The Bank of Ghana (BoG) has reassured the public that the stability of the cedi will continue, backed by ongoing reforms and strong policy measures.
So far in 2025, the cedi has appreciated by nearly 19%. This rally is largely due to disciplined fiscal policy and tight monetary controls.
Speaking at Wednesday’s 124th Monetary Policy Committee (MPC) meeting, BoG Governor Dr. Johnson Asiamah said reforms will now focus on sustaining foreign exchange inflows and strengthening regulatory oversight in the forex market.
“The cedi’s sharp appreciation between April and May has eased imported inflation and boosted confidence,” he noted. He credited the gains to prudent monetary policy, investor sentiment, and external sector improvements.
However, the Governor also cautioned that economic risks remain. Despite the progress, inflation risks are still present. These include food supply issues in northern Ghana and the Sahel, as well as global price shocks,” he said.
He further pointed to rising geopolitical tensions and global trade disputes, especially US-led tariffs, as possible threats to market stability and capital flows in emerging markets like Ghana.
The MPC meeting comes amid sustained cedi strength and continued efforts to reduce inflation. In March, the committee raised the policy rate by 100 basis points to 28%. According to the Governor, this move was key to anchoring inflation expectations.
With signs of easing global pressures and a stable cedi, analysts expect the committee to maintain the current rate. This would help guide lending costs and support economic recovery.
The MPC meeting ends Friday, May 23, 2025, with a press briefing to announce the policy decision.
