The Governor of the Bank of Ghana, Dr Johnson Asiama, has dismissed claims that the recent strengthening of the currency is due to ‘artificial support’ by the central bank through short-term interventions or manipulation of foreign exchange reserves.
Speaking at the Ghana CEO Summit in Accra on Monday, Dr Asiama addressed growing speculation within the business community and financial circles that the central bank may be influencing the exchange rate to create the impression of a stable local currency.
“Our cedi has appreciated by 24.1% against the US dollar,” he stated. “Let me emphasise that the Central Bank is not using international reserves to prop up the cedi, nor are we engineering an unsustainable appreciation.”
The Bank of Ghana’s stance comes amid the local currency’s strong performance in recent weeks, prompting debate over what is fuelling the rally. The governor attributed the appreciation not to behind-the-scenes interventions but to tangible macroeconomic progress and carefully crafted policy reforms.
According to Dr Asiama, the appreciation is a reflection of “disciplined monetary policy, foreign exchange market reforms, and increased foreign inflows.” These structural adjustments, he explained, are part of a long-term strategy aimed at stabilising the cedi and fostering investor confidence.
He cited enhanced market surveillance and a more efficient foreign exchange regime as key enablers of the cedi’s resilience. Ghana’s remittance inflows have also seen notable improvements, helping to boost foreign exchange availability and ease demand pressure on the local currency.
The governor’s remarks come at a time when many businesses, especially import-reliant enterprises, are cautiously optimistic about the cedi’s performance, while others remain sceptical about its sustainability.
“These are not short-term interventions,” Dr Asiama clarified. “They are deliberate, structural changes aimed at ensuring long-term stability.”
His comments were also aimed at reassuring the private sector of the central bank’s transparency and commitment to a rules-based monetary environment. The Bank of Ghana, he said, remains focused on safeguarding the credibility of its operations and the integrity of Ghana’s broader financial system.
Dr Asiama’s message was unambiguous: the appreciation of the cedi is a result of methodical planning and economic discipline, not a temporary fix or cosmetic gesture to soothe market nerves.
His defence of the currency’s strength comes as Ghana continues to navigate a complex post-pandemic economic recovery, with inflation moderating and investor sentiment gradually improving. For policymakers and business leaders alike, the current exchange rate trend is a welcome development, but one that must be underpinned by enduring reforms.
In pushing back against the notion of manipulation, the Bank of Ghana is drawing a line between speculative commentary and what it sees as the hard-earned results of fiscal and monetary cooperation.
As Dr Asiama concluded, the focus now is not merely on the current appreciation, but on ensuring that the gains are sustainable and reflective of deeper economic resilience.
