Prices will soon reduce to reflect cedi gains- BoG Governor assures

Governor of the Bank of Ghana, Dr. Johnson Asiama, announced good news for consumers. They can expect a gradual reduction in prices of goods and services. This is due to the recent appreciation of the cedi. The benefits will soon be felt throughout the economy.

Dr. Asiama spoke at a press briefing after the Monetary Policy Committee (MPC) meeting on May 23, 2024. He explained that inflation usually lags behind exchange rate changes. However, the strengthening cedi will ease import-related costs in the coming months.

He noted that some businesses stock goods at higher exchange rates. Therefore, it takes time for prices to adjust after an appreciation. “You will see this adjustment soon,” he assured, “as long as there is competition.”

The cedi has gained nearly 24% this year. Retailers and importers are under pressure to adjust their prices accordingly. This is part of efforts to stabilize the economy.

Dr. Asiama emphasized that the cedi's appreciation should be viewed in context. He dismissed concerns that it could hurt Ghana’s export competitiveness. The MPC believes current gains do not pose risks to trade performance.

He stated, “We want cedi stability in nominal terms.” It’s crucial that real terms do not show persistent appreciation affecting competitiveness. Currently, the local currency has performed strongly against major trading currencies.

This marks a significant turnaround from previous depreciation trends. The cedi has appreciated by 24.1% against the US dollar and 16.2% against the British Pound. It also rose by 14.1% against the Euro according to Bank of Ghana data.

As of May 2025, the cedi trades at about GH₵