The Central Bank is standing firm on its commitment to a flexible exchange rate policy, rejecting any suggestion of a fixed target or currency band, even as the cedi shows signs of renewed stability in 2025, the Governor of the Bank said.
The Bank of Ghana Governor, Dr. Johnson Asiama made the remarks during the “Banking the Last Mile” conference hosted by the Ghana Association of Banks and Absa Bank Ghana on Tuesday.
“Let me be clear: we are not pursuing a rigid exchange rate target or a predetermined band. The Bank of Ghana remains committed to a flexible exchange rate regime, one that is anchored in fundamentals, responsive to shocks, and supported by credible policy tools,” Asiama said.
The central bank’s reaffirmation comes as the Ghanaian cedi posts a strong recovery, buoyed by fiscal consolidation under the International Monetary Fund (IMF) programme, slowing inflation, and increased investor confidence. The cedi has appreciated more than 30% year-to-date against the US dollar, a turnaround from its steep depreciation in 2022–2023.
Asiama emphasised that recent gains in exchange rate stability are the outcome of deliberate monetary reforms and not the result of artificial market intervention.
“As we deepen our collective efforts to accelerate digital finance, I understand that many are watching the macroeconomic landscape closely, particularly the performance of the Ghana cedi. Let me take a moment to reaffirm that the recent stability of the exchange rate is not accidental, nor is it the result of artificial interventions,” he said.
“Rather, it reflects the cumulative impact of sound monetary policy, enhanced transparency in the foreign exchange market, and improved external sector fundamentals. The Bank of Ghana has adopted a disciplined, market-oriented approach, reducing its reliance on reserves and instead leveraging a more efficient FX auction framework, enhanced market surveillance, and stricter alignment of foreign exchange demand with real-sector transactions. These measures have curtailed speculative pressures and ensured that foreign exchange flows reflect legitimate trade, investment, and remittance activity.”
The central bank’s FX auction framework, designed to improve price discovery and reduce volatility, has become a key tool in aligning foreign exchange allocations more closely with actual demand, reducing the role of speculative positioning in the market.
In line with this, Asiama said the Bank remains ready to act decisively if necessary, but only in response to disruptive shocks, not to defend any informal target.
“We remain vigilant and fully prepared to act in a timely and measured manner to preserve orderly market conditions and safeguard the broader macroeconomic stability necessary for financial innovation and inclusion to thrive,” he said.
According to the governor, Ghana’s economic recovery is being reinforced by the ongoing fiscal consolidation under its $3 billion IMF Extended Credit Facility programme. The fiscal retrenchment, along with improved external financing flows and disinflation, has supported a more stable macroeconomic environment and helped anchor market expectations.
“The macro-fiscal adjustment being implemented under the IMF-supported programme is yielding results, fiscal discipline is restoring credibility, and external financing flows have improved. Combined with sustained disinflation, positive real interest rates, and resilient export and remittance inflows, these developments have anchored expectations and restored confidence in the currency’s value,” he remarked.
While the cedi’s rally has helped stabilise input costs for businesses and dampen imported inflation, analysts warn that the sustainability of the gains will depend on continued discipline ahead of national elections. Ghana has a long history of fiscal slippage during election years, and pressure is mounting on authorities to preserve the hard-won macroeconomic stability.
For now, the Bank of Ghana is projecting a measured policy stance, one that will continue to favour data-driven decisions and resist politically expedient exchange rate management. Its position reinforces the message that structural reforms, not short-term fixes, will guide monetary strategy in the medium term.
