The Bank of Ghana Governor Dr. Ernest Addison has noted that the Central Bank he manages as a governor cannot fix the boring exchange rate.
Dr. Addison made the revelation when appearing before the Public Accounts Committee of Parliament, he said the exchange rate, which is currently seen at GHS13 to a dollar, “reflects the movement on a day-to-day basis”.
“If there is additional demand for cedis, the currency will be restricted”.
“The central bank cannot fix the exchange rate”, he noted, adding: “It depends on what transactions have taken place”, such as “payments to contractors.” He noted
“Typically, that kind of payment can move the exchange rate because some of them immediately convert into foreign exchange. So, the exchange, really, reflects a lot of day-to-day pressures in the economy.”
The governor is so confident that the gold-for-oil programme will shore up the cedi’s strength.
Source: Apexnewsgh.com/Ghana
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