Cedi fall seasonal, not a setback – BoG
The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has reassured markets that the recent decline in the cedi is not a reversal of Ghana’s currency-stability gains but a reflection of temporary seasonal factors.
Speaking at an SME forum organised by the Ghana Association of Banks, Dr Asiama said the central bank remains focused on protecting foreign-exchange reserves, sustaining investor confidence and keeping the exchange-rate environment predictable.
“The recent modest depreciation reflects the market adjusting to reforms and seasonal trade patterns. It is not at all a reversal. We expect continued interbank activity and fiscal discipline to restore balance and reinforce long-term stability,” he explained.
FX Reforms to Support Businesses
Dr Asiama underscored that the BoG’s ongoing foreign-exchange reforms aim to create a transparent and predictable FX market for enterprises, especially small and medium-sized businesses (SMEs).
“The purpose of these reforms is not simply to defend the cedi; it is to equip Ghanaian enterprises with a transparent, predictable FX environment that enables them to compete confidently in regional and global markets,” he said.
On 20 August 2025, the BoG issued a new directive barring banks from granting corporates cash withdrawals in foreign currency unless firms have already lodged equivalent FX deposits.
This forms part of a wider push to limit cash-based foreign-currency transactions and improve market discipline.
Market Context
The cedi has lost momentum in recent weeks. Its year-to-date gain narrowed to 18.51 per cent on 9 September, down from 20.35 per cent on 5 September, as strong corporate demand met tighter foreign-exchange supply.
Bloomberg reported on 4 September that the cedi had weakened by 13 per cent in the third quarter alone, giving back some of the spectacular 50 per cent rally earlier in the year.
This surge was driven by buoyant gold prices that had briefly made the cedi the world’s best-performing currency through June.
Outlook
While market interventions have moderated compared to May through July, the BoG remains confident that disciplined interbank trading and ongoing fiscal reforms will stabilise the currency.
