The Bank of Ghana is set to pump two billion dollars into the economy by the end of 2015. This is geared towards stabilizing the performance of the local currency the Ghana Cedi.
Central Bank to pump $2bil into the market by end of 2015
"We pumped about $2 billion over the last two years to stabilize the currency. This year we are certainly going to release about to $2 billion.
The bank of Ghana decided in June to increase its injection of dollars into the market from 14 million dollars to 20 million dollars a day. This saw the Ghana Cedi appreciate against the dollar from GHC4 to GHC3.3.
Addressing the media in Accra, during the announcement of the monetary policy rate for the third quarter of the year, Governor of the Bank of Ghana, revealed that the bank's current efforts have yielded the marginal stability that the Cedi has recorded recently.
The governor also addressed public skepticisms about the central bank's ability to keep up with the dollar injections, and whether or not the bank is truly making daily injections of 20 million dollars.
Dr. Henry Wampah further revealed that the cause of the currency's volatility cannot be put down solely on the demand for the dollar, but to panic induced by the actions of speculators.
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