The days of unpredictable swings in the value of Ghana’s Cedi are gradually becoming a thing of the past, according to Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG). He revealed that the current stability of the Cedi is not a result of the central bank’s direct intervention by depleting its dollar reserves but rather the outcome of well-thought-out structural reforms.
Dr. Asiama highlighted that the BoG has implemented several foreign exchange market reforms aimed at fortifying the local currency. These measures have contributed to a marked improvement in the performance of the Cedi, which appreciated by 2.76% against the US dollar as of April 2025, according to official data from the central bank. This marks one of the longest periods of sustained stability for the currency in recent years.
“The stability you’re witnessing now isn’t due to us selling off our reserves to prop up the currency. On the contrary, our reserves continue to grow steadily. The stability is primarily a result of bolstered inflows and reforms we’ve initiated in the foreign exchange market,” Dr. Asiama explained.
He emphasized that this approach ensures stability without artificially fixing the exchange rate or forcing the Cedi into an unsustainable appreciation. “When we talk about stability, it doesn’t mean pegging the Cedi or pushing it to over-appreciate. Both scenarios could harm our export competitiveness,” he stated.
Dr. Asiama elaborated further, noting that the BoG is closely monitoring trends to ensure the Cedi’s value aligns with real economic fundamentals. “Our goal is to maintain the Cedi within a range that is both realistic and conducive to macroeconomic stability,” he added.
Looking ahead, Dr. Asiama expressed optimism about the trajectory of the local currency. “All I can say is that the era of excessive volatility for the Cedi is drawing to a close,” he assured.
These developments reflect a broader confidence in the country’s economic management and signal a brighter future for businesses, investors, and citizens alike, who rely on a stable currency to plan and thrive.
Story by: Mercy Addai Turkson #ahotoronline.com
