The Bank of Ghana has attributed the depreciation of the local currency to the day-to-day pressures on the economy.

Although the cedi appreciated against the dollar during the last two months of 2022, it is currently depreciating further against the dollar.

The cedi which appreciated 8 cedis to a dollar around December 2022 is currently selling for 13 cedis to a dollar.

Appearing before the Public Accounts Committee of Parliament, the Governor of the Bank of Ghana, Dr Ernest Addison said several factors account for the depreciation of the local currency.

“It reflects the movement on a day-to-day basis. If there is additional demand for cedis the currency will be restricted. The Central Bank cannot fix the exchange rate, it depends on what transactions have taken place…like payments to contractors.”

“Typically that kind of payment can move the exchange rate because some of them immediately convert into foreign exchange. So the exchange really reflects a lot of day-to-day pressures in the economy.”

The Governor of the Central Bank also stated that the gold for oil policy by the government would help avoid the pressure on the exchange rate from the private Oil Marketing firms.

Ghana on Monday took delivery of the first consignment of the gold for oil deal reached with the United Arab Emirates.

The 40,000 metric tons of oil arrived at the Tema port on Sunday, January 15, 2023, according to the Ministry of Lands and Natural Resources.

The Energy Ministry, the Bulk Oil Storage and Transportation and Oil Marketing Companies are to formulate plans for its distribution and sale.