Bank of Ghana Governor, Dr Johnson Asiama, has said the central bank may deliberately allow the cedi to weaken slightly at certain periods as part of its broader economic management strategy.

He said recent movements in the value of the cedi should not necessarily be interpreted as a loss of control by the central bank.

According to Dr Asiama, allowing the foreign exchange market to adjust at certain times can form part of the Bank of Ghana’s policy approach.

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“Sometimes it’s okay to allow the system to adjust. Sometimes it’s a deliberate policy to allow the cedi to depreciate a little bit. It’s all within the strategy,” he stated.

He added that small movements in the exchange rate should not trigger unnecessary concern, stressing that the central bank continues to monitor developments in the foreign exchange market.

“Managing an economy, some days things might look challenging. It doesn’t mean we have lost control,” he said.

Dr Asiama made the comments at the launch of the Central Securities Depository’s InvestorConnect mobile application.

The cedi has recorded relatively strong performance against major international currencies for much of the year, supported by improved economic conditions and developments in the foreign exchange market.

However, its recent weakness has added to pressure on domestic fuel prices, alongside changes in international refined petroleum product prices.

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The Governor’s comments come as the Bank of Ghana continues to monitor movements in the cedi and other economic indicators, with the exchange rate remaining an important factor in the cost of imported goods and fuel.

DR/MA

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