Finance Minister Dr. Cassiel Ato Forson has outlined a series of strategic reforms aimed at stabilizing inflation and strengthening the cedi against foreign currencies. These measures will complement the Bank of Ghana’s monetary and exchange rate policies to enhance economic stability. Presenting the 2025 Budget Statement in Parliament, Dr. Forson noted that the reforms will reinforce economic stability and fiscal discipline.
Key initiatives include the establishment of GoldBod, a gold-backed reserve system designed to boost forex accumulation and support the cedi. Additionally, the Bank of Ghana’s FX forward auctions will continue to ensure liquidity and exchange rate stability. Fiscal consolidation efforts, including reduced public sector spending and deficit control, will further ease pressure on the exchange rate.
“Our import substitution drive under the 24- Hour economy involving the domestic production of key products originally imported will reduce imports and related FX requirement, boding well for FX stability”. He stated.
To curb inflation, the government will roll out interventions under the Agriculture for Economic Transformation Agenda to boost food production and lower food prices. Policies targeting high-weighted Consumer Price Index (CPI) components—such as transportation and utilities—will aim to reduce costs for households. Improved exchange rate stability is expected to mitigate imported inflation and fuel price hikes.
The government’s aggressive fiscal consolidation strategy, coupled with the Bank of Ghana’s liquidity management interventions, is expected to support the broader disinflation process. Additionally, the 24-hour economy initiative, focused on domestic production of key imported goods, is poised to lower the country’s forex demand.
These measures, according to Dr. Forson, reflect the government’s commitment to strengthening macroeconomic resilience and fostering sustainable growth.
