Dr. Johnson Asiama, Governor of the Bank of Ghana, reaffirmed that the cedi’s recent gains are sustainable, attributing them to strong macroeconomic policies and structural reforms—but he also cautioned it remains vulnerable due to external dependencies.
The Ghanaian cedi has appreciated by over 42% year-to-date as of June 2025, marking a strong rebound from losses sustained between 2022 and 2024.
This recovery is underpinned by foreign reserves of approximately US$11.1 billion enough to cover nearly five months of imports.
Ghana also posted a US$4.14 billion trade surplus in Q1 2025, with a significant current-account surplus of US$2.12 billion compared to just US$66 million a year earlier.
Bank of Ghana Governor Dr. Maxwell Opoku-Afari Asiama attributes these gains to strengthened external buffers, tight monetary policy, fiscal discipline, and improved investor sentiment.
However, the cedi remains susceptible to external pressures such as fluctuations in commodity prices and seasonal spikes in import demand.
Exporters are being encouraged to invoice in cedis and reinvest their foreign exchange earnings within Ghana to help stabilise the local currency.
As part of a broader de-dollarisation effort, the Bank of Ghana plans to strictly enforce legal tender laws, particularly in sectors like real estate and private education where dollar pricing is widespread.
Companies that align with this agenda may receive incentives such as easier credit access, improved foreign exchange liquidity, preferential procurement treatment, and potential tax reliefs.
The government’s economic strategy is moving from short-term stabilization toward long-term structural resilience to ensure that improvements in the economy positively impact households and businesses.
Key next steps include expanding the Bank of Ghana’s forward auctions and derivatives market to help firms hedge against currency risk and enforcing stricter legal-tender regulations alongside public campaigns to reinforce the use of the cedi in domestic transactions.
These developments mark a turning point in Ghana’s economic fundamentals. However, maintaining the turnaround will require coordinated efforts across government, business, and households.
Continued vigilance is essential to guard against renewed volatility.
Source: Myxyzonline.com
