The Bank of Ghana’s decision to forego a customary press briefing after its Monetary Policy Committee (MPC) meeting has raised eyebrows amid mounting concerns over the central bank’s handling of foreign exchange (FX) and economic stability ahead of December’s general elections.
What’s happening
- The MPC will announce its policy decision via a press statement today, breaking from tradition.
- Analysts speculate this shift aims to control messaging during a politically charged period.
- The cedi’s stability has been under scrutiny, with critics accusing the BoG of using reserves to prop up the currency.
State of play
- Inflation climbed to 22.1% in October, reversing prior declines.
- The cedi has depreciated 24.3% against the dollar year-to-date but has shown recent gains, recovering 1.42% last week after BoG injected $199.8 million into the market.
- Reserves stood at $7.5 billion (3.4 months of imports) as of August, raising questions about sustainability.
What They’re Saying
Experts like Dr. Richmond Atuahene view the press briefing’s cancellation as an evasive move. “The metrics are far from ideal—high inflation, depreciating currency. A statement is safer than facing tough questions,” he said.
Zoom out
With a policy rate at 27%, rising inflation, and political pressures, today’s MPC decision could set the tone for Ghana’s economic trajectory heading into 2025. Analysts warn that the apparent FX stability may be short-lived if reserves continue to deplete.
Source: Business and Financial Times
