The Bank of Ghana (BoG) has assured the public and investors that the recent strong performance of the Ghanaian cedi is not a flash in the pan, and that strategic reforms will be deepened to maintain its momentum.
So far in 2025, the cedi has gained nearly 19 percent in value, largely due to disciplined fiscal policies and a firm monetary stance.
BoG Governor, Dr. Johnson Asiamah, speaking at the opening of the Bank’s 124th Monetary Policy Committee (MPC) meeting on Wednesday, emphasized that the next phase will prioritize sustaining foreign currency inflows and reinforcing regulation in the forex market.
“The sharp appreciation of nearly 19 percent between April and May has helped curb imported inflation and boost public confidence,” he noted, crediting this performance to a mix of sound policy, positive market sentiment, and stronger external sector dynamics.
However, Dr. Asiamah cautioned that underlying challenges still pose risks to the economy. These include potential second-round inflation effects, food supply issues especially in northern Ghana and the Sahel, and uncertainties stemming from global commodity price volatility and ongoing geopolitical tensions, such as new US-led trade tariffs.
The MPC convenes at a time when the cedi remains robust and inflation, though still high, shows signs of easing.
In March, the central bank raised its policy rate to 28 percent to manage inflation expectations. But with improving currency stability and receding global pressures, analysts anticipate a hold on rates in the upcoming decision this Friday, May 23.
