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 the concerns head-on, noting that short-term movements are normal in any flexible exchange rate regime.
“Now that the cedi somehow has stabilized, we are seeing some bit of tension. Everybody 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 is supposed to perform within the 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, posting significant gains against major international currencies. These improvements have been attributed to tight monetary policy, falling inflation, and higher export inflows—particularly from Gold.
However, minor declines in recent days have sparked a fresh wave of speculative trading, prompting fears of a potential reversal.
“These jitters are precisely why we need calm heads,” Dr. Asiama noted. “Market fundamentals remain strong, and the central bank is committed to preserving that momentum.”
Speaking at the ABSA-UPSA Quarterly Banking Roundtable, he encouraged Ghanaians to trust in the cedi, highlighting the dangers of informal dollarization, where services such as tuition fees or 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 warned that these local behaviors undermine the cedi more than external shocks or inflation.
With inflation on the decline, foreign reserves improving, and the IMF program on course, analysts say Ghana is entering a more stable macroeconomic phase. The BoG’s renewed emphasis on currency legitimacy, responsible FX behavior, and targeted inflation policies will be crucial in maintaining this stability.
Dr. Asiama concluded with a call to civic action: “We all have a role to play when it comes to preserving the cedi. We will do our part at the Bank of Ghana but you must do your part. When you find someone doing the wrong thing, report it.”
