The Ghanaian cedi has posted a remarkable appreciation of nearly 19 percent between April and May, a performance that the Bank of Ghana credits to a cocktail of factors including prudent monetary policy, improved market sentiment, and external sector gains.
Governor Dr. Johnson Asiamah made the announcement during the opening session of the Bank’s 124th Monetary Policy Committee meeting at the Bank Square on Wednesday.
“Importantly, the cedi has appreciated sharply by nearly 19 percent between April and May, helping to ease imported inflation pressures and restore public confidence.
The appreciation reflects a combination of factors, including prudent monetary policy, improved market sentiment and external sector gains,” he said.
The central bank views the rally as a direct outcome of coordinated fiscal discipline and tight monetary policy, which have together helped stabilize the macroeconomic environment.
But even with the cedi’s strong showing, Dr. Asiamah cautioned that the economic landscape remains fraught with significant challenges.
“However, significant challenges persist. The inflation outlook, while improving, remains vulnerable to second-round effects, food supply constraints, especially from northern Ghana and the Sahel and external price shocks, particularly given volatile global commodity markets.”
There are also growing concerns about how external developments could impact Ghana’s economic recovery.
“Geopolitical tensions and evolving global trade dynamics, including the recent US-led tariff disputes, have heightened market uncertainty and could affect commodity prices, exchange rates, and financial flows in emerging markets like ours,” he noted.
To protect recent gains and ensure longer-term stability, the Bank of Ghana is preparing to ramp up its reforms. Among the top priorities will be measures aimed at sustaining foreign exchange inflows and tightening regulatory oversight in the forex market.
