Governor of the Bank of Ghana, Dr. Johnson Asiama, has warned that the continued decline in interest rates on government Treasury bills could threaten the stability of the cedi.
However, he assured that the Bank of Ghana (BoG) is actively working to maintain a balance, emphasizing that ongoing discussions with the Finance Minister will be crucial in managing the situation.
The Minister of Finance, Dr. Cassiel Ato Forson, recently disclosed that Ghana has saved approximately GH¢1 billion due to the reduction in Treasury bill rates.
Speaking at the National Economic Dialogue on March 4, Dr. Asiama acknowledged 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.
To address this risk, Dr. Asiama stated that the BoG has had to adjust interest rates on its own bills to maintain macroeconomic stability.
“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 assured.
Source: Citi Newsroom