The Bank of Ghana has cautioned that sustaining the recent stability of the cedi will depend increasingly on market expectations, even as the local currency posted one of its most stable performances in years.

Opening the 128th Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Pandit Asiama said the cedi’s strong showing in 2025 was underpinned by improved confidence and a stronger external position, but stressed that the dynamics going forward will be more sensitive to sentiment and perceptions.

“Foreign exchange stability and expectations. The cedi has been remarkably stable in 2025, reflecting improved confidence and a strong external position. While recent pressures appear largely seasonal, expectations will now play a central role in sustaining stability,” the Governor said.

The remarks signal a shift in focus from purely structural factors—such as reserves and inflows—to the role of confidence, communication, and policy credibility in maintaining currency stability.

Ghana’s improved external buffers and current account performance helped anchor the cedi in 2025, easing volatility that had previously weighed on businesses and consumers. However, the Governor’s comments suggest that the central bank is now keenly aware that negative expectations could quickly reverse gains, even in the absence of major shocks.

Dr. Asiama noted that recent pressures on the currency appear largely seasonal, indicating that the central bank does not see immediate structural threats. Nevertheless, he stressed that managing expectations will be critical as the MPC calibrates policy in 2026.

Analysts say the comments underscore the importance of clear policy signals, disciplined fiscal management, and transparent communication to prevent speculative pressures from re-emerging in the foreign exchange market.

The Bank of Ghana’s emphasis on expectations highlights its intent to guard credibility as a frontline defence for currency stability, particularly as Ghana prepares for closer external scrutiny under its IMF-supported programme.