Bank of Ghana (BoG) Governor Dr Johnson Asiama has assured businesses and the public that the central bank has adequate reserves to stabilise the cedi, stressing that there is no need for panic.

The Governor maintained that the Bank of Ghana's gross international reserves, which currently stand at US$12.9 billion, are sufficient to cover the country's import needs for about five months.

He added that "these reserves give us a strong buffer against external shocks and help the Bank of Ghana support stability in the foreign exchange market."

Dr Asiama made the remarks during a stakeholder engagement programme at Eusbett Hotel in Sunyani.

The Governor further assured participants that "this is why the Bank of Ghana will continue to take decisions that protect the value of the cedi, keep inflation low, preserve financial stability, and support sustainable economic growth."

He noted that "our goal is simple: to create an economic environment where businesses can grow with confidence, households can plan for the future, and every Ghanaian can share in the benefits of a stable and growing economy."

Dr. Asiama also explained that the recent pressure on the cedi was largely due to global developments, particularly the conflict in the Middle East, but said the currency has since recovered.

Despite those challenges, the governor was quick to assure that "we remain committed to maintaining an orderly and well-functioning foreign exchange market."

He, however, noted that while the situation has improved marginally in recent weeks, "we must not be complacent. This is because the global economy remains uncertain, and events beyond our borders can still affect us."

He reiterated that, "We remain committed to maintaining an orderly and well-functioning foreign exchange market."

Policy Rate Held at 14%

The Monetary Policy Committee of the Bank of Ghana maintained the policy rate at 14 per cent, explaining that it needed more time to assess the impact of developments in the Middle East on the Ghanaian economy.

Speaking at the stakeholder engagement in Sunyani, Dr Asiama noted that although uncertainty persists in the global economy, particularly because of the conflict in the Middle East and rising oil prices, Ghana's economy has continued to perform strongly.

He stated that, "We took this decision because we believe it is the right balance. It will help keep inflation under control while supporting businesses, investment, and economic growth. At the same time, it gives us the flexibility to respond to changes in the global economy if necessary."

On the economy, the governor argued that the recent growth figures for the first three months of the year showed that "we are seeing increased activity across many parts of the economy, including stronger bank lending to businesses, increased trade, higher industrial production, and a recovery in tourism."

He added that another encouraging development is that "businesses and consumers are becoming more confident about the future."

Banking Sector Remains Strong

In the banking sector, Dr Asiama said commercial banks remain well capitalised, deposits continue to grow, and the quality of bank loans has improved.

He also maintained that they are encouraged that "banks are lending more to the private sector, while credit to businesses and households grew by more than 41 per cent in June this year, compared with about 9 per cent a year earlier."

"This means more businesses have access to financing to expand, create jobs, and contribute to economic growth," the governor stated.