Governor of the Bank of Ghana, Dr. Johnson Asiama, has downplayed concerns over the recent decline in the value of the cedi, asserting that it does not signal a reversal of the currency’s earlier stability gains.
Addressing stakeholders at a Small and Medium Enterprises (SME) forum hosted by the Ghana Association of Banks on Thursday, September 11, Dr. Asiama emphasized that the central bank remains committed to safeguarding foreign reserves, bolstering investor confidence, and maintaining a stable exchange rate regime.
“The slight depreciation observed reflects market adjustments to ongoing reforms and seasonal trade flows—not a backslide,” he explained. “We anticipate that sustained interbank activity and fiscal discipline will help restore equilibrium and reinforce long-term stability.”
Dr. Asiama further noted that the reforms are designed not merely to defend the cedi, but to create a transparent and predictable foreign exchange environment that empowers Ghanaian businesses—particularly SMEs—to compete effectively across regional and global markets.
His remarks come in the wake of a new foreign exchange directive issued on August 20, 2025, which restricts banks from issuing foreign currency cash withdrawals to corporate clients unless equivalent FX deposits have been made.
The cedi’s performance has softened in recent weeks, with its year-to-date appreciation narrowing to 18.51% on Tuesday, September 9, down from 20.35% on Friday, September 5. This shift is attributed to strong corporate demand amid limited FX supply.
The Bank of Ghana has also scaled back its market interventions, with recent supply volumes falling below those recorded in May, June, and July.
According to Bloomberg’s report on September 4, the cedi weakened by 13% in the third quarter alone, partially erasing the currency’s earlier 50% rally—an upswing previously driven by high bullion prices that had positioned the cedi as the world’s top-performing currency through June.
Author: Jasmine Adjei
Development journalist
