The Governor of the Bank of Ghana, Dr. Johnson P. Asiama, has emphasised that Ghana’s recent foreign exchange gains and the remarkable strengthening of the cedi must be consolidated through deep structural reforms rather than relying solely on short-term policy interventions.
Delivering the keynote address at the Graphic Business/Stanbic Bank Breakfast Meeting held on Monday, July 14, 2025, at the Labadi Beach Hotel, Dr. Asiama said while the cedi has appreciated by over 42% year-to-date as of June 2025, sustaining this stability requires addressing the underlying structural weaknesses of the economy.
“Sustaining forex gains is a far more complex task than achieving them. It requires anticipating headwinds, managing contradictions, and addressing deeply embedded structural challenges,” he stated.
He explained that Ghana’s foreign exchange stability remains heavily dependent on a narrow commodity export base comprising gold, cocoa, and oil, exposing the country to global price shocks beyond its control. For instance, he noted that current high gold prices, driven by geopolitical tensions such as the Iran-Israel conflict, have boosted export earnings significantly, but a correction in global prices could quickly narrow Ghana’s trade surplus and place renewed pressure on the cedi.
Dr. Asiama argued that while prudent monetary policy, fiscal consolidation, and the IMF-supported programme have contributed to current macroeconomic stability, true sustainability will come from economic diversification, value addition, and export base expansion.
“We must move beyond raw commodity dependence. In cocoa, it is time to scale value-added processing, branding, and retail export chains. In gold, we must accelerate in-country refining and bullion storage. In oil and gas, investment in a petrochemical industry is now imperative,” he said.
He also called for investment in non-traditional exports such as information technology, digital finance, education services, architecture, and creative industries, noting that these sectors can generate stable forex, create high-quality jobs, and diversify Ghana’s revenue streams.
Dr. Asiama further highlighted the need for behavioural change among businesses and the public to reduce dollarisation, enforce legal tender laws, and build confidence in the cedi to support long-term forex stability.
“It is not enough to stabilise the cedi. The real measure of success is whether we can translate forex stability into broad-based economic transformation, one that empowers businesses, creates jobs, and lifts the productive capacity of the nation,” he emphasised.
The breakfast meeting, themed “Sustaining Forex Gains: Business and Economic Impact,” brought together policymakers, financial sector leaders, and the business community to deliberate on strategies to consolidate Ghana’s macroeconomic recovery and drive inclusive growth.
Source: Starrfm.com.gh
