GoldBod FX framework aims to make dollar supply predictable – Acheampong

Dr Theo Acheampong, GoldBod’s Technical Advisor, explained that the foreign exchange framework devised by GoldBod aims to make the supply of US dollars more predictable. The Bank of Ghana will continue its role in addressing excessive exchange rate volatility. Transparency and advance planning are crucial to the arrangement, according to Acheampong.

Speaking on Joy News’ PM Express Business Edition, he elaborated that the framework would enable market participants to anticipate and plan their foreign exchange requirements effectively.

Responding to a question from host George Wiafe about GoldBod’s involvement, Acheampong affirmed the Finance Minister’s backing for the initiative. He also addressed concerns about potential overlap with the central bank’s responsibilities, stating that the framework is already in operation and the details have been made publicly available on GoldBod’s website.

GoldBod introduced its Spot FX Sales and Intermediation Framework on October 5, providing for dollar sales to authorized commercial banks through the GoFX platform on Tuesdays and Thursdays. When demand surpasses available dollars, banks receive proportional allocations.

GoldBod reported its maiden sale of approximately $125 million to commercial banks on October 6 under the new arrangement. Acheampong reiterated that the central bank would still step in if it detects excessive volatility in the exchange rate, as per its mandate. He emphasized that instability in the cedi would necessitate the Bank of Ghana's intervention to restore stability.