Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), has delivered a message of optimism, declaring that the Ghana cedi is on a strong upward trajectory and urging the nation to seize this moment for broader economic advancement.
Speaking at a Graphic Business/Stanbic Bank Breakfast Meeting on Tuesday, July 15, Dr. Asiama called for collective strategic thinking to consolidate gains and propel Ghana forward.
"The cedi is indeed rising. Let us ensure that our country, Ghana, rises," Dr. Asiama proclaimed to an audience of policymakers, business leaders, and financial experts gathered for the dialogue on sustaining forex
His statement reflects a remarkable turnaround for the Ghanaian currency, which experienced significant depreciation in recent years.
After a challenging period through late 2023 and early 2024, the cedi has demonstrated impressive resilience.
By May 2025, the cedi had reportedly appreciated by roughly 40-50% against the US dollar since January 2025, reaching approximately GH₵10 to the dollar, making it one of Africa's best-performing currencies for the year.
By early July 2025, while experiencing minor fluctuations, its overall strength remained notable.
Several factors have contributed to the cedi's newfound strength:
Improved Fiscal Management: The government's adherence to fiscal consolidation measures under its IMF program, including expenditure cuts and the elimination of certain distortionary taxes like the E-levy (which was abolished in May 2025), has bolstered confidence in the economy.
Gold Accumulation and Export Revenues: The Bank of Ghana's strategic accumulation of gold reserves, alongside a significant surge in international gold prices (reaching approximately $3,400 per ounce by May 2025), has significantly boosted foreign exchange inflows. The BoG increased its gold holdings by over 40% between May 2024 and April 2025. Cocoa prices also remained elevated, further enhancing export earnings.
External Debt Service Suspension: The temporary suspension of external debt servicing under Ghana's ongoing Debt Restructuring Programme has provided crucial breathing room for foreign exchange reserves, easing pressure on the cedi. The next major external payment is scheduled for July 2025.
BoG Interventions: The central bank has actively intervened in the forex market, including a significant injection of $490 million in April 2025, to support the cedi's stability.
Weakening US Dollar: Global economic shifts, including a weakening US dollar due to investor uncertainty, have also indirectly benefited emerging market currencies like the cedi.
The cedi's appreciation is having tangible positive impacts across various sectors:
Reduced Import Costs: A stronger cedi means that importers can acquire goods and machinery at lower prices in local currency terms. This has led to noticeable price reductions, for instance, in some imported goods, with reports indicating drops in prices for items like rice, cooking oil, and cement by June 2025.
Lower Fuel and Transport Fares: As the cedi strengthens, the cost of imported petroleum products decreases. This has translated into a drop in fuel prices (around 15% by May 2025) and a subsequent reduction in transport fares (also around 15% in May 2025), easing the burden on consumers and businesses.
Inflation Control: The cedi's stability has significantly aided the Bank of Ghana's disinflation efforts. Inflation, which was 23.8% in December 2024, reportedly fell to 21.2% in April 2025 and further to 18.4% in May 2025, its lowest in three years.
Improved Business Confidence: A more stable and appreciating cedi signals greater macroeconomic stability, which can attract foreign direct investment and portfolio inflows, boosting overall investor confidence.
While celebrating these achievements, Dr. Asiama cautioned against complacency, urging stakeholders to leverage the current momentum for sustainable growth.
"Your leadership in shaping national conversations like these is vital to the health of our economy and the quality of our policymaking. As we engage in today's panel discussions, I want to encourage all of you to be open. Speak up, open contributions and bold ideas."
The Governor emphasised the need for a collaborative approach:
"So come and as I mentioned, my colleagues are here. They will pick up, they'll sample all your ideas, and we'll work with them. Let us use this moment to forge a collective strategy for Ghana's foreign exchange future, a future that is built on credibility, built on capacity and built on courage."
His impassioned plea underscores the idea that while monetary policy and fiscal discipline are crucial, the sustained rise of the cedi and, by extension, the Ghanaian economy, requires active participation and innovative ideas from all sectors.
The current cedi gains present a significant opportunity for Ghana to solidify its economic recovery and build a more resilient financial future. Sources
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