Currency Analyst, Samuel Ampah, says government’s decision to pump $800 into reserves is a short term measure which cannot be sustained.
The Bank of Ghana (BoG) announced that it will add $800 million to the country’s reserves to soothe the cedi against the dollar by the end of the first quarter.
According to the head of Financial Markets at the Central Bank, Mr Steven Opata, the release of more dollars will increase the Net International Reserve (NIR) to around $4 billion, which will be enough to provide confidence in the system and help stabilize the free fall of the cedi.
However, speaking to Ekourba Gyasi on Atinka AM Drive, Currency Analyst, Samuel Ampah said that although the release of $800 into the NIR will stabilize the free fall of the cedi for a while, the act is not feasible.
He attributed this to the fact that the basic fundamentals of Ghana’s economy are not strong enough to hold the cedi against the dollar.
According to him, there used to be some underlined assets, which included Ghana’s gold reserve. He was however quick to add that there are no more
Ghana | Atinkaonline.com | Vivian Adu Boatemaa