ADVERTISEMENT
Get Started
  • About Homebase Tv | Hbtvghana.com
  • Advertise
  • Broadcast Live
  • Disclaimer
  • Privacy & Policy
  • Terms and Conditions
  • Vacancies
  • Contact Us – Connect With Us
Homebase Tv - Hbtvghana.com
  • Home
  • General News
  • Business News
  • Health
  • Life & Style
  • Politics
    • Press Release
    • Parliament
  • Sports
No Result
View All Result
  • Home
  • General News
  • Business News
  • Health
  • Life & Style
  • Politics
    • Press Release
    • Parliament
  • Sports
No Result
View All Result
Homebase Tv - Hbtvghana.com
No Result
View All Result
ADVERTISEMENT
ADVERTISEMENT

Prof Bokpin backs the IMF call to BoG to reduce their FX interventions

Wed, Jul 9 2025 11:47 AM
in Ghana General News
prof bokpin backs the imf call to bog to reduce their fx interventions
0
SHARES
10
VIEWS
Share on FacebookShare on TwitterShare on TelegramShare on Whatsapp
ADVERTISEMENT
Screenshot 2025 06 21 at 9.35.22 AM

Professor of Finance and Economics at the University of Ghana has backed the International Monetary Fund’s (IMF) recommendation for the Bank of Ghana to scale down its foreign exchange market interventions, warning that continued control by the central bank is distorting price signals and fuelling black market activity.

Speaking on Joy FM’s Super Morning Show on Wednesday, July 9, Professor Godfred Bokpin said the central bank’s role as a dominant player in the market is undermining market-led price discovery.

“One of the important functions of the market is what we call price discovery, and that comes about when you allow the forces of demand and supply, both from the demand side and supply side to arrive at a price that reflects the true dynamics of the market,” Prof Bokpin explained.

He cautioned that the Bank of Ghana’s heavy-handed approach in managing the exchange rate was sending the wrong signals to market players.

“At the moment, the central bank, being a regulator, is also a dominant player in the market. To a large extent, it has the upper hand in terms of control of FX and how that FX is spilled over onto the market,” he said.

“So, to that extent, the price signalling effect will come all from the central bank rather than the market playing its discovery role, and that is what we are seeing here.”

ReadAbout

Sky Train scandal: Accused former GIIF officials face court July 23

Reliable funding key to avoiding debt in road projects – Alhassan Suhuyini

See the areas that will be affected by ECG’s planned maintenance on July 10

[embedded content]

Prof Bokpin warned that such dominance creates confusion among market participants about the true value of the cedi, Ghana’s local currency.

“Market participants may have the impression that the true rate is not really the official rate, which is influenced to a large extent by the central bank. They wouldn’t want to transact with that particular rate,” he said.

According to Prof Bokpin, discrepancies between various exchange rates in the country are widening, leading to inefficiencies. He cited current data to demonstrate the spread between rates.

“If you want to sell U.S. dollars at the bank level, you are likely to get maybe around 10.1, some are even doing 9.8. However, if you look at other layers of the market the forex bureaux the price differential is working up to almost 20 percent. In some instances, we looked at data that showed a gap close to 25% . Compared to the black market, the spread is getting close to 35%,” he said.

He noted that such a structure creates multiple exchange rates, with transactions increasingly happening outside the official corridor.

“You are operating a system where there are multiple rates,” he explained. “You then have the official rates sitting with the Bank of Ghana, but the transaction rate will be outside the corridor. And when you do that consistently, you are actually fuelling the development of the black market rather than roping in the transactions within the formal financial system.”

Professor Bokpin urged policymakers to allow the natural inflow and outflow of foreign currency to influence pricing, saying the weight of supply should come from the broader market rather than just the central bank.

“If you compare the multiple entries in terms of supply of FX into the market and you compare that to the intervention of the central bank, the weight of the intervention is more on the side of the central bank. But we should allow the tripling in from the forces of demand and supply to settle the real exchange rate,” he said.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

  • President Commissions 36.5 Million Dollars Hospital In The Tain District
  • You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
  • I Will Lead You To Victory – Ato Forson Assures NDC Supporters

Visit Our Social Media for More

Facebook Notice for EU! You need to login to view and post FB Comments!

About Author

c16271dd987343c7ec4ccd40968758b74d64e6d6c084807e9eb8de11a77c1a1d?s=150&d=mm&r=g

hbtvghana

See author's posts

Discover interesting ones too

Sky Train scandal: Accused former GIIF officials face court July 23

Sky Train scandal: Accused former GIIF officials face court July 23

0
Haruna Iddrisu in Botswana to share Ghana’s TVET progress

Haruna Iddrisu in Botswana to share Ghana’s TVET progress

0

Use technology to develop your skills – Selorm Adadevoh advises young graduates

UK faces rising and unpredictable threat by Iran, report warns

Children queuing for supplements killed in Israeli strike in Gaza, hospital says

Deadly new Russian drone and missile attack hits Kyiv

7 illegal miners arrested at Abora

21-year-old MoMo vendor killed in Ngleshie Amanfro

Reliable funding key to avoiding debt in road projects – Alhassan Suhuyini

See the areas that will be affected by ECG’s planned maintenance on July 10

  • Ghana and Japan agree to pursue UN Security Council reforms

    Ghana and Japan agree to pursue UN Security Council reforms

    0 shares
    Share 0 Tweet 0
  • I resigned because of Prez. Mahama, NDC – former GBA President

    0 shares
    Share 0 Tweet 0
  • Rastafarian student Oheneba Nkrabea graduates from GIS after Achimota saga

    0 shares
    Share 0 Tweet 0
  • We slept in the same bed, but Ken Ofori-Atta’s legacy betrayed our hope – Frank Adu Jnr

    0 shares
    Share 0 Tweet 0
  • Western Region police arrest 44 suspects in major ‘galamsey’ raid

    0 shares
    Share 0 Tweet 0
ADVERTISEMENT
ADVERTISEMENT

Follow Homebase Tv

  • About Homebase Tv | Hbtvghana.com
  • Advertise
  • Broadcast Live
  • Disclaimer
  • Privacy & Policy
  • Terms and Conditions
  • Vacancies
  • Contact Us – Connect With Us

© 2014 Total Enjoyment & Proper News

No Result
View All Result

© 2014 Total Enjoyment & Proper News

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.