The Governor of the Bank of Ghana, has refuted rumours suggesting that the central bank has been flooding the foreign exchange market with large sums of US dollars to keep the cedi afloat.

Despite the local currency's current streak of stability—one of the longest in recent years and its recent slight appreciation against the dollar, Dr. Asiama insists there’s no secret intervention driving this trend.

In a conversation with George Wiafe on the business edition of PM Express, he credited the cedi’s performance to a combination of solid inflows and key reforms within the forex market, not backdoor market support.

“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 stated.

The central bank, according to him, has not only avoided drawing down on its reserves but has actually been growing them steadily. “Remember our reserves programme is actually going up, you know, by the day. We are building more and more reserves. All that we are doing is strengthening, you know, the surge in inflows,” he explained.

Dr. Asiama pointed out that ongoing changes in how the forex market operates have also bolstered the cedi’s strength. He believes this broader strategy is what’s keeping the currency firm. “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 was quick to clarify that stability doesn’t mean locking the cedi into a rigid position or allowing it to become too strong, which would hurt exporters.

“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. So in real terms, we are observing the trends.”

His goal, he explained, is to maintain the cedi within a sustainable and economically sound range.

“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 ended on a hopeful note, saying, “All I can tell you at this point is the days of excessive volatility of the cedi are certainly coming to an end.”