- Bank of Ghana Urges Businesses to Avoid Panic Buying of Dollars
The Bank of Ghana has cautioned businesses, banks and investors against speculative activity in the foreign exchange market, as renewed pressure on the cedi tests the country’s recent exchange-rate stability.
Speaking at the Money Summit in Accra, Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, said market participants must align foreign currency transactions with genuine commercial needs rather than panic-driven expectations of depreciation.
“The fundamentals of this economy do not reward speculation against our currency,” she said. “We urge every actor banks, importers, exporters and investors to transact on genuine and present needs, not out of panic.”
Her remarks come as the cedi shows fresh signs of weakness after months of relative stability.
The local currency depreciated by 0.94 per cent week-on-week against the US dollar at the close of last week, while also weakening against the pound sterling and the euro. Its year-to-date depreciation against the dollar has widened to 10.14 per cent.
The central bank, however, insists that Ghana’s external buffers remain strong enough to absorb short-term volatility.
Mrs Asante-Asiedu said foreign exchange reserves continue to improve, providing support for monetary stability, market confidence and the broader recovery effort.
Analysts say the Bank of Ghana’s latest warning reflects growing concern within policy circles over renewed speculative demand for dollars, particularly from businesses attempting to hedge against future currency uncertainty.
According to the central bank, speculative hoarding of foreign currency risks distorting market pricing, increasing exchange-rate pressures and undermining efforts to keep inflation under control.
Mrs Asante-Asiedu pointed to the experience of 2025, when traders who built up foreign currency positions during periods of uncertainty later suffered losses after the cedi staged a sharp recovery.
“We all saw the lessons plainly last year,” she said. “Those who bet against the cedi and hoarded foreign currency soon found themselves unwinding at a loss as the currency staged one of the world’s strongest recoveries.”
The Bank of Ghana believes disciplined market behaviour will be critical to sustaining recent macroeconomic gains, including easing inflationary pressures, stronger reserve accumulation and improved foreign investor sentiment.
The warning also underscores the central bank’s broader attempt to anchor confidence in Ghana’s economic recovery programme, as authorities pursue fiscal consolidation and tighter monetary management under ongoing reform measures.
When businesses and investors rush into foreign currency without immediate transactional need, they can amplify pressure on the exchange rate, create artificial scarcity and weaken confidence in the local currency.
For the central bank, preserving stability will therefore require both adequate reserves and credible market discipline.
The broader message from the Bank of Ghana is clear: the cedi may be under renewed pressure, but the central bank wants market actors to avoid turning temporary volatility into a self-fulfilling currency crisis.
