Dollar injection Bank of Ghana clueless about the economy - Casely- Hayford

In July 2015, the Bank of Ghana decided to increase its dollar ingestion from  $14 million a week to $20 million dollars a day to stem the slide of the cedi.

  • Published:
Casely-Hayford - Financial Analyst play Casely-Hayford
24/7 Live - Subscribe to the Pulse Newsletter!

Financial analyst and ranking member of civil society organisation, Occupy Ghana, Sydney Casely- Hayford  says the current downward slide of the cedi vindicates the skeptics who said  the Bank of Ghana could not keep up a daily ingestion of 20 million dollars into  the economy as a swift measure to stabilize the currency.

In July 2015, the Bank of Ghana decided to increase its dollar ingestion from  $14 million a week to $20 million dollars a day to stem the slide of the cedi.

Speaking on Citi Fm’s Big Issues, the financial analyst said, the economy did not benefit in any way, from the temporary appreciation of the cedi, because even though the cedi appreciated against the major currency,  prices of commodities did not change.

“ We did not benefit in anyway. Even though the cedi appreciated, the prices of strategic commodities like fuel did not decrease at the pump”

Sydney Casely- Hayford further criticized the Bank of Ghana’s handling of the performance of the currency.

“They do not understand the Ghanaian economy.  If the Bank of Ghana understood this economy, and knew what to do, they would fix this problem. They don’t understand it. And because they don’t understand it they are doing knee- jerk reactions.”

When asked about the prospect of the $1.8 billion syndicated loan further stabilizing the Ghana Cedi, the financial analysts said it will be wrong for government to use the cocoa loan to stabilize the currency.

“Let me make it clear, the $1.8 billion cocoa syndicated loan must not be used to stabilize the currency. It will be wrong to do that. The loan is to pay cocoa farmers and export the cocoa.  It is not supposed to be used to stabilize the cedi.  Doing that is a lazy way of dealing with this problem. For the $1.5 billion Euro-bond, all I can say is, you cannot borrow your way out of debt.”

The Bank of Ghana has been banking its hopes on a planned $1.5 billion Euro-bond and a $1.8 billion dollar cocoa syndicated loan in order to increase dollar inflows and thereby stabilize the local currency.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email:

Recommended Articles

Recommended Videos

Top Articles

1 2018 World Happiness Report Somalia is a happier place to live than...bullet
2 MoMo Ghanaians to make int’l payments with mobile money as MTN...bullet
3 Nima Flagstaff House We'll return to vote for you in 2020 - Nana...bullet
4 Nepotism In Ghana NLA boss awards sister-in-law 11 contracts in...bullet
5 Banking In Ghana Ghanaian banks resist the use of crypto currencybullet
6 Police Service Debt Vodafone cuts off line to Ghana Police...bullet
7 Menzgold Ghana Don't deposit money with Menzgold – BoG...bullet
8 Electricity Tariffs PURC gazettes tariff reductionbullet
9 Acquiring Ghanaian Passports Ghanaians to receive...bullet
10 Prisons Recruitment Prison Service extends recruitment...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 Support Finance minister buys Kantanka carbullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
7 Bozoma Saint John 10 quotes from Uber top official, Bozoma,...bullet
8 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
9 Plane Crash Starbow suspends operations following plane...bullet
10 New Phone Nokia’s MWC 2018 event in 7 minutesbullet