Dr. Johnson Pandit Asiama, BoG Governor
The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has issued a caution to the public and business community to rely solely on official data from the central bank when making projections about the Ghanaian cedi.
Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting, Dr. Asiama emphasized the importance of disregarding speculative forecasts circulated by unofficial forex traders, known as “Zamerama”.
“It appears in Ghana, the way we form our expectations when it comes to the exchange rate is to listen to the Zamerama, to listen to the Alhaji in the corner. I think that’s where the problem is,” he said.
Dr. Asiama noted that such speculative activities are not supported by BoG’s published data from its periodic Monetary Policy Committee meetings.
He pointed out that the country’s economic fundamentals reflect a different reality than black market predictions.
“You have a country whose trade surplus has doubled compared to last year. If you have a country whose Current Account has increased from a mere $66 million to over $2 billion in the first quarter of this year, why are you surprised when the exchange rate is showing stability? Look at the data,” Dr. Asiama explained.
He therefore appealed to the media to focus on BoG data when reporting on cedi projections, rather than relying on unsupported forecasts.
“It appears it’s all about what somebody thinks, and then we all go in that direction. So tomorrow, the moment the Zamerama man says the cedi will start depreciating, then everybody will start liquidating. Just look at the data. These things are macroeconomic variables,” he added.
The Governor stressed that movements in the exchange rate are a normal market phenomenon that helps protect the cedi against external shocks.
“In Ghana, we say the exchange rate is going down, and so it keeps going. You notice that trend? I keep saying, no, allow the exchange rate to move. Today it may rise, tomorrow it may come down because it’s an endogenous variable. When it moves, it’s protecting the country against external shocks,” Dr. Asiama said.