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Five things the Government Is Doing To Strengthen the Cedi Against the Dollar.

The president has raised the possibility that strong steps taken by his economic management team to stop the devaluation of the cedi will yield results. During a speech to the nation on Sunday, October 30, Nana Akufo-Addo reminded the Ghanaian business sector that the country is not the only one suffering from global events.

He called Ghana's condition an "economic crisis," highlighting the sharp decline of the cedi as a key culprit.

President Akufo-Addo presented five concrete plans for restoring stability in the FX markets. He stated that the techniques are already bringing some relief.

The president made the following announcement: 

1.    The Bank of Ghana has increased its supervision of the forex bureau markets and the black market to weed out illegal operators, while also ensuring that those licensed to operate legitimately follow market norms. Some currency bureaus' licences have already been cancelled, and this process will continue until total order is restored in the industry;

2.    Fresh dollar inflows are supplying liquidity to the foreign currency market and meet pipeline demand.

3.    The Bank of Ghana has given its full commitment to commercial banks to provide liquidity to ensure that the wheels of the economy continue to turn stably until the IMF Program kicks in and the financing assurances expected from other partners arrive;

4.    The government is working with the Bank of Ghana and the oil-producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange earned from operations in Ghana is returned to the government.

5.    The Bank of Ghana will boost its gold-buying program. 

He continued saying, “I am confident that these immediate measures designed to change the structure of our balance of payment flows, sanitize the foreign exchange market to ensure that the banks and forex bureaus operate along international best practices, together with strengthened supervision, will go a long way to sanitize our foreign exchange market, and make it more resilient against external vulnerabilities going forward”.

 

He went ahead, sending caution to traders and market women to stop or relax, putting huge prices on products. 

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Akufo-Addo Bank of Ghana Ghana Ghanaian Nana Akufo-Addo

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