Bank of Ghana Governor Dr. Johnson Asiama has reaffirmed the central bank’s commitment to a flexible exchange rate system, dismissing speculation about fixed exchange rate targets.
Speaking at the “Banking the Last Mile” forum on June 17, Dr. Asiama emphasized that the cedi’s recent stability stems from disciplined monetary policy rather than artificial intervention.
“The stability of the exchange rate is not accidental,” Dr. Asiama stated. “It reflects sound monetary policy, enhanced FX market transparency, and improved external sector fundamentals.” The Governor outlined key reforms including a more efficient foreign exchange auction system and tighter market surveillance that have reduced speculative trading and aligned currency flows with real economic activity.
Dr. Asiama credited Ghana’s IMF-supported fiscal consolidation program for improving investor confidence and external financing inflows. “Fiscal discipline is restoring credibility,” he noted, pointing to declining inflation and positive real interest rates as additional factors supporting the cedi.
The Governor’s remarks come amid growing public interest in the currency’s performance and the central bank’s foreign exchange management strategy. While maintaining the flexible regime, Dr. Asiama pledged continued vigilance to preserve macroeconomic stability, which he identified as essential for financial sector innovation and inclusion initiatives.
