As part of efforts aimed at strengthening the stability of its currency, the cedi, the central bank of Ghana known as Bank of Ghana (BoG) has launched a platform for commercial banks to use in the trading of forex in a real-time manner. Bank sources say that the move is part of its plans to ensure the continued stability of the local currency against its major trading partners. Known as the Refinitiv Matching Platform, analysts say that the apex bank wants to use a transparent trading system to create stable pricing for the local currency.
Speaking on the development, the Governor of the Bank of Ghana, Dr Ernest Addison said that the launch of the platform is an addition to the number of measures the bank has undertaken to fulfill its mandate of ensuring a stable local currency. “The adoption of this platform is key to deepening the local FX market, and we, therefore, expect full adoption from every bank. I expect this platform to play an effective role in further transforming the interbank market into a deeper, liquid and more efficient one which would, in turn, support the central bank’s mandate of price and financial stability,” Dr Addison stated.
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He further stated that in the future, other major stakeholders in the country’s foreign exchange market such as the Bulk Oil Distribution Companies, mining firms and others, would be granted access to the platform, so they can see in real-time the trading position of the cedi against the other currencies.
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Explaining how Refinitiv Match Platform works, the Head of Financial Markets at the Bank of Ghana, Steve Opata, said that the Refinitiv Match Platform allows banks to trade a minimum lot of $250,000 with settlement done instantly as against the previous system where settlement is done over the counter. The platform comes at a time the local currency has appreciated by about 3 percent against the US dollar since the start of the year.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry