Cedi’s performance real not an illusion, no return to old pattern of depreciation - BoG Governor

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has made a statement. He assured that the performance of the Ghana cedi is real and not an illusion.

He warned speculators holding dollars that depreciation will not return. “That will not happen,” he insisted.

Dr. Asiama emphasized that the market and policy environment have changed. He spoke at a private investor roundtable during the African Development Bank (AfDB) Annual Meetings in Abidjan, Ivory Coast on May 28, 2025.

The event was organized by Invest in Africa and Standard Chartered Bank.

Dr. Asiama described the roundtable as crucial for convincing investors about Ghana's developments.

“This roundtable represents direct data-driven engagement to unlock sustainable finance,” he said.

Sustaining Cedi’s Stability

Dr. Asiama assured that the cedi is entering a new phase of stability.

He noted global dynamics could affect external support but urged confidence in the cedi's sustainability.

“Inflation is declining, reserves are rising, and fiscal policy is tightening,” he explained.

“These fundamentals give currency markets direction and are moving in Ghana’s favor,” he added.

He highlighted measures being implemented to maintain cedi stability, including financial discipline.

“This includes enforcing foreign exchange market regulations more rigorously,” he stated.

“We are building a market with fair FX pricing and transparent flows,” he concluded.

Dealing with Investor Uncertainty

Dr. Asiama stressed that sustaining investor confidence is key despite the cedi's appreciation against major currencies.

“Stabilizing the cedi is just the beginning; sustaining confidence is complex,” he explained.

He noted that structural reforms would deepen public sector governance and invite private investors into Ghana’s economy.

Ghana’s economy is recovering and back on a credible path, according to him.

“In global finance, trust must be earned through consistency and transparency,” he said.

Monetary Policy Clarity and Investor Confidence

Dr. Asiama acknowledged that policy consistency signals strength to the market.

At its recent meeting, the Monetary Policy Committee (MPC) voted to maintain the policy rate at 28%.

This decision aimed to consolidate gains in disinflation while maintaining macroeconomic confidence.

The current monetary policy will remain until inflation expectations stabilize around 8 ± 2 percent target range.

“Macroeconomic fundamentals are stabilizing; there’s no need for concern about our outlook,” he stated.