Depreciation of the Cedi: 5 things Akufo-Addo is doing to strengthen the local currency against the dollar

  • The president announced a series of strategies to prevent the cedi from rapidly falling against the dollar and other trading currencies
  • The president said during his national address on the economy that there are firm plans to release more dollars into the system
  • He also said that a new legal and regulatory framework will soon be introduced to keep forex in Ghana.

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The President expressed confidence that some firm action taken by his economic management team to halt the cedi’s depreciation will yield results.

Nana Akufo-Addo told the business community in Ghana during an address to the nation on Sunday October 30 that the country is not the only country affected by world events.

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He described Ghana’s situation as an “economic crisis”, noting that the sharp fall in the cedi is a major contributor.

Cedi and dollar
The cedi lost nearly 50% of its value to the dollar from January to October 2022. Source: UGC.
Source: UGC

President Akufo-Addo announced five strong strategies that have been taken to restore order to the foreign exchange markets. He has already said that the strategies are starting to bring some calm.

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The President announced the following:

  1. Reinforced surveillance action by the Bank of Ghana in the bureau de change and black market markets to root out illegal operators, as well as to ensure that those who are authorized to operate are legally complying with market rules. Some money changers have already had their licenses revoked, and this exercise will continue until full order is restored in the sector;
  2. New inflows of dollars provide liquidity to the foreign exchange market and meet ongoing demand;
  3. The Bank of Ghana has fully engaged with commercial banks to provide liquidity to ensure that the wheels of the economy continue to function in a stabilized manner, until the IMF program takes effect and the expected funding assurances from other partners are also coming;
  4. The government is working with the Bank of Ghana and oil producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign currency earned from operations in Ghana is initially paid to banks domiciled in Ghana. to help stimulate the domestic foreign market. Change market; and
  5. The Bank of Ghana will strengthen its gold buying program.

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“I am confident that these immediate measures designed to change the structure of our balance of payments flows, clean up the foreign exchange market to ensure that banks and foreign exchange offices operate according to international best practices, as well as reinforced supervision, will go a long way to cleaning up our foreign exchange market and making it more resilient to external vulnerabilities in the future,” assured the President.

Akufo-Addo calls on traders to stop slapping huge markups on commodity prices in speech on economic crisis

In the related story, reported that President Akufo-Addo called on market women and other traders to relax the way they put huge markups on the prices of goods in the market.

When addressing the nation on the steps his government is taking to tackle the “economic crisis”, the president said it was important traders were measured on their pricing decisions.

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‘I saw the pain’: Akufo-Addo finally admits Ghana are tough

He also praised the suppliers and distributors of goods who have ensured that there are enough products on the market despite the uncertainties Read more:

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