Cedi gains not fueled by dollar injection – BoG Governor

Governor of the Bank of Ghana, Dr. Johnson Asiama, has dismissed suggestions that the central bank is propping up the cedi by pumping large volumes of dollars into the market.

In an exclusive interview at the IMF/World Bank Spring Meetings in Washington, D.C., Dr. Asiama clarified that the recent stability of the local currency is not due to direct interventions using the country’s foreign reserves.

“The stability we are witnessing now has nothing to do with selling reserves. We are not injecting significant amounts of dollars into the market. What we are doing is strengthening inflows and reforming the foreign exchange market,” he said.

The cedi has enjoyed one of its most stable periods in recent years, even appreciating slightly since December 2024.

As of April 2025, BoG data shows the cedi had gained 2.76% against the US dollar.

Bloomberg also reported increased market confidence, with commercial banks quoting the dollar between GH¢14.38 and GH¢15.58.

Dr. Asiama made it clear that this stability does not signal a shift to a fixed exchange rate regime.

“We remain committed to a market-determined exchange rate. There will be no return to a fixed regime,” he emphasized.

According to the Governor, the cedi’s rebound is being driven by a combination of strong remittance inflows, improved export earnings from cocoa and gold, coordinated fiscal and monetary policies, and a globally weaker US dollar.

“The fiscal side has supported monetary policy, helping to create the environment we see today,” he said.

As speculation continues around the durability of the cedi’s strength, Dr. Asiama insists the central bank’s approach is rooted in structural reforms, not unsustainable interventions.