dollars to stabilise the cedi following the issuance of the new GH¢100 and GH¢200 notes

The Bank of Ghana (BoG) has urged universal banks in the country that it has adequate dollars to stabilise the cedi following the issuance of the new GH¢100 and GH¢200 notes.

Dr Ernest Addison, Bank of Ghana Governor

This was captured in a circular issued to all commercial banks in the country.

According to report, the circular is a fresh move by the BoG to manage market sentiments because of its impact on the Ghana Cedi.

Why the move

The regulator believes the current pressure on the cedi is not backed by real demand but fears that the local currency position could worsen very soon.

The central bank's reserve is said to be more than 8 billion dollars for this month, however, despite this strong position, the pressure on the Ghana Cedi reaches high levels

The Ghana Cedi is currently trading against the dollar at GHC5.57075, this could get worse because businesses will seek more dollars to finance their imports this period.

The Central Bank has however maintained that building up the required dollar reserve is needed to up the support required to slow the cedi's rate of depreciation, the Central Bank said they are working to align its forex rate to that of the market.

This will help address the disparity in the regulator's rate and what the commercial banks are offering to the public and this will help firmly stabilise the Ghana cedi against the dollar.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

5 African countries with the cheapest gas prices in 2022

5 African countries with the cheapest gas prices in 2022

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Haiwezi, my wife is prettier - Omanyala turns down Huddah’s advances

Haiwezi, my wife is prettier - Omanyala turns down Huddah’s advances