BoG has no fixed Cedi target – Governor explains currency strength

The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has clarified that the central bank does not operate with a predetermined exchange rate target for the Ghana cedi, despite the local currency’s recent appreciation.

Speaking at a press conference following the latest Monetary Policy Committee (MPC) meeting, Dr. Asiama explained that the cedi’s performance is being shaped by strong economic fundamentals rather than any artificial benchmarks.

He explained that while the Bank of Ghana is concerned about excessive currency depreciation, it does not maintain a specific appreciation target.

“We don’t have such a plan on the table that says when the cedi reaches a certain point, we must move to ease the appreciation. As much as we don’t want to see the Ghana cedi depreciate excessively, we don’t keep a target rate that we want to defend aggressively.” He stated.

He attributed the cedi’s recent resilience to a combination of factors including robust foreign exchange reserves, disciplined monetary policy, and improved investor confidence driven by ongoing fiscal and structural reforms.

“What we are witnessing with the Ghana cedi is influenced by strong reserves, robust monetary policy measures, and favorable market sentiments based on actions taken on both the monetary and fiscal fronts,

“It’s just a matter of time, we also believe that competition may play a significant role in the coming weeks, forcing traders to respond to current market developments.” He said.

According to economic and financial data released by the Bank on May 22, 2025, the cedi has appreciated by 24.1% against the US dollar. Ghana’s international reserves stood at $10.6 billion at the end of April 2025.

The central bank chief expressed optimism about the country’s economic trajectory, noting that the policy measures implemented so far have laid a strong foundation for continued stability and disinflation.

“I don’t think the end-of-year target is ambitious, looking at the policy measures we have undertaken. Looking at current developments and the policy measures in place, we should be able to manage any external developments that could reverse the current disinflation trend,” he added.

Dr. Asiama was confident about whether the current reserves were sufficient to handle future debt obligation. “We have everything programmed. What we have now is pretty adequate.” He disclosed.

Source: Elvisanokyenews.net