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BoG Denies Using Dollar Auctions To Stop Cedi Depreciation
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The Bank of Ghana (BoG) has dismissed reports that it will consider rolling out weekly dollar auctions on the foreign exchange market as one of the measures it will adopt to prevent further depreciation of the cedi against the dollar.

Some financial analysts have opined that the move is one of the measures the Central Bank was likely to adopt. The move will mean that banks that need dollars to meet requests by their customers will put in bids and the central bank will sell dollars in a ranked order of bids received from the highest to lowest.

But the governor of the BoG, Amissah Arthur, has dismissed the assertions. We have moved from auctioning to where we are and going back to where we are will be retrogression, he told Citi Business News.

Industry players have predicted that the dollar was likely to depreciate another 10 percent this year. Though Mr. Arthur failed to assert the Central Banks prediction, he said it will be far from the 10 percent some financial analysts are predicting.

He said: I think that over the last three years we have seen a level of stability and the decision that the MPC has taken shows that they are committed to making sure that the stability is maintained. So I can say that it is nowhere near the figures being predicted.
Source: Citifmonline.com

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