Governor of the Bank of Ghana, Dr Johnson Asiama, has declared that Ghana is not expected to slide back into the prolonged phase of continuous cedi depreciation as ongoing economic restructuring efforts steadily reinforce confidence in the national economy.
Speaking to journalists after the central bank’s 130th Monetary Policy Committee gathering in Accra, Dr Asiama indicated that the recent appreciation and steadiness recorded within the foreign exchange market demonstrate the impact of firmer economic fundamentals together with coordinated policy implementation by monetary authorities and fiscal managers.
According to the Governor, the country is witnessing a considerably more resilient economic environment, one that does not suggest a return to the recurring instability that previously weakened the local currency against major international trading currencies.
“We do not foresee a return to the era of sustained depreciation of the cedi,” he affirmed.
Dr Asiama explained that stronger foreign exchange inflows alongside expanding reserve buffers and renewed fiscal restraint have significantly contributed to the recent stability of the cedi. He further noted that the economy has benefited from rising proceeds generated through gold exports together with increasing remittance transfers and improving investor sentiment, all of which have enhanced the performance of the domestic currency.
“The stability we are witnessing is backed by stronger macroeconomic conditions and prudent policy measures,” Dr Asiama stated.
The Governor also underscored the central bank’s determination to sustain strict oversight within the foreign exchange market in order to minimise excessive fluctuations and preserve broader monetary stability.
“We will continue to implement the appropriate measures necessary to maintain confidence and stability in the currency market,” he added.
The assurance from the Governor follows the latest decision by the Monetary Policy Committee to maintain the policy rate at 14 percent amid gradually moderating inflationary pressures and improving macroeconomic indicators across the Ghanaian economy.
