President John Dramani Mahama has disclosed that the Bank of Ghana (BoG) has withdrawn from intervening in the foreign exchange market, allowing the Ghana cedi to adjust naturally after months of volatility.
Speaking during a media engagement at Jubilee House on Wednesday, the President explained that earlier central bank interventions were necessary to stem sharp depreciation, which had destabilised economic planning and eroded business confidence.
“I believe it is about stopping rapid depreciation of the currency. When you have steep depreciation of about 25 per cent in the first half of 2024, it makes planning difficult,” President Mahama said. “And so yes, Bank of Ghana has been intervening in the forex market, but they’ve withdrawn.”
He assured the public that the current market-driven correction would stabilise the currency at a sustainable level, while government remained committed to keeping any future depreciation within manageable limits.
“The cedi is making an adjustment and I believe it will settle at a certain rate. We’ll make sure that any depreciation that occurs in the value of the cedi is within a margin of about five per cent per annum,” he said.
The remarks come against a backdrop of heightened public scrutiny of the cedi’s performance and speculation about the extent of central bank involvement in the market.
Businesses and households have raised concerns about the impact of exchange rate fluctuations on prices of goods, imports, and long-term contracts.
According to the President, the government’s decision to step back from heavy market interventions reflects confidence in structural reforms being pursued to strengthen the economy.
These include fiscal consolidation, improved revenue mobilisation, and measures to boost foreign exchange inflows from exports and remittances.
The government’s strategy, he added, is to restore public trust in the financial system by anchoring stability around a more predictable exchange rate regime. This, he said, would support long-term investment, trade competitiveness, and macroeconomic planning.
“Stability in the cedi is critical not only for businesses but also for households,” he noted. “Our goal is to ensure a resilient economy where shocks can be managed without panic.”
The cedi, which suffered one of its steepest depreciations in recent history in 2024, has remained a central issue in public debate and a major indicator of economic management performance.
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