BoG’s Monetary Policy Committee to hold emergency meeting over ailing economy

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The Monetary Policy Committee (MPC) of the Bank of Ghana will hold an emergency meeting on Wednesday, 17 August 2022, the Central Bank announced on Monday.

According to a notice issued by the Management and sighted by the meeting aims at reviewing recent developments in the economy.

This comes in wake of the economic downturns of the country typified by the depreciating value of the cedi to major trading currencies especially the dollar, the high inflation and the rising cost of living.

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While the meeting is at hand, the Bank of Ghana has in the meantime put measures in place to strengthen the cedi against the trading currencies which is expected to have cascading effects on the economy.

This comes after the apex bank identified five factors negatively impacting the local currency. Among the factors identified include the strength of the US dollars, Investor reaction to credit rating downgrade, Non-roll over of maturing bonds, the sharp rise in crude oil prices and impact on the oil bills and loss of external financing.

But remedying the situation, the BoG said it introduced the “Gold Purchase Program to increase foreign exchange reserves; Special Foreign Exchange Auction for the Bulk Distribution Company’s (BDCs) to help with the importation of petroleum products; Bank of Ghana is entering into a cooperation agreement with the mining companies to provide BOG with the opportunity to buy gold as when it becomes available”.

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The Management added: “The Bank of Ghana is supporting the banking sector with foreign currency liquidity to help meet demand for external payments. The recently approved USD750,000,000 Afriexim loan facility by Parliament, once disbursed, will boost the foreign exchange position of the country and help restore confidence.

“The Cocoa Loan is expected in the last quarter of the year. This facility will also help provide more foreign currency to help address the cedi depreciation. In the short term, we expect that when the IMF programme is finalized, it will also go a long way to help restore confidence in the economy and drive portfolio flows.”

Meanwhile, the Management, in their notice concerning the upcoming meeting to be held tomorrow, said the decisions taken at the meeting would be communicated to the general public.

“The meeting will conclude with an announcement of the decisions of the committee.”


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