The Governor of the Bank of Ghana, Dr Johnson Asiama, has dismissed speculation that the central bank is injecting large volumes of US dollars into the foreign exchange market to stabilise the Ghanaian cedi.
The cedi has recently experienced one of its most sustained periods of stability in years. Since December 2024, the currency has not only held its ground but has also appreciated slightly against the US dollar in recent days.
Speaking on the business edition of PM Express with George Wiafe, Dr Asiama attributed the cedi’s recent gains to strong inflows and ongoing reforms in the foreign exchange market.
“So the stability you are seeing now, it’s not because we are intervening in the market. It’s not because we are selling reserves for stability. No,” Dr Asiama said.
He noted that the central bank’s reserves programme is actually improving. “Remember our reserves programme is actually going up, you know, by the day. We are building more and more reserves. All that we are doing is strengthening, you know, the surge in inflows.”
Dr Asiama pointed to a number of foreign exchange market reforms currently being implemented, which he believes are contributing to the cedi’s resilience.
“It is the combination of all these factors that you are seeing. And so, so long as we hold that anchor, we’ll continue to see stability.”He said.
He also clarified the Bank’s position on currency stability. “When we say stability, it doesn’t mean the cedi has to be fixed. It doesn’t mean that the cedi has to over-appreciate, because that in itself is not good for our exports. So in real terms, we are observing the trends.”
Dr Asiama stressed that the Bank’s aim is to ensure the cedi remains aligned within a reasonable range consistent with macroeconomic stability.
“We want to make sure that the cedi is not misaligned in real terms. It stays within some kind of band… something that is appropriate and consistent with macroeconomic stability.” He stated.
He concluded with optimism, stating, “All I can tell you at this point is the days of excessive volatility of the cedi are certainly coming to an end.”
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