In a keynote address, the Bank of Ghana’s Governor, Dr. Johnson P. Asiama, set out how the central bank is seeking to sustain recent foreign-exchange gains and translate cedi stability into real-economy benefits. He cited a year-to-date cedi appreciation of over 42% as of June 2025 and gross international reserves of USD 11.1 billion (4.8 months of import cover), alongside improved external balances and an S&P sovereign rating upgrade to CCC+. The speech attributed the turnaround to coordinated policy execution, including a disinflation stance with the monetary policy rate held at 28%, active open market operations to absorb excess liquidity, and discipline in the foreign-exchange market through structured FX auctions and forward guidance, reinforced by fiscal consolidation under Ghana’s IMF-supported programme. It also flagged constraints to sustainability, notably commodity export concentration, seasonal FX demand pressures, entrenched dollarisation and offshore retention of export receipts, and the policy trade-off between currency strength, inflation reduction, and export competitiveness. Looking ahead, the Bank of Ghana plans to continue expanding FX forward auctions and to support development of basic derivatives markets to help firms hedge currency risk. It will also step up enforcement of legal tender laws in sectors where foreign-currency pricing is common, integrate the eCedi rollout with retail payment ecosystems, and finalise a regulatory framework for Virtual Asset Service Providers to bring crypto exchanges and digital asset platforms under formal oversight aligned with AML/CFT rules.
Bank of Ghana 2025-07-15
Bank of Ghana outlines measures to sustain 42% cedi appreciation including expanded FX forward auctions and new oversight for virtual asset providers
In a keynote address, the Bank of Ghana's Governor, Dr. Johnson P. Asiama, outlined strategies to sustain cedi stability, highlighting a 42% cedi appreciation and USD 11.1 billion in reserves. The turnaround is attributed to coordinated policies, including a 28% monetary policy rate, FX market discipline, and fiscal consolidation under an IMF program. Future plans include expanding FX forward auctions, developing derivatives markets, enforcing legal tender laws, integrating eCedi with payment systems, and finalizing a regulatory framework for Virtual Asset Service Providers.