Finance expert, Professor Godfred Bopkin, has backed the International Monetary Fund’s (IMF) recommendation that the Bank of Ghana (BoG) reduce its interventions in the foreign exchange market, warning that excessive control by the central bank is distorting pricing and creating inefficiencies.
His comments follow the IMF Executive Board’s latest review of Ghana’s bailout programme, which unlocked a $367 million disbursement and advised Ghana to allow the forex market to function more freely.
Speaking on Joy FM’s Super Morning Show on July 9, 2025, he explained that the central bank’s active role in setting exchange rates is preventing the market from determining the true value of the Ghanaian cedi through normal supply and demand forces, a process known as price discovery.
“In a functioning market, price should be determined by the interaction between demand and supply. But when the central bank becomes a dominant player, price signals come from the Bank of Ghana instead of the market itself,” he said.
He pointed to the widening gap between official exchange rates and those seen at forex bureaus and on the black market.
While some banks are selling the U.S. dollar at around GH¢10.10, forex bureaus are charging nearly 20% more, and black market traders up to 35% above the official rate.
This, according to Professor Bopkin, reflects a loss of confidence in the official exchange rate, as market participants increasingly believe it does not reflect real conditions.
He cautioned that while the BoG’s actions may provide temporary relief, they risk long-term instability if market fundamentals are continually ignored.
The IMF’s position, he explained, is aimed at restoring market credibility and reducing the presence of multiple exchange rates, which hurt transparency and discourage formal economic activity.
DR/MA
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