Holding dollars for returns on cedi no longer a wise move – BoG Governor

Shika Dzidzoamenu 1 month ago

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has cautioned against hoarding foreign currency, warning that holding dollars in anticipation of a depreciation of the cedi is no longer a prudent choice.

Delivering his keynote address at the 29th National Banking and Ethics Conference in Accra, Dr. Asiama, whose remarks were read on his behalf by Mr. Ismail Adam, Director of the Banking Supervision Department, said Ghana’s currency performance reflects deliberate policy reforms that have restored confidence in the economy.

“The market dynamics have changed in reflection of the policy environment, and holding dollars in anticipation of a return to currency depreciation may not be a wise choice,” he stated. “We should all reaffirm our collective responsibility to protect the value and integrity of the currency.”

He disclosed that the cedi has appreciated cumulatively by *37.04% year-to-date, reversing a sharp **19.2% depreciation in 2024* a trend he described as “a powerful signal of improving fundamentals and policy credibility.” Citing a World Bank report, he added that the *cedi remains the best-performing currency in Sub-Saharan Africa* for the first eight months of 2025.

Dr. Asiama attributed this progress to a combination of policy measures, including tighter monetary management, the Gold-for-Reserve Programme, improved remittance flows, and effective foreign exchange supervision.

“Our domestic policy stance is strong enough to cushion global shocks such as a rebound in the US dollar or lower commodity prices,” he said.

He reaffirmed that the central bank would sustain these gains through robust reserve management and continued enforcement in the forex market to ensure fair pricing and transparency.

“The cedi is not just a medium of exchange; it is a symbol of our pride, heritage, and shared aspirations for a prosperous future,” Dr. Asiama declared, urging Ghanaians to support efforts to preserve the currency’s strength and integrity.