BoG’s injection of hard currency behind cedi appreciation – Kabiru

Abdul Kabiru Mahama, the MP for Walewale, discussed the cedi's appreciation. He credits this to strategic actions by the Bank of Ghana (BoG).

During a panel on Channel One TV’s The Big Issue, he explained how hard currency helped. The BoG injected nearly $500 million into the market in April. This action supports the local currency using reserves.

Mahama noted that when currency is available, people stop hoarding dollars. This availability calms the market and reduces anxiety. It encourages businesses to keep local currency instead of converting to dollars.

While Mahama focused on BoG's auction strategy, others see more factors. Prof. Eric F. Oteng-Abayie from KNUST offered a broader perspective. He believes domestic reforms and global conditions also contributed.

The cedi had depreciated sharply earlier this year but is now strengthening. Recently, it has traded at about 12.4 cedis per U.S. dollar.