The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has assured that Ghana will be able to avoid excessive volatility of the cedi despite rising global uncertainties linked to the Middle East crisis.
According to him, although escalating geopolitical tensions in the Middle East pose risks to global commodity prices and financial markets, the central bank is confident in its ability to manage potential shocks.
“We will be able to avoid excessive volatility of the cedi regardless of external shocks,” he stated.
The Governor explained that recent improvements in Ghana’s macroeconomic fundamentals have strengthened the country’s resilience against external disturbances. These include declining inflation, improved foreign exchange inflows, and a stronger reserve position.
He noted that the Bank of Ghana has put in place a number of policy measures to stabilise the foreign exchange market, including prudent liquidity management and targeted interventions when necessary.
Dr Asiama added that the central bank will continue to closely monitor developments in the Middle East, particularly their impact on global oil prices and shipping routes, which could have implications for inflation and exchange rate stability.
He emphasised that maintaining exchange rate stability remains a key priority for the Bank, alongside its broader mandate of price stability.
The assurance comes amid renewed concerns that tensions in the Middle East could trigger global market volatility and exert pressure on emerging market currencies, including the Ghanaian cedi.
However, the Bank of Ghana believes that with the current policy framework and improved economic conditions, Ghana is better positioned to withstand such external shocks while preserving stability in the foreign exchange market.
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Source: www.myjoyonline.com