First Deputy Governor of the Bank of Ghana, Dr. Zakaria Mumuni, says the cedi’s performance is not only a dramatic reversal from last year but an unprecedented feat since adopting a flexible exchange rate regime.<\/p>\n
\u201cYear to date, we\u2019ve had the cedi appreciating by over 12%\u2014specifically 12.2%,\u201d he stated on PM Express Business Edition.<\/p>\n
\u201cThe same time last year, we had depreciated by about 13%. So this is a complete reversal of what the situation was.\u201d<\/p>\n
Calling it \u201cmaybe unprecedented,\u201d Dr. Mumuni said the cedi\u2019s surge reflects the most decisive and effective policy mix the central bank has rolled out in recent history.<\/p>\n
\u201cIf you look at the data from when we started the floating rate regime up to now, this is the only time within the first four or five months that we have had this level of strength in the Ghana cedi.\u201d<\/p>\n
He emphasised that the turnaround is largely driven by domestic policy, not just external conditions.<\/p>\n
\u201cThe domestic factors really have more weight in this performance than the external factors,\u201d he said. \u201cIt simply reflects the careful mix of policies that are being implemented.\u201d<\/p>\n
A key part of this strategy was the Bank of Ghana\u2019s decision to hike interest rates and tighten monetary policy, moves that initially attracted public backlash.<\/p>\n
\u201cWhen we raised the policy rate, a lot of people, including GUTA, came after us,\u201d he recalled.<\/p>\n
\u201cThey had all kinds of comments. Analysts were not happy. But we knew exactly what we were doing\u2014and it\u2019s the fruits you are beginning to see.\u201d<\/p>\n
Dr. Mumuni pointed to the Bank\u2019s aggressive liquidity management as central to the disinflation process. \u201cWe tightened monetary policy to reengineer the disinflation process,\u201d he explained.<\/p>\n
\u201cThis is really helping, and we are doing it through our open market operations.\u201d<\/p>\n
He added that the earlier hike in the cash reserve ratio also helped soak up excess liquidity.<\/p>\n
\u201cThat has already sterilised some cedi liquidity in the system.\u201d<\/p>\n
The official\u2019s remarks signal the central bank\u2019s growing confidence that its unpopular but firm measures are yielding results.<\/p>\n
He believes the cedi\u2019s strong showing is proof that policy discipline and market management are starting to restore credibility to Ghana\u2019s macroeconomic framework.<\/p>\n","protected":false},"excerpt":{"rendered":"
First Deputy Governor of the Bank of Ghana, Dr. Zakaria Mumuni, says the cedi’s performance is not only a dramatic reversal from last year but an unprecedented feat since adopting a flexible exchange rate regime. \u201cYear to date, we\u2019ve had the cedi appreciating by over 12%\u2014specifically 12.2%,\u201d he stated on PM Express Business Edition. \u201cThe […]<\/p>\n","protected":false},"author":123457,"featured_media":11046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[3525,3507],"tags":[1156,3542,3543],"class_list":["post-11045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-national","tag-bog","tag-cedi-gains","tag-dr-zakaria-mumuni"],"_links":{"self":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/11045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/users\/123457"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11045"}],"version-history":[{"count":1,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/11045\/revisions"}],"predecessor-version":[{"id":11047,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/11045\/revisions\/11047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/media\/11046"}],"wp:attachment":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}