Cedi Stability Not Permanent; Continuous Discipline and Productivity Required – BoG Governor
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiamah, has warned that the recent appreciation and relative calm of the Ghanaian cedi, though welcome, should not be seen as a lasting victory, stressing that durable exchange rate stability depends on sustained economic discipline and real sector productivity.
He made these remarks on Wednesday during a courtesy visit by the Asantehene, Otumfuo Osei Tutu II, to the Central Bank’s headquarters in Accra, where discussions touched on the recent performance of the local currency.
Dr. Asiamah was responding to an earlier inquiry raised by the Asantehene at Manhyia on the outlook for the cedi, offering an assessment that combined cautious optimism with a clear warning against complacency.
“We are pleased to indicate that the cedi closed the year in a significantly stronger position than many observers would have expected a year earlier,” the Governor stated.
He pointed to figures cited by Forbes magazine, which showed that the cedi ended the year at roughly GH¢10.67 to the US dollar, placing it among Africa’s relatively stronger-performing currencies in 2024.
According to the BoG Governor, the improved exchange rate performance was driven by several reinforcing factors.
“This outcome reflects not just improved market sentiment, but also stronger fundamentals, higher reserves, easing inflationary pressures and renewed confidence in policy direction,” he explained.
Nonetheless, Dr. Asiamah was quick to temper the positive assessment, stressing that recent gains should not be misconstrued as permanent.
“We are deliberately cautious not to mistake progress for permanence,” he cautioned.
He further noted that currency stability is not achieved through declarations but must be continuously earned through sound economic management.
“A currency can only remain strong when the underlying economy is productive, competitive and disciplined,” Dr. Asiamah emphasised.
