Ghana’s Cedi Stability Attributed to Monetary Policy and Forex Enforcement

Story By: Akua Oteng Amponsah

The stability of Ghana’s cedi has been credited to a combination of factors, including a tight monetary stance, fiscal consolidation, record reserve accumulation, and strict enforcement of foreign exchange market rules. The cedi has rebounded strongly against major trading currencies, driven largely by market forces.

According to the Bank of Ghana, maintaining exchange rate stability remains a key objective. The Monetary Policy Committee (MPC) has maintained the policy rate at 28% in its latest decision.

Inflation has also shown a downward trend, with headline inflation declining consecutively in the first four months of the year. This decline has been driven by both food and non-food inflation.

The MPC’s decision underscores the central bank’s commitment to ensuring macroeconomic stability and controlling inflation.

The Bank of Ghana’s measures appear to be yielding positive results, with the cedi’s stability and declining inflation providing a favorable environment for economic growth.