Ernest Addison: Achieving sustainable exchange

Speech by Dr Ernest Addison, Governor of the Bank of Ghana, at the Graphic Business/Stanbic Breakfast Meeting, Accra, 23 April 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

1. Ladies and Gentlemen, let me begin by thanking Graphic Business and Stanbic Bank for the opportunity to speak on the topic: "Achieving Sustainable Exchange Rate: Our Options" This topic is timely-coming at a time that we have successfully emerged out of a sudden bout of volatility in the exchange rate, which generated a lot of debate domestically and also externally. It is my expectation that my brief remarks and subsequently discussions will shape the narrative on currency and exchange rate management in the context of a small open commodity dependent economy that has adopted a flexible exchange rate regime to underpin the conduct of monetary policy.

2. The recent sharp movements in the exchange rate of the Cedi generated considerable debate on the options that we have as a country to deal with the seasonal bouts of depreciation in a more sustainable way.