The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has assured the public that the cedi’s recent gains are sustainable, driven by deliberate and strategic economic policies rather than short-term factors.

He explained that through decisive, fiscal, monetary and institutional reforms, the cedi had not only stabilised but had also strengthened significantly, supported by robust external buffers, a prudent monetary policy, coordinated fiscal consolidation and renewed investor confidence.

The Governor said the cedi had appreciated by over 42 per cent year-to-date as of June this year, reversing nearly all the losses incurred in 2022 and 2023.

“We must now move from stabilisation to sustainability, and from headline gains to real sector benefits,” Dr Asiama asserted in Accra yesterday at the Graphic Business/Stanbic Bank Breakfast Meeting, a thought leadership programme.

The Governor, who used data to demonstrate how the gains came about and why they were sustainable, however, pointed out that sustaining forex (foreign exchange) stability could not be achieved by the central bank alone, stressing that “it must be embedded in how businesses operate, plan and engage the financial system”.

He said the Bank of Ghana would continue to play its part through sound policy, credible regulation and institutional discipline.

Breakfast meeting 

The breakfast meeting, a joint initiative of the Graphic Communications Group Ltd (GCGL) and Stanbic Bank Ghana, is a series of quarterly dialogues that feature carefully selected topics to influence government policies to create a friendlier business environment.

Yesterday’s edition brought together players in the private sector, policymakers, academia and people from government to share insights and expertise on the critical issue of sustaining forex gains and their impact on businesses and the economy.

Held on the theme: “Sustaining forex gains: Business & economic impact”, the meeting was chaired by Dr Asiama, with other panellists such as the President of the Ghana Union of Traders Association (GUTA), Joseph Obeng; a lecturer at the University of Ghana, Prof. Agyapomaa Gyeke-Dako; Country Senior Partner at PwC Ghana, Vish Ashiagbor, and the Head of Global Markets of Stanbic Bank, Afua Bulley, also in attendance.

Towards sustainability

Dr Asiama explained that the Ghanaian economy had, over the last three years, endured extraordinary shocks, ranging from the domestic debt exchange programme (DDEP) to global financial tightening and fiscal slippages driven by excessive borrowing.

He said those events tested the very fabric of the country’s macroeconomic architecture, given that inflation soared, the currency weakened sharply, and public confidence wavered.

However, he said, through decisive reforms in the shape of fiscal, monetary and institutional actions, the country had reached a critical turning point of successfully stabilising the local currency.

The Governor said gross international reserves now stood at $11.1 billion, providing 4.8 months of import cover, up from $8.98 billion at the end of last year.

“We recorded a trade surplus of $4.14 billion in the first four months of 2025, with exports growing by over 60 per cent, mainly from gold, cocoa and oil.

“The current account surplus improved significantly to $2.12 billion in the first quarter of 2025, compared to just $66 million a year earlier. Remittance inflows remain resilient, and Ghana’s IMF-supported programme has passed successive reviews, leading to a sovereign credit rating upgrade by S&P from selective default to CCC+,” he said.

Dr Asiama said these outcomes signified not just a numerical improvement but a restoration of macroeconomic credibility that would inspire confidence among markets, investors and citizens, essentially fostering a more stable and attractive economic environment.

Policy coordination

The Governor said the central bank had maintained a firm disinflation stance, raising and holding the monetary policy rate at 28 per cent, conducting active open market operations (OMO) to absorb excess liquidity, and enforcing discipline in the foreign exchange market through structured forex auctions and forward guidance.

“These actions were not in isolation.

They were reinforced by the Ministry of Finance’s commitment to fiscal consolidation as captured in the 2025 Budget and aligned with the structural benchmarks of the IMF programme.

“What we are witnessing is the power of synchronised policy execution, where the central bank’s inflation-targeting mandate and the government’s expenditure rationalisation converge to restore credibility, stabilise expectations and anchor the cedi,” he said.

The Governor said the cedi's resurgence was certainly commendable, but that the country must not become complacent.

He said sustaining these forex gains would be a far more complex task, requiring careful anticipation of challenges, management of contradictions and resolution of deep-seated structural issues.

“First, the risks of volatility remain real and persistent.

Our current account and reserve strengths are still largely dependent on a few commodity exports: gold, cocoa and oil.

These sectors are highly vulnerable to price fluctuations driven by factors beyond our control.

“For example, gold prices, which have significantly boosted our export earnings, are currently above $3,200/oz, influenced by geopolitical uncertainty, including the recent Iran-Israel conflict.

While beneficial for now, a future correction in prices could quickly narrow our trade surplus,” he said.

Moreover, he said, the country’s import profile remained heavily skewed towards energy, capital goods and essential commodities.

He said this lack of diversification usually led to seasonal spikes in forex demand, especially in the latter half of the year, making the cedi vulnerable to renewed pressure from even slight shifts in global sentiment or commodity cycles.

Commendation

Dr Asiama commended the GCGL and Stanbic Bank Ghana for convening the high-level discussion on Ghana's economic future.

“Your leadership in shaping national conversations like these is vital to the health of our economy and the quality of our policymaking.