The Bank of Ghana (BoG) has expressed confidence in the sustained stability of the Ghanaian cedi, following its significant appreciation of nearly 19% between April and May 2025.

This positive trend is attributed to co-ordinated fiscal discipline and stringent monetary policy measures.

Governor Dr Johnson Asiama, addressing the opening of the 124th Monetary Policy Committee (MPC) meeting on May 21, 2025, highlighted that the cedi's appreciation has helped ease imported inflation pressures and restore public confidence.

“Importantly, the cedi has appreciated sharply by nearly 19 percent between April and May, helping to ease imported inflation pressures and restore public confidence. The appreciation reflects a combination of factors, including prudent monetary policy, improved market sentiment and external sector gains, he said.

He emphasised that the central bank will intensify key reforms to consolidate these gains, focusing on sustaining foreign exchange inflows and tightening regulatory oversight in the forex market.

Despite the improving outlook, Dr Asiama cautioned that underlying economic challenges persist.

“However, significant challenges persist. The inflation outlook, while improving, remains vulnerable to second-round effects, food supply constraints, especially from northern Ghana and the Sahel and external price shocks, particularly given volatile global commodity markets.

“Geopolitical tensions and evolving global trade dynamics, including the recent US-led tariff disputes, have heightened market uncertainty and could affect commodity prices, exchange rates, and financial flows in emerging markets like ours”, he added.

The MPC meeting, which commenced on May 21, 2025, amid sustained cedi strength against the US dollar and ongoing efforts to rein in inflation, is set to conclude on Friday, May 23, 2025.

At its last meeting in March this year, the Committee raised the policy rate by 100 basis points to 28%, a move deemed necessary to anchor inflation expectations.

With signs of currency stability and easing global pressures, the market anticipates a potential retention of the policy rate to guide lending rates and support overall economic recovery.

In a bid to strengthen its monetary policy framework, the BoG has appointed four new advisors; Dr John Kwabena Kwakye, Director of Research at the Institute of Economic Affairs (IEA); Professor John Gatsi, Dean of the University of Cape Coast Business School; Franklin Belnye and Dr Francis Kumah, a former Resident Representative of the International Monetary Fund (IMF).

These appointments aim to bring diverse expertise and perspectives to support the Committee’s work in guiding the country’s monetary policy decisions.



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