Cedi to Stay Strong: BoG Governor Assures Ghanaians Stability Will Last

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has assured Ghanaians that the stability of the cedi against the US dollar is not a temporary occurrence but a trend the central bank is determined to sustain.

During the IMF/World Bank Spring Meetings in Washington, D.C., Dr. Asiama said the BoG has the tools and reserves necessary to maintain the current gains in the exchange rate market.

“Going forward, we have enough reserves to maintain the current stability the cedi is enjoying against the US dollar,” he stated.

However, Dr. Asiama made it clear that the Bank of Ghana will not fix the exchange rate. “The cedi is an endogenous variable, and we must allow it to float. What the Bank of Ghana aims to do is ensure there is no excessive volatility,” he added.

Since December 2024, the cedi has demonstrated rare resilience, even appreciating slightly against the dollar in early 2025. According to BoG data, as of April 2025, the local currency had gained 2.76% against the US dollar.

Bloomberg data showed that most commercial banks were selling the dollar at GH¢15.58 on April 28, with some even quoting GH¢15.40 — a welcome relief for businesses and households.

Several factors have contributed to this trend. The Bank of Ghana’s active liquidity interventions, its Gold Purchase Programme, and improved export earnings have all helped strengthen the cedi and boost confidence in the local currency.

Additionally, a weaker US dollar on global markets has provided further support.

The BoG Governor also credited Ghana’s strong external sector performance, with rising remittances and improved earnings from gold and cocoa exports. International reserves have surged to $9.3 billion as of February 2025, surpassing targets under the IMF’s Extended Credit Facility programme.

He also pointed to better coordination between fiscal and monetary policy, with the government and the BoG working in tandem to support the economy.

“The Staff Level Agreement with the IMF was like a stamp of approval for the government’s efforts,” Dr. Asiama noted, emphasizing that this agreement had boosted investor trust and helped anchor market expectations.

With inflation still a major concern, the central bank believes the cedi’s strong performance will help ease pressure on consumer prices in the months ahead.