Governor of the Bank of Ghana, Dr Johnson Asiama, has assured that the days of sharp and unpredictable swings in the value of the Ghanaian cedi are gradually fading, crediting this to improved inflows and ongoing reforms in the foreign exchange market.

Speaking on the business edition of PM Express with George Wiafe, Dr Asiama dismissed claims that the central bank is heavily intervening in the forex market to support the cedi. “So the stability you are seeing now, it's not because we are intervening in the market. It's not because we are selling reserves for stability. No,” he clarified.

He pointed to a more sustainable strategy involving the accumulation of foreign reserves and a boost in foreign exchange inflows. “Remember our reserves programme is actually going up, you know, by the day. We are building more and more reserves,” he added, stressing that these improvements are reinforcing the currency’s recent gains.

According to Dr Asiama, the strengthening cedi is largely the result of structural changes. “It is the combination of all these factors that you are seeing. And so, so long as we hold that anchor, we'll continue to see stability,” he said, referencing foreign exchange market reforms underway.

He explained that stability does not mean the cedi must always appreciate or maintain a fixed rate. “When we say stability, it doesn't mean the cedi has to be fixed. It doesn't mean that the cedi has to over-appreciate, because that in itself is not good for our exports,” he noted.

Dr Asiama highlighted the importance of maintaining a balanced exchange rate regime. “We want to make sure that the cedi is not misaligned in real terms. It stays within some kind of band... something that is appropriate and consistent with macroeconomic stability,” he said.

Reflecting on the broader picture, he stated confidently, “All I can tell you at this point is the days of excessive volatility of the cedi are certainly coming to an end.”

The cedi has remained relatively stable since December 2024 and has even appreciated slightly in recent days. On May 4, the US dollar was trading just above GH¢14, while the pound sterling and euro were going for nearly GH¢19 and over GH¢16 respectively.

In contrast, the cedi was weaker just weeks earlier. On April 23, the dollar was selling at GH¢15.40, with the pound above GH¢20 and the euro at GH¢17.60.

Earlier in March, Finance Minister Dr Cassiel Ato Forson informed Parliament that the cedi had depreciated by 5.3% against the dollar as of mid-March 2025. This was a marginal improvement compared to the 5.7% depreciation recorded over the same period in 2024.