The Governor of the Bank of Ghana has attributed the recent slight pressure on the cedi to a combination of global shocks and predictable seasonal demand for foreign exchange, stressing that the currency continues to operate within a managed float system.
Speaking at the 130th Monetary Policy Committee (MPC) press briefing, he explained that geopolitical tensions, particularly in the Middle East, have disrupted global energy markets and pushed up crude oil prices, increasing the foreign exchange cost of imports.
He noted that this has intensified demand for dollars locally, especially in the energy sector, where import requirements have become more expensive due to higher global oil prices.
“The same volume of crude oil is costing about twice more by way of foreign exchange,” he said.
Beyond global factors, the Governor pointed to seasonal corporate activity as another key driver of FX pressure. He explained that this period of the year typically sees increased dividend payments by companies, which are settled in foreign currency.
“This is when dividend payments are being made… when those dividends are being sent out they don’t send cedis, they want to send US dollars,” he stated.
He added that demand from corporate entities, alongside energy sector import needs, contributes to short-term pressure on the interbank foreign exchange market.
“Demand from the energy sector and dividend payments by some corporate entities,” he noted.
Despite these pressures, the Governor said the Bank of Ghana is not targeting a fixed exchange rate, but rather allowing the cedi to adjust within a managed float regime, with a focus on preventing excessive volatility.
He emphasized that the central bank continues to build reserve buffers, which help absorb shocks and smooth out fluctuations in the currency market.
According to him, recent movements in the cedi reflect normal market dynamics shaped by global conditions, seasonal flows, and import demand, rather than a structural breakdown in the foreign exchange framework.
