Cedi Appreciation Driven by Strong Policy Reform -Governor
Ghana’s recent cedi gains are a result of strong policy discipline, steady economic reforms, and rising market confidence, according to Bank of Ghana Governor Dr Johnson Asiama.
Speaking through his Special Advisor, Dr John Kwakye, at the 14th Ghana Economic Forum, the Governor emphasized that the cedi’s 40% appreciation against the US dollar in 2025 signals trust in policy direction and robust management, not just market swings or luck.
He explained that lasting cedi strength rests on three pillars: economic stability, increased local production and exports, and ongoing innovation, especially in digital finance. The Governor noted that stability is only meaningful when supported by productive sectors, highlighting Ghana’s moves to add value to gold, cocoa, and manufactured goods.
The passage of the Gold Board Act, 2025, marks a key policy shift. It will centralize gold trading, formalize the value chain, and directly connect Ghana’s mineral wealth to the country’s reserves, making the currency’s strength more tangible.
The Governor also stressed the critical role of innovation. Efforts such as piloting the E-Cedi, expanding digital payments, and updating rules for fintech companies are reducing costs and broadening financial inclusion, making the economy more resilient and competitive.
He credited the central bank’s shift from just stabilizing markets to shaping them for long-term strength. Lower inflation (now around 9.4%), a strong banking sector, and improved credit flow are cited as evidence of restored credibility. Gold is now being used as a strategic reserve, helping to anchor the cedi.
However, Dr Asiama warned that the gains are still vulnerable to global shocks, production hurdles, and policy delays.
He cited the World Bank’s forecast for Ghana’s GDP growth to slow from 5.7% in 2024 to 3.9% in 2025 due to challenging global conditions, urging continued vigilance to protect recent achievements.
