Bank of Ghana must step in when cedi turns volatile – Theo Acheampong
Economist and political risk specialist Dr Theo Acheampong says the Bank of Ghana must intervene when the cedi becomes excessively volatile, even as GoldBod takes on support in the foreign exchange market.
Economist Dr Theo Acheampong told Joy News that the Bank of Ghana should step in to stabilize the cedi if it becomes excessively volatile. He stressed that this is the central bank's responsibility under the new foreign exchange intermediation framework. "The central bank would step in if they see excessive volatility within the exchange rate. That is the function of a central bank," Dr Acheampong said on Thursday's PM Express Business Edition.
His concerns come as GoldBod introduces a Spot FX Sales and Intermediation Framework, expanding its role in foreign exchange supply. The new system allows commercial banks to access dollars through GoldBod's GoFX platform on Tuesdays and Thursdays. The Bank of Ghana continues to have regulatory oversight and access to transaction information.
Under the framework, banks request dollars backed by actual unmet foreign exchange demand or evidence of a short position. The Bank of Ghana reported that GoldBod sold approximately $125 million in its first sale. Dr Acheampong emphasized that the framework provides for central bank intervention when exchange rate movements become too extreme.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
