The stability of the cedi, the predictability of foreign exchange rates, and the transparency of the FX market are critical for Ghanaian businesses. The Bank of Ghana says all these elements are being strengthened through recent FX reforms designed to support small and medium-sized enterprises (SMEs), boost trade, and encourage investment. By creating a more reliable FX environment, SMEs can plan, price, and expand with greater confidence.
Given this need, Dr. Johnson P. Asiama, Governor of the Bank of Ghana, emphasized the importance of FX stability for business survival. “FX stability and transparency shape pricing, determine competitiveness, and often decide whether a business survives,” he said, highlighting the stakes for SMEs importing machinery, exporting goods, or planning new investments.
To address these challenges, the Bank has introduced measures to deepen transparency and interbank activity, moving away from informal, cash-based transactions that previously distorted price discovery. By improving reporting requirements and promoting interbank trading, exchange rates now better reflect real supply and demand, giving SMEs a more predictable environment for operations.
Complementing these efforts, the reforms are curbing speculative and cash-driven FX demand. Guidelines for large transactions, strengthened anti-money laundering (AML) and know-your-customer (KYC) rules, and stricter reporting requirements are encouraging businesses to transact through formal channels. This reduces volatility and ensures that foreign exchange is available for genuine trade and investment.
Building on this foundation, SMEs will benefit from more predictable access to FX through enhanced auction mechanisms. In addition, the reforms support a broader dedollarisation agenda, promoting cedi-based instruments and trade products. By reducing reliance on foreign currency, businesses can operate more securely, manage costs better, and grow sustainably in the local market.
Dr. Asiama made these remarks during a workshop at the Mövenpick Ambassador Hotel in Accra on September 11–12, 2025, organized by the Ghana Association of Banks in collaboration with Afreximbank, the African Development Bank, and the Trade and Development Bank.
He explained how these reforms connect to the bigger picture of economic growth: “The purpose of these reforms is to equip Ghanaian enterprises, especially SMEs, with a transparent, predictable FX environment that enables them to compete confidently in regional and global markets.” By stabilizing FX conditions, the Bank is laying the groundwork for trade, investment, and long-term prosperity.
Linking FX stability to broader economic goals, the Governor urged banks to innovate beyond traditional lending, including supply-chain finance, risk-sharing tools, and partnerships with development finance institutions. He also encouraged SMEs to embrace formalization, digitization, and compliance with global standards, noting that these steps are essential to access larger, more profitable markets.
