Government has announced a series of measures aimed at restoring economic stability and easing the financial burden on businesses and households.
Speaking during the presentation of the 2025 Budget Statement and Economic Policy on March 11, Finance Minister Dr. Cassiel Ato Forson outlined key strategies to support the Bank of Ghana’s monetary and exchange rate policies.
Dr. Forson highlighted several measures to strengthen the cedi and ensure foreign exchange (FX) stability, including:
- Establishment of the Ghana Gold Board (GoldBod): The new institution will enhance gold reserves and improve foreign exchange generation to support cedi stability.
- Continued FX Forward Auctions: The Bank of Ghana (BoG) will persist with foreign exchange forward auctions, helping to smoothen currency volatility.
- Fiscal Consolidation: The government’s reduction in public sector spending and lowering of the fiscal deficit will help ease pressure on the exchange rate.
- Import Substitution under the 24-Hour Economy Policy: A renewed focus on domestic production will reduce reliance on imported goods, decreasing demand for foreign currency.
The Finance Minister also detailed specific measures to address rising inflation, emphasizing that reducing price volatility is key to economic recovery. The strategies include:
- Boosting Food Production: The Agriculture for Economic Transformation Agenda (AETA) will increase food supply, helping to bring down food inflation.
- Targeted Interventions on High-Impact Items: Government will focus on reducing costs in transportation, utilities, and essential goods, which have significant weight in the Consumer Price Index (CPI).
- Tighter Fiscal Discipline: A commitment to cut government borrowing and lower the fiscal deficit will help control inflationary pressures.
- Exchange Rate Stability to Combat Imported Inflation: As the cedi stabilizes, the cost of imported goods and fuel is expected to decline, reducing inflation further.
- Monetary Policy Adjustments: The Bank of Ghana will maintain a firm monetary stance, using liquidity management tools to support inflation reduction efforts.
Dr. Forson reiterated the government’s commitment to ensuring economic stability, adding that these measures will help bring relief to businesses and households while restoring investor confidence in the Ghanaian economy.
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