The First Deputy Governor of the Bank of Ghana, Dr. Zakaria Mumuni, has defended the central bank’s recent monetary policy decisions, attributing the cedi’s strong performance in 2025 to deliberate and well-calibrated strategies.
Dr. Mumuni highlighted the Ghanaian cedi’s appreciation of 12.2% against the US dollar so far this year — a sharp reversal from the same period in 2024, when the currency had depreciated by about 13%.
“This is perhaps unprecedented since the adoption of the flexible exchange rate regime,” he noted. “It reflects one of the most effective policy mixes the Bank has implemented in recent memory.”
He emphasized that the turnaround is largely the result of domestic policy interventions rather than favorable external conditions.
“The improvement is not just luck or global trends — it’s a direct result of targeted measures we’ve introduced,” Dr. Mumuni explained. “The decisions we took were tough but necessary.”
Among the key moves was a hike in interest rates and tighter monetary policy — steps that initially drew criticism from business groups like GUTA and market analysts.
“When we raised the policy rate, we faced serious backlash,” he recalled. “But we knew exactly what we were doing. The results speak for themselves.”
Dr. Mumuni credited aggressive liquidity management and earlier increases in the cash reserve ratio for helping to control inflation and stabilize the currency.
“These tools have absorbed excess liquidity and supported the disinflation process,” he said, adding that ongoing open market operations continue to reinforce stability.
The Bank of Ghana now sees the cedi’s performance as evidence that firm, disciplined policy can restore confidence in Ghana’s macroeconomic fundamentals.
“We’re seeing the fruits of those tough decisions,” Dr. Mumuni concluded. “It’s a sign that market discipline is returning — and credibility is being rebuilt.”
