Governor of Bank of Ghana, Dr. Johnson Asiama
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama has assured that the outlook of the cedi will remain favourable.
This, he explained is based on current monetary policy measures taken by the central bank to check inflation and continue to strengthen the cedi.
He therefore encouraged investors and Ghanaians that the cedi’s recent good performance is sustainable, hence no need to panic about its stability in the long term.
Dr. Asiama gave the assurance in a speech at the opening of the Monetary Policy Committee (MPC) meeting at the Bank of Ghana today, May 21, 2025.
He stressed that the Bank of Ghana will continue to take the necessary measures to sustain the cedi’s stability.
Cedi stability and reasons
Addressing members of the committee at the boardroom of the Bank of Ghana, Dr. Asiama noted that the appreciation of the cedi reflects a combination of factors, including prudent monetary policy, improved market sentiment, and external sector gains.
He pointed out that there are encouraging signs of macroeconomic progress as a result of the “Staff-Level Agreement with the IMF on the Fourth Review of the ECF Programme, and although some prior actions remain outstanding, the trajectory is clearly positive”.
“The recent S&P upgrade of Ghana’s sovereign rating from Selective Default to CCC+ further affirms this progress”, he added.
Dr. Asiama also touched on how the country’s external reserves have strengthened, including “the trade balance which has improved, as consumer and business confidence indices are rising steadily”.
Outlook and challenges ahead
The Governor noted that despite the significant progress made, challenges remain.
He stated for example that the inflation outlook is concern as it remains vulnerable to second-round effects, as well as food supply constraints.
Dr. Asiama highlighted the current geopolitical tensions and evolving global trade dynamics, including the recent US-led tariff disputes.
“This could affect commodity prices, exchange rates, and financial flows in emerging markets like Ghana”, he warned.
Reforms and fresh policy measures
Dr. Asiama assured that the Bank of Ghana has commenced a comprehensive review of its monetary policy implementation framework to mitigate the impact of the challenges outlined.
“We are transitioning from reliance on the unremunerated Cash Reserve Ratio to a more active Open Market Operations regime, including the use of longer-tenor BoG instruments”, he announced.
He explained that, “this is intended to enhance policy transmission, improve liquidity management, and allow greater room for credit expansion to the private sector”.
Focus for the MPC and challenges
To tackle the challenges, Dr. Asiama appealed the committee “to carefully assess whether the current monetary policy stance remains adequate to drive disinflation without undermining the fragile growth momentum”.
This will include
. • observe if exchange rate appreciation is sustainable?
• How durable is the nascent return of market confidence?
• What are the implications of these dynamics for our inflation forecast over the medium term?
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