Resist Forex Market Abuse;  NPP’s Ahiagbah Urges BoG

 NPP’s Ahiagbah Urges BoG to Clamp Down on Forex Market Abuse

The Director of Communications of the New Patriotic Party (NPP), Richard Ahiagbah, has called on the Bank of Ghana (BoG) to take a strong action in regulating the foreign exchange market to prevent abuse that contribute to the Cedi’s performance.

In a statement on his social media platform, Ahiagbah emphasized the need for the BoG to persistently discharge its regulatory mandate to address the flagrant abuses in the Forex market.

He pointed out that currencies in the South Sahara Africa (SSA) Region, including the Cedi, have been struggling due to the appreciation of the Dollar in the first quarter of 2024.

Ahiagbah commended the Ministry of Finance for containing the impact of an appreciating Dollar on the Cedi thus far.

The Bank of Ghana has responded to Ahiagbah’s concerns by stating that it remains committed to providing stability in the exchange rate for the Cedi.

Governor Dr. Ernest Addison assured that the central bank has sufficient foreign exchange reserves to support the market and urges economic agents to stop engaging in speculative purchases, as they will suffer economic losses when the correction occurs.

The Bank Of Ghana has taken measures to improve market conduct and instill sanity in the foreign exchange market.

These measures include working with the Ghana Association of Banks to streamline documentation requirements for foreign payments, directly absorbing foreign exchange needs of some corporate institutions, and stepping up foreign exchange bureaux monitoring.

In addition, BoG has set up a team  to monitor all foreign exchange bureaux to ensure compliance with regulatory framework.

Also read;Bring Dollar Down to GHC10 in 2 Weeks or Face Demonstration

The Governor warned that all foreign exchange bureaux advertising rates outside their premises and on social media platforms must desist from this practice.

On fiscal policy, Dr. Addison emphasized the need for strict fiscal discipline for the rest of the year to strengthen confidence in the economy.

He also highlighted that while implementation of policies is consistent and aligns with the IMF-supported programme, there is a need to ensure that recent depreciation of the currency does not become embedded into pricing behavior of businesses and inflation expectations.

According to Dr. Addison, the strong reserve build-up, strong disinflation process, significant progress on fiscal policy consolidation, positive current account balances, and good progress on external debt restructuring process have all worked together to deliver enough buffers to support the exchange rate.

The Committee also maintained its forecast for inflation within the monetary policy consultation clause of 13-17 percent at the end of the year, contingent on sustaining a tight monetary policy stance and aggressive liquidity management operations.

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