Cedi’s Appreciation Not an Illusion, the Market Has Fundamentally Changed, Says BoG Governor
Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has assured investors and market watchers that the ongoing stability of the Ghana cedi is underpinned by sound macroeconomic fundamentals and must not be viewed as artificial or temporary.
Speaking at a private investor roundtable on the sidelines of the African Development Bank (AfDB) Annual Meetings in Abidjan, Ivory Coast, on Tuesday, May 28, 2025, Dr. Asiama emphasized that the prevailing foreign exchange environment had fundamentally shifted.
“I will say this plainly; the market has changed. The narrative has changed, and the policy environment has changed,” Dr. Asiama stated, warning currency speculators against betting on a return to the cedi’s historical pattern of depreciation.
The high-level engagement, organised by Invest in Africa in partnership with Standard Chartered Bank, brought together investors, policymakers, and development partners to discuss sustainable financing opportunities across the continent.
Describing the meeting as crucial in shaping investor sentiment, Dr. Asiama noted, “This roundtable represents exactly the kind of engagement we need—direct, data-driven, and reform-oriented—to unlock greater flows of sustainable finance across the continent.”
Fundamentals Driving Cedi Stability
Dr. Asiama noted that the cedi is entering a new phase of anchored stability supported by improving macroeconomic indicators. Despite external risks such as a potential rebound in the U.S. dollar and declining gold prices, he maintained that the local currency’s current trajectory is sustainable.
“There is no need to have doubts about the cedi’s durability,” he said, citing declining inflation, rising foreign reserves, fiscal consolidation, and steady real sector growth as strong pillars backing the currency.
“These are the fundamentals that give currency markets direction, and they are now moving in Ghana’s favour,” the Governor added.
He further revealed that the central bank is intensifying regulatory enforcement in the foreign exchange market to eliminate speculative behaviour and ensure greater transparency.
“We are enforcing FX market regulations more rigorously. The days of unmonitored transactions, speculative arbitrage, and opaque flows are behind us,” Dr. Asiama stressed.
Restoring and Sustaining Investor Confidence
While acknowledging the recent appreciation of the cedi, Dr. Asiama underscored the importance of sustaining investor confidence beyond short-term gains.
“Stabilising the cedi is only the beginning. What lies ahead is more complex—sustaining confidence, mobilising long-term capital, and financing our development without undermining our hard-won gains,” he explained.
He also highlighted the government’s structural reform agenda, which he said is deepening financial intermediation and improving public sector governance to attract long-term private capital.
“We fully understand that in global finance, trust is the real currency—and it must be earned through consistency, transparency, and reform-minded leadership,” Dr. Asiama said.
MPC Holds Policy Rate at 28% to Consolidate Gains
Touching on monetary policy, the Governor reiterated that consistency remains the most powerful signal the central bank can send to investors. He disclosed that the Monetary Policy Committee (MPC) of the BoG, at its most recent meeting, unanimously voted to maintain the policy rate at 28%.
“The decision was grounded in a clear and focused objective: to consolidate the gains in disinflation while maintaining confidence in Ghana’s macroeconomic framework,” he said.
He further noted that the current stance will be maintained until inflation expectations are fully re-anchored and headline inflation returns sustainably to the medium-term target of 8 ± 2 percent.
“The direction of monetary policy in Ghana today is disciplined, transparent, and data-driven—qualities that are essential for market trust and sustainable capital inflows,” Dr. Asiama added.
According to him, the alignment of fiscal and monetary policy is now supporting macroeconomic stability, reinforcing a positive outlook for the Ghanaian economy.
