The Governor of the Bank of Ghana, Dr. Ernest Addison has reiterated that the Ghana cedi will stabilise against the US dollar and the other major foreign currencies.

According to him, the Central Bank is doing everything possible to keep the exchange rate front stable.

Speaking at the First Bank Ghana Gala night, Dr. Addison said it is impossible for inflation to trend downwards whilst the exchange rate is unstable.

“I am sure you know that the exchange rate stability will be sustained. “It is not possible to continue the disinflation process with exchange rates that are not stable, so implicit in that statement is to give assurance to you all about the stability of the cedi going forward.”

“I am aware that this morning for example, every bank has got a little bit of FX [foreign exchange] from the central bank. Averagely there one or two banks who didn’t need it but I am sure FBN [First Bank Ghana] got probably some of those resources”, he pointed out.

Demand for the dollar and the other major foreign currencies has surged, culminating in a sharp depreciation in recent times.

It is going for about GH¢14.50 to one US dollar GH¢18.00 to one British pound in the retail market.

But Dr. Addison said the Central Bank is keeping a vigilant eye on the developments on the foreign exchange market.

“We are keeping a keen eye on developments on the foreign exchange market”, he mentioned.