Dr. Johnson Asiama
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has assured the public that the outlook of the cedi will be sustainable, hence no need for the public to panic about its stability in the long term.
The Governor made this known when he addressed members at the 124th Monetary policy Committee meeting (MPC) at the Bank of Ghana yesterday in Accra to review macroeconomic developments in the country.
Dr. Asiama said the Cedi’s appreciation is based on current monetary policy measures taken by the Central Bank to check inflation and continue to strengthen the cedi.
He stated that the appreciation of the cedi reflects a combination of factors, including prudent monetary policy, improved market sentiment, and external sector gains.
He said there are also encouraging signs of macroeconomic progress as a result of the Staff-Level Agreement with the IMF on the fourth Review although some prior actions remain outstanding.
Dr. Asiama added that the current geopolitical tensions and evolving global trade dynamics, including the recent US-led tariff disputes could affect commodity prices, exchange rates, and financial flows in emerging markets like Ghana.
He said the BoG is also transitioning from reliance on the unremunerated Cash Reserve Ratio to a more active Open Market Operations regime, including the use of longer-tenor BoG instruments.
That he explained is intended to enhance policy transmission, improve liquidity management, and allow greater room for credit expansion to the private sector.
According to the Governor, the country’s external reserves have improved, including, “the trade balance which has improved, as consumer and business confidence indices are rising steadily”.
The committee is expected to deliberate on measures to maintain the gains while working to reduce inflation, which slowed marginally to 21.2 percent in April 2025 from 22.4 percent in March, 2025.
By Ebenezer K. Amponsah