The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has stated that the Central Bank cannot predict the rate the cedi will appreciate to, following the steady appreciation of the cedi against the dollar.
During a press conference following the Monetary Policy Committee (MPC) meeting to assess recent economic trends, he remarked, “We don’t have any plan in place that dictates when the cedi reaches a certain level, we must act to facilitate its appreciation.”
He clarified that while the Bank of Ghana is wary of significant currency depreciation, it does not set a specific target for appreciation.
“As much as we want to avoid excessive depreciation of the Ghana cedi, we do not maintain a target rate that we aim to defend vigorously,” he stated.
In response to ongoing market speculation, Dr. Asiama pointed out, “There are many speculations circulating, but keep in mind that the Bank of Ghana has not engaged in that area. We will work to ensure that fluctuations do not become too extreme.”
He emphasized that the Bank is keeping an eye on broader exchange rate trends and has put in measures to stabilise it.
“You might notice some fluctuations, but our priority is to make sure they remain within reasonable limits,” he assured.
The Governor also mentioned factors that are accounting for the cedi appreciation.
“What we are observing with the Ghana cedi is driven by strong reserves, effective monetary policy measures, and positive market sentiments stemming from actions taken on both monetary and fiscal levels,” he explained.
He further noted that market perception is becoming increasingly significant. “We believe that market sentiments are now playing a crucial role in the cedi’s ongoing appreciation,” he remarked.
As per the economic and financial data released by the Bank on May 22, 2025, the cedi has appreciated by 24.1% against the US dollar. Ghana’s international reserves were reported at $10.6 billion at the end of April 2025.
