BoG vows more reforms as cedi appreciation boosts confidence

The Ghanaian cedi has appreciated nearly 19 percent from April to May. The Bank of Ghana attributes this to several factors. These include prudent monetary policy, improved market sentiment, and gains in the external sector.

Governor Dr. Johnson Asiamah announced this during the Bank’s 124th Monetary Policy Committee meeting on Wednesday. He stated that the cedi's appreciation helps ease imported inflation pressures. It also helps restore public confidence.

The central bank sees this rally as a result of coordinated fiscal discipline and tight monetary policy. Together, these efforts have stabilized the macroeconomic environment.

However, Dr. Asiamah warned that significant challenges remain. The inflation outlook is improving but still vulnerable to various factors. These include food supply constraints from northern Ghana and external price shocks due to volatile global markets.

There are concerns about how external developments could affect Ghana’s recovery. Geopolitical tensions and global trade dynamics may increase market uncertainty. Recent US-led tariff disputes could impact commodity prices and exchange rates.

To protect recent gains, the Bank of Ghana plans to ramp up reforms. Key priorities will include sustaining foreign exchange inflows and tightening regulatory oversight in the forex market.