BoG’s costly stabilisation drive delivers net gains as businesses adjust, Dr Acheampong says
The cost of monetary sterilisation in Ghana’s recent stabilisation effort should be weighed against the tangible gains of lower inflation and improved economic certainty, according to Dr. Theo Acheampong, Technical Advisor at the Ministry of Finance.
Speaking during the NorvanReports and Economic Governance Platform (EGP) X Space Titled, “The Price of Stability: Did BoG’s Loss Deliver Real Gains for Ghana’s Economy?”, Dr. Acheampong argued that while policy interventions initially disrupted segments of the productive sector, the broader outcome has been positive.
His comments come amid heightened scrutiny of the Bank of Ghana’s financial losses, largely attributed to aggressive liquidity management and exchange rate interventions aimed at taming inflation and stabilising the cedi.
Drawing on perspectives from industry particularly contributions by Seth Twum-Akwaboah, Chief Executive of the Association of Ghana Industries Dr. Acheampong noted that the early phase of currency appreciation posed challenges for manufacturers, especially those exposed to regional trade frameworks such as AfCFTA and ECOWAS.
“Whereas the appreciation initially affected some businesses in the manufacturing space, they have been able to adjust,” he said, pointing to the resilience of firms navigating shifting competitive dynamics.
The appreciation of the cedi, while beneficial for macroeconomic stability, temporarily squeezed exporters and altered cost structures within the industrial sector. However, businesses have since recalibrated, adapting to the new policy environment.
Dr. Acheampong maintained that the overall impact of the stabilisation programme has been favourable.
“The net benefit has actually been positive overall for businesses, households, and the economy,” he stated.
The easing of inflationary pressures has improved purchasing power and enhanced predictability for economic actors, reinforcing confidence in the policy direction.
The debate, however, remains centred on the sustainability of such interventions, particularly given the strain on the central bank’s balance sheet. Analysts continue to weigh the long-term fiscal and monetary implications against the immediate gains in stability.
Still, for many within the policy and business community, the evidence increasingly suggests that the price paid for stability though significant has begun to yield dividends across the wider economy.
