The Bank of Ghana (BoG) has asked businesses and other economic actors to base their financial decisions on prevailing market fundamentals rather than speculation, as monetary authorities seek to sustain recent gains in exchange rate stability.
According to the central bank, aligning transactions with genuine demand and underlying economic conditions will help preserve the stability of the cedi and reinforce broader macroeconomic improvements.
Speaking at the Money Summit, Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, stressed the need for responsible market behaviour, warning that speculative activities can undermine confidence and create unnecessary pressure on the foreign exchange market.
“The fundamentals of this economy do not reward speculation against our currency. I urge every actor, because we’ve seen that semblance in the market, whether you’re a bank, you’re an importer, you’re an exporter, you’re an investor, to transact on the genuine and present needs, not out of fear and panic. Because, as you have heard, our reserves continue to build, and they are there as buffers to help us support this economy.”
The caution comes amid renewed demand pressures on the cedi. By the close of last week, the local currency had depreciated by 0.94% week-on-week against the US dollar, while weakening by 0.70% against the British pound and 1.24% against the euro. This pushed the cedi’s year-to-date loss against the dollar to 10.14%.
She further noted that despite this, recent improvements in macroeconomic indicators have helped strengthen the cedi and restore stability to the economy, making it important for businesses and market participants to support these gains through prudent decision-making.
According to Mrs. Asante-Asiedu, transactions driven by actual business needs and supported by prevailing economic conditions are crucial to maintaining stability in the foreign exchange market and ensuring that recent progress is sustained.
“We all saw the lessons plainly last year. Those who bet against the cedi and hoarded foreign currency soon found themselves on the wrong side of the trade, unwinding at a loss as the currency staged one of the world’s strongest recoveries through 2025. And the traders amongst us will tell you, there was a time when people who had held now began to dump.”
Her comment is important because the cedi has recorded one of its strongest performances in recent years, supported by improved foreign exchange inflows, stronger reserve buffers and increased confidence in the economy.
The central bank believes that avoiding speculative demand for foreign currency and allowing market fundamentals to guide decisions will contribute to a more stable exchange rate environment, lower inflationary pressures and stronger economic resilience.
