BoG Governor, Dr. Ernest Addison
The Director of Research at the Institute of Economic Affairs, Dr. John Kwakye, has noted that the current performance of the local currency is artificially orchestrated.
According to him, this is because of the preparations towards the upcoming elections.
He added that the real situation will be appreciated after the election.
“Recent cedi appreciation is being deliberately orchestrated by BoG in the run-up to the election. It is not due to any improved fundamentals. The real test will come after the election,” he wrote on X on November 30, 2024.
The Bank of Ghana has noted that the local currency has seen some gains in recent times due to the performance of the external sector.
The Central Bank said the external sector position has improved remarkably in the year, supported by a higher current account surplus and a reduction in net financial outflows.
This has led to a strong external reserve build-up.
It said the current account surplus increased to US$2.2 billion in the first nine months of the year, compared with a surplus of US$912 million over the corresponding period in 2023.
The strong current account surplus was supported by increased gold and crude oil exports as well as robust remittance inflows.
This development, together with a lower net outflow of US$414 million in the capital and financial account (relative to a net outflow of US$1.4 billion in 2023), contributed to an improved balance of payments position in the first three quarters of the year.
As a result, from the beginning of the year to the end of September 2024, a reserve build-up of over US$1.91 billion was accumulated, pushing Reserves up to US$7.83 billion (equivalent to 3.5 months of import cover).
SSD/ ADG
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