After the cedi continuously weakened against major international currencies last week, the Governor of the Bank of Ghana (BoG) has swiftly moved to allay fears, insisting that this is not a crisis.
The cedi experienced a sharp depreciation from Wednesday, August 27, to Friday, August 29, 2025. It fell from about ₵10.98 to roughly ₵11.26 against the US dollar, representing a loss of nearly ₵0.27 over just three days. Similar drops occurred against other major currencies as the pound weakened by about ₵0.40, and the euro by approximately ₵0.34, all within the same timeframe
The development has made many businesses and households anxious. There is a brewing fear and panic about whether the BoG is losing the grip it has had on the local currency for months.
Amid the fears and anxiety, the Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has moved quickly to calm nerves, assuring Ghanaians that the situation is under control and far from a crisis.
Adequate Reserves Exist
Responding to the concerns about the cedi’s dip in an interview monitored by The High Street Journal, Dr. Asiama dismissed speculations that the country’s foreign reserves may be running out. Emphasizing that the BoG still has the grip and the fundamentals that held the cedi in the previous months are still intact, the governor noted that the net international reserves haven’t run out.
He added that there are adequate reserves to cover our expenditure as far as the rest of the world is concerned.
However, he admitted that certain practices, such as the abuse of the import declaration system, were straining the system and vowed that the central bank is already fixing these loopholes.
The Governor further stressed that Ghana’s external position remains solid, assuring businesses worried about whether the nation can afford its bills in dollars that the fundamentals are intact, and there is no reason to panic.
Seasonal Pressures, Not Structural Collapse
Dr. Asiama explained that the current pressure on the cedi is not unusual but seasonal, tied to the period just before the cocoa harvest. He explained that historically, before the onset of the cocoa season, the economy always finds this type of pressure in the FX market.
Despite the seasonal effect playing out, he announced that there is a $4 Billion Cocoa inflow on the horizon, which will definitely calm the pressure.
“Remember, we are just entering into the cocoa season, and that’s another factor. If you look at it historically, before the onset of the cocoa season, you always found this type of pressure in the FX market.
So it’s not strange. From what I’m told from the cocoa board, they are expecting over four billion US dollars in cocoa financing, you know, based on what they do now, the pre-financing arrangement. So with all these prospects coming in, why panic? It’s a short-term thing we are contending with,” he assured.
Stability in the Horizon
Aside from the cocoa inflows, there are other measures which the governor noted that will subdue the pressure.
“When these inflows resume, cocoa, remittances, and others, you will begin to see stability return to the market. So why panic?” he asked.
In his words of assurance, Dr. Asiama insisted the current dip in the cedi is temporary.
For businesses and consumers facing rising import prices, Dr. Johnson Asiama is offering hope that recent cedi depreciation is not the beginning of a collapse but a passing storm, with stronger inflows and reforms set to steady the ship.
