GoldBod FX framework aims to make dollar supply predictable – Acheampong
Economist and political risk specialist Dr Theo Acheampong says GoldBod’s foreign exchange framework aims to make dollar supply more predictable, while the Bank of Ghana retains its role in tackling excessive exchange rate volatility.
Economist Dr Theo Acheampong explained that GoldBod's foreign exchange framework is designed to make the supply of dollars more predictable while the Bank of Ghana maintains its role in managing excessive exchange rate volatility. Transparency and planning are crucial elements of the arrangement, according to the Finance Ministry's Technical Advisor.
Speaking on Joy News' PM Express Business Edition, Dr Acheampong emphasized that the framework would enable the market to anticipate foreign exchange requirements and plan accordingly.
He responded to a question about GoldBod's association with Finance Minister, stating that the framework has the minister's support. Concerns were raised about potential overlap with the central bank's responsibilities, but Dr Acheampong clarified that the framework is already being implemented, with GoldBod having made its details public on the company's website.
The new Spot FX Sales and Intermediation Framework was announced on October 5, allowing dollar sales to authorized commercial banks through the GoFX platform on Tuesdays and Thursdays.
Should demand exceed the available dollars, banks receive proportional allocations. The Bank of Ghana monitors the framework in real-time, retaining the authority to intervene if there's an excessive volatility in the exchange rate. Dr Acheampong stressed that the central bank would step in to manage the cedi's instability, ensuring it performs its role effectively.
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