Bank of Ghana Governor Dr. Johnson Asiama has disclosed that the cedi’s historic appreciation of more than 40 percent against the US dollar in 2025 surprised him in its scale, even as he had anticipated the currency would strengthen following improvements in Ghana’s macroeconomic fundamentals.
Speaking at the Ghana Export-Import Bank Fireside Chat in Accra on March 25, 2026, Dr. Asiama explained that the Bank of Ghana did not engineer the cedi’s recovery by fixing the exchange rate but instead created the macroeconomic conditions that allowed the market to determine it. “We operate a managed floating exchange rate. Not a fixed rate. The exchange rate is an endogenous variable,” he said.
He noted that while the direction of the cedi’s movement was expected, its magnitude was not. “I knew the cedi could appreciate. I did not know it could appreciate to that extent,” he said.
The Governor attributed the turnaround to a combination of policy measures. Headline inflation fell from above 23 percent to 3.3 percent, the Monetary Policy Rate (MPR) was reduced from 27 percent to 14 percent, and Ghana’s gross international reserves rose from $8.9 billion to a record $13.8 billion, equivalent to nearly six months of import cover. Consistent and transparent central bank communication, he said, also helped rebuild market confidence and reduce uncertainty.
Dr. Asiama stressed that under the managed floating regime, the Bank of Ghana does not set a specific exchange rate but intervenes only to prevent excessive volatility, with the objective of stability rather than rigid control.
He also addressed the broader significance of exchange rate stability for the business community, arguing that persistent depreciation and volatility make pricing difficult, disrupt cost structures and complicate long-term planning. A more stable currency, he said, allows businesses to price contracts with greater certainty and make investment decisions with longer time horizons.
On the outlook, the Governor identified geopolitical tensions in the Middle East and pressures on commodity markets as the key external risks to the gains made in 2025, but said Ghana’s strong reserve position provided a meaningful buffer.
