Financial institution of Ghana Governor (BoG), Dr. Johnson Asiama, says the cedi’s days of extreme volatility towards the greenback are coming to an finish.
Chatting with Pleasure Enterprise’ on the sidelines of the IMF/World Financial institution Spring Conferences in Washington D.C., Dr. Asiama assured that the central financial institution would proceed implementing measures to protect the present stability of the Ghana cedi.
“Going ahead, now we have sufficient reserves to take care of the present stability the cedi is having fun with towards the US greenback,” Dr. Asiama said.
Nonetheless, he was fast so as to add, “The Financial institution of Ghana is just not going to function a hard and fast alternate charge regime.
The cedi is an endogenous variable, and we should permit it to drift. What the Financial institution of Ghana goals to do is guarantee there is no such thing as a extreme volatility.”
Causes Behind the Cedi’s Stability
The Ghana cedi has recorded certainly one of its longest intervals of stability towards the US greenback in current instances. Since December 2024, the native foreign money has remained largely steady, even appreciating towards the greenback on some days.
Knowledge from the Financial institution of Ghana and a few industrial banks present that, as of April 2025, the cedi had appreciated by 2.76 per cent towards the greenback.
Bloomberg’s foreign money platform reported that as of April 28, 2025, most industrial banks have been promoting the greenback at GH¢15.58, with some quoting GH¢15.40 right now.
Market analysts have attributed the cedi’s resilience to a number of components, together with energetic liquidity assist from the central financial institution and BoG’s Gold Buy Programme, which has boosted market confidence and curbed speculative actions.
The Worldwide Financial Fund (IMF) additionally highlighted Ghana’s stronger-than-expected worldwide reserve buildup.
In keeping with the Financial institution of Ghana’s Financial and Monetary Knowledge, worldwide reserves reached $9.3 billion on the finish of February 2025, considerably exceeding targets set underneath the IMF’s Prolonged Credit score Facility (ECF)-supported programme.
Governor’s Perspective on the Cedi’s Efficiency
Dr. Asiama outlined key causes behind the foreign money’s stability:
- Improved exterior sector efficiency, supported by sturdy remittances and higher earnings from gold and cocoa exports.
- Efficient coordination between fiscal and financial coverage ensures that each side work harmoniously to strengthen financial fundamentals.
- Weaker US greenback efficiency globally has created beneficial circumstances for the cedi.
He emphasised, “The fiscal facet has been supportive of financial measures, serving to to take care of the present improvement.”
Influence of the IMF Programme
The BoG Governor additionally famous that the current Employees Degree Settlement with the IMF has performed an important position in boosting investor confidence.
“The Employees Degree Settlement with the IMF was like a stamp of approval for the federal government’s efforts to revive macroeconomic stability,” Dr. Asiama defined.
He added that self-discipline on each the fiscal and financial fronts continues to assist reset market expectations and restore confidence.
Influence on Inflation
Dr. Asiama expressed optimism that the cedi’s improved efficiency would contribute to an extra slowdown in inflation within the coming months.
“This needs to be complemented by the financial measures the Financial institution of Ghana is implementing to proceed driving inflation decrease,” he said.
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