Governor of the Financial institution of Ghana (BoG), Dr. Johnson Asiama, says the Central Financial institution doesn’t have any particular goal price for the appreciation of the cedi.
Talking at a press convention after the Financial Coverage Committee (MPC) assembly to evaluation current financial developments, he acknowledged, “We don’t have such a plan on the desk that claims when the cedi reaches a sure level, we should transfer to ease the appreciation.”
He defined that whereas the Financial institution of Ghana is worried about extreme foreign money depreciation, it doesn’t preserve a selected appreciation goal.
“As a lot as we don’t wish to see the Ghana cedi depreciate excessively, we don’t hold a goal price that we wish to defend aggressively,” he mentioned.
Addressing ongoing hypothesis on the markets, Dr. Asiama famous, “Individuals are on the market with all kinds of speculations, however keep in mind you haven’t heard the Financial institution of Ghana taking part in in that area. We are going to be certain that volatilities don’t turn out to be extreme.”
He careworn the Financial institution is monitoring broader trade price dynamics, particularly the true efficient trade price.
“You may even see some swings, however our focus is to make sure that they don’t seem to be extreme,” he assured.
Cedi Appreciation and Market Sentiments
The Governor additionally dismissed solutions that the cedi’s appreciation is being propped up by the depletion of reserves.
“What we’re witnessing with the Ghana cedi is influenced by robust reserves, strong financial coverage measures, and beneficial market sentiments primarily based on actions taken on each the financial and financial fronts,” he mentioned.
He added that market notion was taking part in an more and more vital position. “We consider that market sentiments are actually taking part in a big position within the cedi’s sustained appreciation,” he noticed.
In response to financial and monetary information launched by the Financial institution on Could 22, 2025, the cedi has appreciated by 24.1% in opposition to the US greenback. Ghana’s worldwide reserves stood at $10.6 billion on the finish of April 2025.
Responding to considerations that the foreign money’s energy has not translated into decrease market costs, the Governor urged endurance.
“It’s only a matter of time. We additionally consider that competitors could play a big position within the coming weeks, forcing merchants to answer present market developments,” he famous.
Inflation Outlook
The Financial institution of Ghana has set an end-of-year inflation goal of 12% for 2025. Dr. Asiama is assured that is inside attain regardless of ongoing exterior threats.
“I don’t assume the end-of-year goal is bold, wanting on the coverage measures we have now undertaken,” he mentioned.
He added that the Financial institution is optimistic Ghana might return to single-digit inflation by the primary quarter of 2026. “ present developments and the coverage measures in place, we must always be capable of handle any exterior developments that might reverse the present disinflation development,” he mentioned.
Money Reserve Ratio and Non-public Sector Credit score
The Financial institution of Ghana, which maintained the coverage price at 28 %, additionally introduced a revision to the Money Reserve Ratio.
Dr. Asiama defined that “all banks will now preserve their reserves of their respective currencies. Meaning international foreign money reserves for international foreign money deposits and home foreign money reserves for home foreign money deposits.”
The Financial institution additionally famous indicators of restoration in personal sector credit score. “While you take a look at the Ghana Reference Charge, it has been dropping. We are going to proceed with present measures to maintain this decline,” the Governor acknowledged.
Some business analysts count on this transfer to unlock extra lending for the personal sector within the coming months.
Worldwide Reserves Place
Ghana’s worldwide reserves are at present at $10.6 billion, overlaying roughly 4.7 months of imports.
Whereas there have been questions in regards to the Financial institution’s reserve targets, Dr. Asiama clarified: “There is no such thing as a higher restrict goal for now, however we do have what you may name a decrease restrict of three months of import cowl.”
He added, “What we have now now’s ample and ensures our exterior resilience.”
Dr. Asiama was assured about whether or not the present reserves have been adequate to deal with future debt obligations.
“We now have all the pieces programmed. What we have now now’s fairly ample,” he assured.
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