Election fever will not cause cedi depreciation – BoG assures

The Bank of Ghana(BoG) has assured that the cedi will not lose its stability against the dollar despite signs of the currency recording some marginal depreciation in recent times.

Some market watchers have attributed the development to speculations as the general elections draw closer.

But assuring the public of a stable currency during and after the elections, the Governor of the Bank of Ghana, Dr. Abdul Nashiru Issahaku maintained that the cedi is rather stabilizing and has shown remarkable performance compared to election period in 2012.

According to him, such marginal movements in the exchange rate market are expected, hence adequately being observed by the central bank.

“One of the things we do is moderate volatility of the currency. Stability means there will be some movements up and down.

What we are seeing is some of the movement which is expected and we’ve indeed expected that to happen,” he assured.

Pointing out some measures being taken, Dr. Issahaku stated that the central bank is always moderating the volatility, allowing the market to determine the price.

“We are proactively responding to the[volatility] both from the way we intervene in the market to moderate the volatility, not hold it because we operate a liberal price system here,” he stressed.

Dr. Issahaku insisted that the cedi is experiencing stability  since a period comparison of the currency with previous years can prove that.

He cited for example that the currency was unstable in the same period this year in 2012, which was an election year.

“The claim that the cedi is stabilizing is evident, it’s actually stabilizing. When we compare to last year and previous elections it’s for a reason.

There is improved performance of the currency given what we expected in an election year, when I say ‘we’  I mean general citizenship of this country.

And what we are seeing is a remarkable performance of the currency compared to last year when it was about 15 percent depreciation,” he said.

Exclusively Newslinegh

About (1280 Articles) is run by a network of politically non-aligned and progressive Ghanaian citizen Journalists, who are committed to affecting positive change, promoting national development and improving information access.

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