The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has expressed optimism that the cedi’s period of extreme volatility against the dollar is nearing its end.

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Speaking to Joy Business on the sidelines of the IMF/World Bank Spring Meetings in Washington D.C., Dr. Asiama reassured that the central bank will continue to take steps to sustain the cedi’s current stability.

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“Going forward, we have enough reserves to maintain the current stability the cedi is enjoying against the US dollar,” Dr. Asiama stated.

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He was, however, quick to clarify, “The Bank of Ghana is not going to operate a fixed exchange rate regime. The cedi is an endogenous variable, and we must allow it to float. What the Bank of Ghana aims to do is ensure there is no excessive volatility.”

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Reasons Behind the Cedi’s Stability

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The Ghana cedi has experienced one of its longest periods of stability against the US dollar in recent times. Since December 2024, the local currency has stayed largely stable, even gaining value against the dollar on some days.

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Data from the Bank of Ghana and some commercial banks show that, as of April 2025, the cedi had appreciated by 2.76 per cent against the dollar.

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Bloomberg’s currency platform reported that as of April 28, 2025, most commercial banks were selling the dollar at GH¢15.58, with some quoting GH¢15.40 today.

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Market analysts credit the cedi’s strength to several factors, including active liquidity support from the central bank and BoG’s Gold Purchase Programme, which has boosted market confidence and helped control speculative trading.

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The International Monetary Fund (IMF) also highlighted Ghana’s stronger-than-expected international reserve buildup.

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According to the Bank of Ghana’s Economic and Financial Data, international reserves reached $9.3 billion at the end of February 2025, significantly exceeding targets set under the IMF’s Extended Credit Facility (ECF)-supported programme.

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Governor’s Perspective on the Cedi’s Performance

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Dr. Asiama outlined key reasons behind the currency’s stability:

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Improved external sector performance, supported by strong remittances and better earnings from gold and cocoa exports.Effective coordination between fiscal and monetary policy ensures that both sides work harmoniously to strengthen economic fundamentals.

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Weaker US dollar performance globally has created favourable conditions for the cedi.He emphasised, “The fiscal side has been supportive of monetary measures, helping to maintain the current development.”

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The Governor of the Bank of Ghana, Dr. Johnson Asiama, has pointed out that the recent Staff Level Agreement with the International Monetary Fund (IMF) has been key in strengthening investor confidence.

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“The Staff Level Agreement with the IMF was like a stamp of approval for the government’s efforts to restore macroeconomic stability,” Dr. Asiama explained.

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He further mentioned that consistent discipline in both government spending and monetary policies has helped to realign market expectations and rebuild trust in the economy.

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Dr. Asiama also shared his optimism about the cedi’s improved performance, saying it would help ease inflation in the coming months.

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“This should be complemented by the monetary measures the Bank of Ghana is implementing to continue driving inflation lower,” he stated.

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