Audio By Carbonatix
Dr. Johnson Asiama, Governor of the Bank of Ghana, has reassured stakeholders that the recent depreciation of the Ghanaian cedi should not be viewed as a significant setback to the stability the currency has achieved in recent months.
Instead, he emphasised that the central bank's ongoing interventions are designed to bolster reserves, enhance investor confidence, and maintain a predictable exchange rate.
Dr. Asiama highlighted in a recent address at an SME forum hosted by the Ghana Association of Banks that the cedi remains fundamentally supported by a series of structural reforms and disciplined market behaviour.
“The recent modest depreciation, some have wondered, 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 asserted.
Amidst growing concerns about the cedi's performance, Dr. Asiama's comments come on the heels of a new foreign exchange directive issued on August 20, 2025.
This regulation prohibits banks from permitting corporate clients to withdraw cash in foreign currency unless they have first deposited an equivalent amount in foreign exchange. This measure aims to stabilize the foreign exchange market and mitigate volatility.
As of September 9, 2025, the cedi has experienced a year-to-date gain of 18.51%, a decrease from 20.35% just days prior—evidence of strong corporate demand clashing with a tight foreign exchange supply.
Notably, the local currency has faced a challenging third quarter, with Bloomberg reporting a 13% depreciation, erasing part of the cedi's remarkable 50% surge earlier in the year when it was celebrated as the world’s top-performing currency.
Dr. Asiama pointed to the ongoing market dynamics, noting that while the Bank of Ghana has reduced its intervention levels compared to the more aggressive measures taken in May, June, and July, the central bank is committed to ensuring a healthy foreign exchange environment.
He asserted, “The purpose of these reforms is not simply to defend the cedi; it is to equip Ghanaian enterprises, especially SMEs, with a transparent, predictable FX environment that enables them to compete confidently in regional and global markets.”
As the cedi navigates this volatile phase, the Bank of Ghana's strategy is focused on fostering an environment where local businesses can thrive.
The governor's remarks reflect a broader commitment to enhancing the resilience of the Ghanaian economy, particularly in the face of global uncertainties and fluctuating commodity prices.
As stakeholders absorb Dr. Asiama's reassurances, the emphasis remains on the need for continued fiscal discipline and market stability.
With the cedi's recent fluctuations serving as a reminder of the complexities within the foreign exchange landscape, the path forward will require both strategic interventions from the central bank and a concerted effort from businesses to adapt to the evolving economic realities.
In this critical period, the Bank of Ghana's policies will play a pivotal role in shaping the future of the cedi and the overall economic landscape of the country.
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