The Central Bank has no set goal rate for the cedi’s appreciation, according to Dr. Johnson Asiama, governor of the Bank of Ghana (BoG).
At a news conference following the Monetary Policy Committee’s (MPC) meeting to discuss recent economic developments, he said, “We don’t have such a plan on the table that says when the cedi reaches a certain point, we must move to ease the appreciation.”
He clarified that although extreme currency depreciation worries the Bank of Ghana, it does not have a set appreciation target.
“As much as we don’t want to see the Ghana cedi depreciate excessively, we don’t keep a target rate that we want to defend aggressively,” he said.
“You may see some swings, but our focus is to ensure that they are not excessive,” he assured.
The governor also rejected claims that the depletion of reserves is supporting the cedi’s appreciation.
“What we are witnessing with the Ghana cedi is influenced by strong reserves, robust monetary policy measures, and favourable market sentiments based on actions taken on both the monetary and fiscal fronts,” he stated.
He went on to say that market perception was becoming more and more significant. “We think that the cedi’s steady appreciation is now being significantly influenced by market sentiments,” he said.
On May 22, 2025, the Bank published economic and financial data showing that the cedi had gained 24.1% in value relative to the US dollar. By the end of April 2025, Ghana had $10.6 billion in foreign reserves.
The Governor asked for patience in response to worries that the strength of the currency has not resulted in reduced market prices.
“It’s just a matter of time. We also believe that competition may play a significant role in the coming weeks, forcing traders to respond to current market developments,” he noted.
For 2025, the Bank of Ghana has set a 12% end-of-year inflation target. Despite persistent external challenges, Dr. Asiama is certain that this is achievable.
“I don’t think the end-of-year target is ambitious, looking at the policy measures we have undertaken,” he said.
He added that the bank is optimistic Ghana could return to single-digit inflation by the first quarter of 2026. “Looking at current developments and the policy measures in place, we should be able to manage any external developments that could reverse the current disinflation trend,” he said.
Source: newsthemegh.com