The Bank of Ghana’s 124th Monetary Policy Committee briefing outlined significant progress in economic stabilization, with the cedi’s appreciation reflecting improved market confidence and disciplined monetary policy.
Governor Ernest Addison noted that while currency gains have been substantial, retail price adjustments may lag due to existing inventory cycles.
Ghana’s international reserves have surpassed $10 billion, providing over three months of import cover and strengthening the economy’s shock absorption capacity. Inflation is projected to decline to 11.9% by December 2025, with the central bank targeting single-digit inflation (8±2%) by Q1 2026 through sustained tight monetary policy.
The country has resumed partial external debt servicing following its IMF program, with carefully structured reserve allocations to prevent liquidity pressures. The central bank has discontinued its Gold-for-Oil program while maintaining Gold-for-Reserves operations to bolster financial buffers.
Key financial sector reforms include a December 2025 deadline for bank recapitalization following the Domestic Debt Exchange Program. The central bank also confirmed preparations for Islamic banking licensing, pending finalization of required legal frameworks including Shariah governance structures.
Upcoming $360 million IMF disbursement in July, coupled with expected World Bank inflows, is anticipated to further stabilize the cedi. The central bank noted potential utility tariff reductions may follow currency appreciation, contributing to disinflation.
While maintaining focus on digital financial inclusion policies, officials clarified that e-levy adjustments remain under the Finance Ministry’s purview. The briefing struck a cautiously optimistic tone, emphasizing that Ghana’s economic recovery remains work in progress requiring sustained reform implementation.
