The Governor of the Bank of Ghana, Dr. Johnson Asiama, has revealed that remittance inflows into the country have declined by nearly 50% as a result of the Ghanaian cedi’s rapid appreciation.
Speaking at the launch of the Bank of Ghana Chair in Finance and Economics at the University of Ghana, Dr. Asiama explained that many Ghanaians living abroad have temporarily halted financial transfers, particularly those intended for local construction and investment projects.
“The appreciation of the cedi so far, Ghanaians are interpreting this differently, and it is part of the problem,” he said. “People who used to send remittances for projects have suddenly stopped, and so we have observed a near 50% decline in remittance inflows.”
The development comes amid a sustained rally of the local currency, which has gained over 40% against the US dollar, 31% against the British pound, and 24% against the Euro.
Analysts have attributed the cedi’s performance to a combination of falling inflation, improved macroeconomic stability, and strong external reserves.
While the surge is generally seen as a sign of economic recovery and rising investor confidence, the unintended consequence has been a shift in remittance behavior among the diaspora.
Dr. Asiama emphasized that the drop in remittances is not necessarily justified, as local project costs are also expected to fall in line with easing inflation.
“If you are doing projects in Ghana, cement prices must also adjust, not so? Inflation is coming down so the prices of those building materials must also adjust. Therefore, on balance, it shouldn’t matter,” he added.
He noted that misinformation or lack of awareness could be contributing to the pullback, suggesting that the Bank of Ghana may need to actively engage diaspora communities abroad.
“Someone told me this morning, we need to do a roadshow across the top remittance-originating countries… most of the countries Ghanaians are in. We need to go and explain to them to continue sending their monies regardless of where the exchange rate is,” he said.
Remittances remain a critical component of Ghana’s foreign exchange inflows, supporting household incomes and contributing to national development. A sustained drop in these transfers could also pose challenges for many families and disrupt ongoing private investment projects.
