The cedi will hold – BoG Governor assures stability

The cedi will hold – BoG Governor assures stability

Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has reassured the public that the recent gains made by the cedi are sustainable, asserting that the local currency is not on the verge of a reversal.

Amid public anxiety following slight fluctuations over the past few days, Dr Asiama addressed concerns directly, noting that short-term movements are normal within a flexible exchange rate regime.

“Now that the cedi has somehow stabilised, we’re seeing some tension. Everyone thinks the cedi is about to reverse its gains. No, it’s not,” he said.

“If we allow the cedi to perform the function it’s supposed to within a flexible exchange rate regime, you will see these movements. It doesn’t mean the world is coming to an end. It will move again.”

The cedi recently became the best-performing currency among its African peers, recording significant gains against major international currencies. These improvements have been attributed to tight monetary policy, declining inflation, and increased export inflows, particularly from gold.

However, minor declines in recent days have sparked a wave of speculative trading, raising fears of a potential reversal.

“These jitters are precisely why we need calm heads,” Dr Asiama stated. “Market fundamentals remain strong, and the central bank is committed to preserving that momentum.”

Speaking at the ABSA-UPSA Quarterly Banking Roundtable, he urged Ghanaians to have confidence in the cedi, warning against informal dollarisation, where services like tuition fees and luxury goods are priced in foreign currencies.

“The cedi can be as strong as any global currency if we commit to it. You don’t need to hold the dollar. The cedi can be as good as any currency. It all depends on what we collectively do with it.”

He emphasised that local behavior often undermines the cedi more than external shocks or inflation.

With inflation trending downward, foreign reserves improving, and the IMF program on track, analysts say Ghana is entering a more stable macroeconomic phase.

The BoG’s renewed focus on currency legitimacy, responsible forex practices, and targeted inflation control will be key to sustaining this momentum.

Dr Asiama concluded with a call to civic responsibility, “We all have a role to play in preserving the cedi. We will do our part at the Bank of Ghana, but you must do yours. When you see someone doing the wrong thing, report it.”

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