Cedi’s performance real not an illusion, no return to old pattern of depreciation – BoG Governor

The Governor of the Bank of Ghana, Dr. Johnson Asiama has assured that the performance of the Ghana cedi should be seen as real, and not an illusion.

He has warned speculators still holding on to dollars in anticipation of a return to the old pattern of depreciation, insisting “that will not happen”.

 “I will say this plainly; the market has changed. The narrative has changed, and the policy environment has changed”, he emphasized.

Dr. Asiama gave the assurance at a private investor roundtable meeting on the sidelines of the African Development Bank (AfDB) Annual Meetings in Abidjan, Ivory Coast on May 28, 2025.

The programme was organised by the Invest in Africa in partnership with Standard Chartered Bank.

Dr. Asiama described the roundtable event as important in convincing investors about developments in Ghana

“This roundtable represents exactly the kind of engagement we need, direct data-driven, and reform-oriented to unlock greater flows of sustainable finance across the continent”, he said.

Sustaining cedi’s stability

Dr. Asiama further assured that the cedi is entering a new phase of anchoring stability.

This is despite, “global dynamics including a possible rebound in the U.S. dollar or an easing of gold prices could soften external support”, he said.
The Governor further assured global investors that, there is no need to have doubts about the sustainability of the cedi.

“This is because, inflation is declining, reserves are rising, fiscal policy is tightening, and real sector growth is holding steady”, he said.

“These are the fundamentals that give currency markets direction and they are now moving in Ghana’s favour”, he assured.  

Dr. Asiama also highlighted other measures that the Bank of Ghana is implementing to maintain the cedi’s stability, pointing out financial discipline.

“This include enforcing foreign exchange market regulations more rigorously, adding that the days of unmonitored FX transactions, speculative arbitrage, and opaque flows are behind us”.

“We are building a market where FX pricing is fair, flows are transparent, and capital is respected”, he added.

Dealing with investor uncertainty

Dr. Asiama also maintained that sustaining investor confidence remains key despite the current appreciation of the Ghana cedi against the major trading currencies.

“We indeed acknowledge that stabilizing the cedi is only the beginning, but what lies ahead is more complex, that is sustaining confidence, mobilizing long-term capital, and financing our development without undermining our hard-won gains”, he explained.

He observed that as government deepens structural reforms in financial intermediation, public sector governance, welcomes private investors to become partners in Ghana’s long-term economic transformation.

He said Ghana’s economy is recovering journey and is back on a credible path.

“We fully understand that in global finance, trust is the real currency and it must be earned through consistency, transparency, and reform-minded leadership”, he said.

Monetary Policy clarity and investor confidence

Dr. Asiama acknowledged that policy consistency is the most powerful signal the central bank can send to the market.

“In this spirit, at its most recent meeting held just days ago, the Monetary Policy Committee (MPC) of the Bank of Ghana unanimously voted to maintain the policy rate at 28%”.

He explained that the decision “was grounded in a clear and focused objective: to consolidate the gains in disinflation while maintaining confidence in Ghana’s macroeconomic framework”

He noted that the current monetary policy stance will be maintained until inflation expectations are fully re-anchored and headline inflation returns sustainably toward the medium-term target of 8 ± 2 percent.

“The direction of monetary policy in Ghana today   is disciplined, transparent, and data-driven — qualities that are essential for market trust and sustainable capital inflows”.

“Macroeconomic fundamentals are stabilizing and fiscal and monetary policies are aligned, therefore there is no need for us to worry about the outlook”, he said.

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