The Bank of Ghana Governor, Dr. Ernest Addison, has maintained that the Ghana cedi’s stability in 2025 will largely depend on the economy and some monetary policy measures under implementation by the Central Bank.

“The Domestic Gold Purchase Programme has been one of the major factors that has contributed to cedis’ recent recovery and we expect that going forward that will be maintained to support the cedi’s performance”, the Governor added.

The Governor disclosed this on PM EXPRESS BUSINESS which airs on Thursday January 2, 2024, at 9pm on JOYNEWS.

Cedi’s Performance in 2024

In an interview with Joy Business, Dr. Addison said the performance of the cedi in the first half of 2024 was largely influenced by what he described as an ambitious International Monetary Fund programme “which made it difficult to maneuver and support the cedi”, he added.

The Bank of Ghana’s Economic and Financial Data showed that the cedi depreciated against the dollar by some 22.7% as of November 2024, compared to 26.2% in the same period for 2023.

However, Dr. Ernest Addison pointed out that the local currency could have ended the year with an improved position if it had not been uncertainty over the December 7, 2024 general elections, which impacted market confidence and its demand.

Cedi’s Outlook

The Governor expressed optimism about the cedi’s outlook for this year, but it will be dependent on certain measures and actions taken on both the monetary and fiscal Front.

The Governor added that following the improved economic situation in the country in the second half of 2024 as well as meeting the reserves requirement under the IMF programme “we had the space to support the local currency, resulting in some appreciation”.

He furthered that “we cannot rule out the impact of the incoming administration budget and how that will contribute to the cedis’ performance in 2025.