Cedi stability assured – BoG Governor
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has assured the public and investors that the outlook for the cedi remains strong and sustainable, citing ongoing monetary policy interventions and improved economic fundamentals.
Speaking at the opening of the Bank’s 124th Monetary Policy Committee (MPC) meeting in Accra on May 21, 2025, Dr. Asiama attributed the recent appreciation of the cedi up 17.17% against the US dollar since January to prudent monetary policy, stronger external sector performance, and improved market sentiment.
“The cedi’s current strength is not a fluke. It reflects deliberate policy measures aimed at ensuring long-term macroeconomic stability, urging Ghanaians and investors to remain confident in the currency’s prospects,” he stated.
He added that the Bank will continue to implement policies to sustain exchange rate stability while ensuring inflation continues on a downward path. Inflation dropped marginally to 21.2% in April 2025 from 22.4% in March.
Dr. Asiama also highlighted key macroeconomic gains, including progress under the IMF’s Extended Credit Facility programme, improved trade balance, rising investor confidence, and the recent upgrade of Ghana’s sovereign credit rating by S&P from Selective Default to CCC+.
However, he cautioned that risks remain. Inflation, he said, is still vulnerable to second-round effects and food supply shocks, while global uncertainties such as geopolitical tensions and US-led tariff disputes could impact commodity prices, exchange rates, and capital flows in emerging markets like Ghana.
To address these risks, Dr. Asiama announced a shift in the Bank’s monetary policy approach, moving from reliance on the unremunerated Cash Reserve Ratio to a more active Open Market Operations strategy, using longer-tenor BoG instruments.
“This will improve liquidity management, enhance policy transmission, and support credit growth in the private sector,” he explained.
Dr. Asiama urged the Committee to carefully evaluate whether the current policy stance remains adequate to drive disinflation without undermining the ongoing recovery.