The Bank of Ghana has reinforced its commitment to preserving the cedi’s stability, emphasizing that a strong local currency forms the foundation for effective foreign exchange regulations and sustained market confidence.
First Deputy Governor Dr. Zakari Mumuni outlined the central bank’s strategy during a recent briefing with financial stakeholders.
“A stable cedi reduces speculative demand for foreign currency and encourages businesses to price goods in the local currency,” Mumuni explained. He noted that while enforcement of forex regulations remains a priority, these measures become more effective when supported by currency stability. The deputy governor pointed to recent interventions that have helped build reserves and restore confidence in the financial markets.
The cedi’s performance has shown signs of improvement following months of volatility, with the central bank attributing this to strategic monetary policies and improved foreign exchange reserves. Mumuni assured the public that the bank has implemented robust measures to sustain this trend, though he cautioned against behaviors that could undermine progress. “We urge both businesses and individuals to avoid panic-driven decisions that may disrupt the currency’s stability,” he said.
Ghana’s economy has faced persistent pressure from global financial conditions, with the cedi experiencing significant depreciation earlier this year. The central bank’s latest statements signal a continued focus on stabilizing the exchange rate while maintaining strict oversight of forex transactions.
The success of these measures will depend on broader economic factors, including the government’s fiscal discipline and ongoing debt restructuring efforts. As Ghana navigates these challenges, the Bank of Ghana’s approach may serve as a case study for other African economies grappling with similar currency pressures. The coming months will test whether these policies can deliver lasting stability or if additional interventions will be required to safeguard the cedi’s value.
