- The cedi’s recent appreciation is market-driven, aided by strong inflows and monetary discipline, though price drops at retail will lag due to old inventory.
- Ghana’s international reserves now exceed $10 billion, comfortably covering over three months of imports and offering a buffer against external shocks.
- Inflation is projected to fall to 11.9% by end-2025, with the Bank aiming for single-digit inflation (8±2%) by the first quarter of 2026.
- Ghana has resumed partial external debt servicing, with reserve allocations carefully programmed to avoid liquidity stress in the medium term.
- The Bank of Ghana has suspended its Gold-for-Oil participation, but continues the Gold-for-Reserves initiative to strengthen financial buffers.
- Digital transaction policies remain focused on financial inclusion, even as e-levy decisions fall under the Ministry of Finance’s domain.
- Plans for Islamic banking are underway, with licensing expected once legal reforms, such as a Shariah board, are finalized.
- Ghana expects a $360 million IMF disbursement in July, alongside World Bank inflows, to further stabilize the cedi and boost reserves.
- Banks must recapitalize by December 2025, following post-DDEP reforms to reinforce financial sector stability.
- Appreciation of the cedi could trigger utility tariff cuts, easing cost pressures and contributing to continued disinflation.
So What?
The May 2025 MPC briefing signals cautious optimism, with policymakers emphasizing macroeconomic stability, inflation control, and financial resilience while urging patience as reforms take full effect.
