{"id":98923,"date":"2025-10-17T04:38:00","date_gmt":"2025-10-17T04:38:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=98923"},"modified":"2025-10-17T04:38:00","modified_gmt":"2025-10-17T04:38:00","slug":"cedi-appreciation-slowed-remittances-we-had-to-step-in-says-bog-governor","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=98923","title":{"rendered":"Cedi appreciation slowed remittances, we had to step in, says BoG Governor"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 31 Second <\/div>\n\n <\/div>
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Governor of the Bank of Ghana (BoG), Dr Johnson Asiama Pandit, says the Central Bank was compelled to support the foreign exchange market after the sharp appreciation of the cedi slowed remittance inflows.<\/p>\n

Speaking in Washington DC on the sidelines of the IMF\/World Bank Spring Meetings, Dr Pandit said the appreciation, which was initially seen as a positive signal, unexpectedly reduced the volume of foreign transfers coming into the country.<\/p>\n

\u201cRemittance inflows is another huge source of FX injection. You are looking at over $6 billion per year in remittance inflows. However, immediately after the currency appreciated, we saw a decline,\u201d he explained.<\/p>\n

He said this development came at a time when the Central Bank was making large external payments, creating pressure on the local market.<\/p>\n

\u201cBetween the second and the third quarter, we had to do a number of lumpy payments. There were all these large arrears in payments to some of the IPPs \u2014 billions of US dollars. <\/p>\n

\u201cWe also had domestic debt affected bondholders that wanted to exit because the currency had appreciated. We had to allow them to go,\u201d Dr Pandit said.<\/p>\n

He noted that these \u201clumpy payments\u201d between July and August coincided with a dry spell in the interbank foreign exchange market. <\/p>\n

\u201cBecause all these inflows accrue to the central bank, and it was happening at the time when we saw a decline in remittance inflows, the central bank needed to step in,\u201d he said. <\/p>\n

\u201cThe interbank FX market had dried up during that time, and so the central bank needed to provide that support.\u201d<\/p>\n

Dr Pandit rejected suggestions that the Bank of Ghana had intervened excessively in the foreign exchange market, insisting the move was necessary to maintain stability.<\/p>\n

\u201cYes, there were allegations about whether we were intervening in the market, but that was not exactly the case,\u201d he said. <\/p>\n

\u201cAll we seek to do is to limit the volatilities in the markets, to ensure that we have that smooth dynamics in the market, and that\u2019s the framework we\u2019ll maintain going forward.\u201d<\/p>\n

He disclosed that the situation has since improved, with increased activity in the interbank market. <\/p>\n

\u201cWe have written to the mining firms, for example, to take all their inflows through the commercial banks. We are beginning to see some pickup in activity in the interbank FX market,\u201d he said.<\/p>\n

He explained that gold proceeds are an exception, as those go directly to the Central Bank\u2019s reserves. <\/p>\n

\u201cAs of yesterday, we had committed to make available $150 million. This morning, the market had picked up only $90 million, so $60 million automatically goes into our reserves. Tuesday, we made available $150 million, and the market picked up less than half. So automatically it goes into our reserves,\u201d he said.<\/p>\n

Dr Pandit stressed that the Bank of Ghana does not \u201cover support\u201d the market but acts to smooth volatility and maintain balance. <\/p>\n

\u201cWith activity picking up in the interbank FX market, the central bank wouldn\u2019t have to be that present,\u201d he added.<\/p>\n<\/div>\n

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\"CediGovernor of the Bank of Ghana (BoG), Dr Johnson Asiama Pandit, says the Central Bank was compelled to support the foreign exchange market after the sharp appreciation of the cedi slowed remittance inflows.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2304,1808,319,1969,1883,10,9],"tags":[],"class_list":["post-98923","post","type-post","status-publish","format-standard","hentry","category-bog-governor","category-cedi-appreciation","category-economy","category-hp-news-3","category-national","category-politics","category-popular"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/98923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=98923"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/98923\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=98923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=98923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=98923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}