The Governor of the Bank of Ghana, Dr. Johnson Asiama, has stated that the continued decline in interest rates on government Treasury bills could threaten the stability of the cedi.
He was, however, quick to add that the central bank will put in place measures to maintain a balance.
He said there was an ongoing discussion with the finance minister on possible ways of dealing with the situation.
Speaking at the National Economic Dialogue on March 4, Dr. Asiama asserted that while lower T-bill rates are beneficial, they could also lead to exchange rate pressures if not properly managed.
“If you look at our Bank of Ghana bills, you would see that the rates have had to go up—that’s the way managing the macroeconomy works, and therefore, there has to be a balance,” he noted.
“Currently, T-bill rates are coming down, and it is good to see that. However, there is an emerging risk that if we are not careful, we will see pressure on the cedi going up as a result,” he added.
“I will be speaking with the Minister of Finance regularly, and we will try to achieve that balance going forward. We will be transparent,” he added.
His remarks follow a disclosure made by Finance Minister Dr. Cassiel Ato Forson to the effect that Ghana has saved approximately GH¢1 billion due to the reduction in Treasury bill rates.
By: Rainbowradioonline.com/Ghana
