BoG warns inaccurate reporting can fuel cedi volatility

The Bank of Ghana (BoG) has cautioned that reporting foreign exchange movements without adequate context can trigger fear and increase volatility in the currency market.

Second Deputy Governor Mrs. Matilda Asante-Asiedu issued the warning at the Ghana Journalists Association’s World Press Freedom Honours Night 2026 in Accra, where she highlighted the media’s critical role in shaping public understanding of economic developments.

Speaking on recent developments in the foreign exchange market, she explained that fluctuations in the value of the cedi are not unusual under Ghana’s exchange rate regime.

“Ghana operates a managed floating exchange rate regime. In such a system, daily movements, both appreciation and depreciation, are normal. They reflect market activity, not necessarily crisis conditions,” she said.

Mrs. Asante-Asiedu warned that the manner in which such movements are reported can significantly influence public behaviour and market sentiment.

“However, when these movements are reported without proper context, they can trigger unnecessary fear, leading to speculative demand for foreign currency and heightened volatility,” she stated.

She noted that in such circumstances, market sentiment rather than economic fundamentals can temporarily drive behaviour, creating avoidable instability in the foreign exchange market.

The Deputy Governor emphasized that currency stability has direct consequences for households and businesses, affecting the prices of imported goods, transportation costs and the overall purchasing power of consumers.

“Protecting the value of the currency is therefore not the responsibility of one institution alone. It is a shared national responsibility of policymakers, businesses, households, and especially the media,” she said.

Mrs. Asante-Asiedu stressed that the Bank of Ghana depends on the media to accurately explain complex monetary policy decisions and help the public understand economic developments.

“For this reason, we rely heavily on a free and responsible press to help explain our work, anchor expectations, and support national development through our mandate of price and financial stability,” she noted.

She further described the media as a critical partner in shaping how economic policies are understood, adding that responsible reporting contributes to confidence in both the financial system and the broader economy.

The Deputy Governor urged journalists to uphold accuracy and context in their reporting, arguing that public trust remains essential to both media credibility and economic stability.