The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, says the Ghanaian cedi remains one of the strongest performing currencies globally, having appreciated by about 21 percent since the start of the year.
Speaking at the commencement of the 126th meeting of the Monetary Policy Committee in Accra, Asiama said the local currency’s robust performance has placed it alongside major global currencies such as the Russian ruble, Swedish krona, Norwegian krone, Swiss franc, euro and British pound.
He attributed the gains to prudent monetary policy, tight liquidity management, fiscal consolidation measures and increased foreign exchange inflows, which he said have boosted investor confidence in Ghana’s economic outlook despite global uncertainties.
He noted that foreign reserves had risen to $7.5 billion as of August, providing a stronger buffer to support the currency, while inflation had moderated for the fourth consecutive month to 21.9 percent in August, down from 23.2 percent in July.
The governor said the central bank’s monetary tightening measures had helped to anchor expectations and support price stability, while economic growth had shown resilience with GDP expanding by 3.2 percent in the second quarter compared with 2.9 percent in the first quarter.
On the financial sector, he said banks remain well-capitalised and liquid, with the capital adequacy ratio at 17.8 percent, above the regulatory minimum of 13 percent, and non-performing loans improving to 15.1 percent from 17.3 percent a year ago. Asiama stressed that the central bank would continue to ensure stability in the banking sector while supporting credit growth to the private sector.
He also cautioned against speculative behaviour in the foreign exchange market, warning that the central bank would intervene when necessary to prevent volatility.
The governor reaffirmed the bank’s commitment to maintaining a stable macroeconomic environment to sustain investor confidence and support economic recovery efforts.
