Cedi appreciation driven by strong economic fundamentals – BoG Governor
By Raphael Nii Trebi Hammond
Governor of the Bank of Ghana, Dr. Johnson Asiama, has attributed the recent appreciation of the Ghana cedi to strong market fundamentals and sound economic policies—not interventions by the central bank.
Speaking at the Monetary Policy Committee (MPC) press briefing, Dr. Asiama explained that the local currency’s performance reflects growing investor confidence, a healthy external sector, and a current account surplus—rather than the use of foreign reserves to support the currency.
“The appreciation is largely driven by the market. It’s not something the central bank is using its reserves to achieve,” he said.
According to Dr. Asiama, Ghana’s reserves are steadily increasing, which indicates that the central bank is not drawing on them to defend the cedi.
“If you look at the data pack we published yesterday, our reserve position is improving. This clearly shows we are not intervening artificially,” he added.
He emphasized that the Monetary Policy Committee had carefully evaluated real exchange rate movements and determined that the cedi’s appreciation is not hurting Ghana’s competitiveness.
“Where we are now, we don’t have that problem of real appreciation that will impact adversely on our competitiveness,” he said.
The Governor cited increased inflows from gold, cocoa, remittances, and a solid trade surplus as key drivers of the cedi’s gains.
Ghana’s current account is reportedly in surplus, and the trade balance continues to perform well—reinforcing the country’s macroeconomic stability. Dr. Asiama assured the public that the Bank will continue to monitor the market closely, but stressed that the current trend in the exchange rate is sustainable, driven by underlying economic strength rather than temporary fixes.
