Whose interest is the heavy intervention in the FX market serving? – John Kwakye

The Director of Research at the Institute of Economic Affairs, John Kwakye, has questioned the Bank of Ghana’s intervention to stabilise the cedi a few weeks before the December 2024 elections.

He questioned the bank’s decision to act just days before the 2024 general election.

The Bank of Ghana sold over $200 million in the forex market in the first week of November to stabilise the cedi against major trading currencies.

The local currency has somewhat responded positively and has declined marginally in the past few weeks.

John Kwakye wrote on X: “What must be the reason for the BoG to intervene heavily in the FX market to appreciate the cedi just a few weeks before the election? Whose interest is the Bank serving?”

The cedi has come under intense pressure this year, selling at GH¢17 from GH¢12 at the beginning of 2024.

After the Central Bank’s intervention, the cedi is currently trading between GH¢15.90 and GH¢16.40 at the Bank of Ghana and some major forex bureaus as of November 26, 2024.

SSD/MA

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