Ghanaians might soon experience a decrease in the prices of goods and services, following the recent robust performance of the cedi.
This year, the cedi has appreciated by 24.1% against the US dollar and has also made significant gains against the pound and euro. It currently trades at GH₵11.85 to the dollar, GH₵15.84 to the pound, and GH₵13.34 to the euro.
From March 12 to May 12, the cedi appreciated from GH¢15.53 to GH¢13.09 per dollar, with similar trends observed with other currencies.
Governor of the Bank of Ghana, Dr. Johnson Asiama has said the appreciation of the cedi will gradually reduce import expenses, which should be evident in pricing.
During a media briefing following the Monetary Policy Committee meeting on May 23, 2024, Dr. Asiama stated, “Certain goods were acquired at a higher cost, so it takes time for prices to adjust. However, with increased competition, that adjustment will occur.”
Dr. Asiama dismissed worries that the cedi’s rise could negatively impact exports, emphasizing that the increase is not substantial enough to jeopardize trade competitiveness.
Dr. Asiama mentioned recently that Ghana’s early macroeconomic recovery is due to decisive monetary policy measures and strengthening fundamentals.
While speaking at the 124th Monetary Policy Committee (MPC) meeting in Accra, he linked the reduction in inflation to 21.2% last month to the March policy rate increase to 28%, stability in the exchange rate, and a decrease in non-food inflation.
“Initial evidence indicates that this action has played a role in reducing inflation momentum and, importantly, the cedi has appreciated by nearly 19 percent between April and May,” Dr. Asiama pointed out. “This has contributed to alleviating imported inflation and restoring public confidence.”
He noted that the cedi’s appreciation reflects enhanced market sentiment, external gains, and sound policy.
