Don’t panic, cedi stability will continue – BoG assures

The Bank of Ghana plans to strengthen reforms for the cedi. The local currency has appreciated by nearly 19 percent this year. This increase is due to fiscal discipline and tight monetary policies.

Governor Dr. Johnson Asiamah spoke at the Bank's 124th Monetary Policy Committee meeting. He emphasized the need to sustain foreign exchange inflows. He also mentioned tightening regulatory oversight in the forex market.

Between April and May, the cedi appreciated sharply by nearly 19 percent. This helped ease imported inflation pressures and restore public confidence. The appreciation results from prudent monetary policy and improved market sentiment.

However, Dr. Asiamah noted that economic challenges still exist. The inflation outlook is improving but remains vulnerable to various factors. These include food supply constraints from northern Ghana and external price shocks.

Geopolitical tensions and global trade dynamics add to market uncertainty. Recent US-led tariff disputes could affect commodity prices and financial flows in emerging markets like Ghana.

The Monetary Policy Committee is meeting during a period of cedi strength against the US dollar. In March, they raised the policy rate by 100 basis points to 28%. This was necessary to anchor inflation expectations.

With signs of currency stability, there may be a retention of the policy rate. This aims to guide lending rates and support overall economic recovery. The meeting will conclude on Friday, May 23, 2025, with a press briefing on new policies.