Cedi stability gains remain intact – BoG

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has assured the public that recent fluctuations in the exchange market do not undermine the cedi stability gains recorded in recent months.

He explained that the modest depreciation of the currency reflects seasonal adjustments rather than a loss of progress.

According to the Bank of Ghana, the cedi stability gains remain intact because ongoing reforms, disciplined market activity, and prudent monetary policy continue to support the currency. The central bank says its interventions are designed to protect reserves, anchor investor confidence, and maintain a predictable exchange rate environment.

Speaking at an SME forum organised by the Ghana Association of Banks on Thursday, September 11, Dr. Asiama emphasized that the recent cedi depreciation is not a reversal of stability gains. “The recent modest depreciation, some have wondered, reflects the market adjusting to reforms and seasonal trade patterns. It is not at all a reversal. We expect continued interbank activity and fiscal discipline to restore balance and reinforce long-term stability,” he said.

Dr. Asiama further explained that the Bank of Ghana’s strategy goes beyond defending the cedi, focusing instead on strengthening the economy for the long term. “The purpose of these reforms is not simply to defend the cedi; it is to equip Ghanaian enterprises, especially SMEs, with a transparent, predictable FX environment that enables them to compete confidently in regional and global markets,” he added.

His comments followed the central bank’s new foreign exchange directive, issued on August 20, 2025, which restricts banks from allowing corporates to withdraw cash in foreign currency unless equivalent deposits have been made.

The Ghana cedi has seen its year-to-date gain narrow to 18.51 percent on Tuesday, September 9, 2025, compared with 20.35 percent on Friday, September 5. Analysts attribute this modest depreciation to strong corporate demand amid tight forex supply.

The Bank of Ghana has also scaled back its direct interventions in recent weeks.

Meanwhile, Bloomberg reported that in the third quarter alone, the cedi weakened by 13 percent, reversing part of its earlier rally that briefly made it the best-performing global currency during the second quarter.