GoldBod FX framework aims to make dollar supply predictable – Theo Acheampong

Economist and political risk specialist Dr Theo Acheampong states that GoldBod's foreign exchange framework aims to make dollar supply more predictable while the Bank of Ghana maintains its role in addressing excessive exchange rate volatility. Dr Acheampong emphasized transparency and advance planning as central to the arrangement, expressing that the framework should help market participants anticipate foreign exchange needs and plan supply.

He explained that by knowing in advance how much foreign exchange is required each week or month, market participants can predict and supply the available dollars.

The Bank of Ghana's Technical Advisor made these remarks on Joy News' PM Express Business Edition, following a question about GoldBod's alignment with the Finance Minister's guidance. He also addressed concerns about potential overlap with the central bank's responsibilities, noting that the framework is already in operation and that GoldBod has made its details public on their website.

GoldBod introduced its Spot FX Sales and Intermediation Framework on October 5, offering dollar sales to authorized commercial banks through the GoFX platform on Tuesdays and Thursdays.

Under this new arrangement, the Bank of Ghana oversees the program, with real-time access to the platform and transaction reports after each sale. GoldBod reported a maiden sale of approximately $125 million to commercial banks on October 6, operating under the new framework. Dr Acheampong stressed that while the central bank retains responsibility for responding to sharp movements in the exchange rate, the framework aims to provide greater predictability and transparency.

He affirmed that the Bank of Ghana would step in if it detects excessive volatility within the exchange rate.