Banking consultant Dr. Richmond Atuahene has thrown his support behind the Bank of Ghana’s decision to inject $1.15 billion into the foreign exchange market under its Domestic Gold Purchase Programme, describing it as a timely measure to stabilise the cedi and control inflation.
The intervention, announced by Governor Dr. Johnson Pandit Asiama, will see the Central Bank sell dollars on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.
The move forms part of efforts to boost forex liquidity, enhance market confidence, and ensure transparent access to foreign exchange.
Speaking to Citi Business News, Dr. Atuahene said the initiative was necessary, given Ghana’s current reserve position and the need to cushion the local currency.
“I do support the idea that when you have enough reserves, you need to intervene in the market to support the cedi against international currencies to make things better for us — because the more inflation, the more the cedi depreciates, and the more we get problems. So, I agree with the Governor,” he stated.
He also dismissed claims that the Central Bank may be over-intervening in the forex market, explaining that such actions are common globally.
“Recently, some people were making arguments that we are over-intervening, but currencies everywhere — even in the UK and Europe — see interventions in the market depending on the reserves that you have,” Dr. Atuahene added.
