Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), has highlighted the persistent volatility of the Ghanaian Cedi despite its recent appreciation against major trading currencies.
The Governor noted that while the Cedi has appreciated by 42 per cent year-to-date as of June 2025, it remained exposed to significant volatility risks.
Speaking at the Graphic Business and Stanbic Breakfast Meeting in Accra, on the theme: “Sustaining Forex Gains: Business and Economic Impact,” the Govenor said that the cedi’s vulnerability stemmed from Ghana’s heavy reliance on a few commodity exports to bolster its current account and foreign reserve strength.
Dr. Asiama pointed out that Ghana’s top export earners gold, cocoa, and oil were highly susceptible to price fluctuations driven by external factors beyond the government’s control.
“For instance, gold prices, which have significantly boosted our export earnings, are currently above US$3,200 per ounce, influenced by geopolitical uncertainty, including the recent Iran-Israel conflict. While beneficial for now, a future price correction could swiftly narrow our trade surplus,” he said.
He further explained that Ghana’s import profile was heavily skewed towards energy, capital goods, and essential commodities, creating seasonal spikes in foreign exchange demand, particularly in the second half of the year.
“Without diversification, even minor shifts in global sentiment or commodity cycles can trigger renewed pressure on the Cedi,” the Governor said.
Dr. Asiama also stressed additional risks, particularly behavioural and policy dilemmas.
He highlighted the delicate balance the central bank must strike between maintaining forex stability without over-tightening liquidity, which could stifle private sector credit and economic growth.
The Governor said the true measure of success was in whether Ghana could translate forex stability into broad-based economic transformation.
GNA
