The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has described the recent pressure on the cedi as a short-term issue, assuring the public that the currency will stabilise soon.
Speaking in a recent interview, Dr. Asiama explained that the current depreciation is a temporary “cash flow challenge” and not a structural weakness.
He attributed the situation partly to increased demand for dollars following the cedi’s earlier appreciation, which made imports more attractive.
He emphasised that the BoG has implemented targeted measures over the past few months to restore stability, including tightening foreign exchange leakages and enforcing market regulations.
“We operate a managed floating exchange rate system, so short-term fluctuations are expected. But this is being addressed. We have sufficient reserves and are not running out of dollars,” Dr. Asiama stated.
He also clarified that the central bank has scaled back its forward dollar auctions, not due to a lack of reserves but to allow the interbank market to function more effectively.
“The BoG’s role is to support not dominate the FX market. We’re working to improve liquidity and ensure the market corrects itself through trade and remittance inflows,” he added.
Dr. Asiama revealed that investigations uncovered some remittance companies and payment service providers engaging in offshore settlements and unregulated crypto transactions, contributing to foreign exchange leakages.
“While we support innovation, practices that harm the cedi will be regulated. We’ve already begun closing loopholes and strengthening oversight,” he said.
He expressed confidence in the fundamentals of the economy, noting that Ghana’s participation in the IMF programme and prudent reserve management provide a solid foundation for currency stability.
