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The Bank of Ghana (BoG) has defended the strength of the cedi’s economic fundamentals, cautioning market participants against speculative activity that could place unnecessary pressure on the local currency.
According to the central bank, Ghana’s improving macroeconomic indicators, stronger external reserves, and continued policy discipline provide a solid foundation for exchange rate stability despite recent market pressures.
The warning comes amid renewed demand for foreign exchange. By the close of last week, the cedi weakened by 0.94 per cent against the U.S. dollar on a week-on-week basis, while also depreciating by 0.70 per cent against the British pound and 1.24 per cent against the euro. Year-to-date, the currency’s losses against the dollar widened to 10.14 per cent.
Speaking at the Money Summit 2026 in Accra, the Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, said recent market movements do not justify speculative pressure on the cedi.
“The fundamentals of this economy do not deserve speculation against our currency,” she said, urging banks, importers, exporters and investors to base foreign exchange demand on legitimate commercial activity rather than market sentiment or fear-driven positions.
To stabilise the market, the central bank continued its foreign exchange interventions, injecting a cumulative $250 million through its regular auctions last week. However, demand continued to exceed supply, with bids reaching $518 million and $485 million across auction windows.
Auction clearing rates also rose to between GH¢11.68 and GH¢11.73 to the dollar, underscoring persistent pressure within the foreign exchange market.
The BoG disclosed that it supplied a total of $1 billion to the market in May and plans to increase interventions to $1.2 billion in June to improve liquidity and support currency stability.
Asante-Asiedu attributed part of the recent pressure on the cedi to elevated energy import costs and geopolitical tensions, particularly disruptions linked to the U.S.-Iran conflict.
According to her, Ghana has had to allocate nearly 40 per cent more foreign exchange toward financing oil imports due to supply chain disruptions and rising energy-related costs.
Despite these headwinds, she maintained that Ghana’s external buffers remain resilient. Gross international reserves increased to $14.4 billion as of May 18, 2026, representing approximately 5.7 months of import cover, up from $13.8 billion recorded at the end of 2025.
The country’s current account position also strengthened during the first quarter of 2026, with the surplus rising to $3.10 billion from $2.43 billion during the same period last year, supported by robust gold and cocoa export earnings alongside resilient remittance inflows.
“Our buffers have held strong and the market has stayed largely open,” Asante-Asiedu said, adding that the central bank’s rules-based intervention framework has helped moderate volatility while sustaining investor confidence.
She also pointed to broader improvements in Ghana’s macroeconomic environment. Inflation eased marginally from 23.8 per cent at the end of 2024 to 23.4 per cent in April 2026, while the monetary policy rate declined from 27 per cent to 14 per cent over the same period.
Treasury bill yields also fell significantly from around 28 per cent to below 5 per cent, while average lending rates moderated to approximately 16 per cent.
However, the deputy governor cautioned that these gains remain fragile and dependent on continued fiscal and monetary discipline, particularly as Ghana transitions from the IMF Extended Credit Facility programme to a Policy Coordination Instrument.
“The numbers, good they are, are however fragile if they are not anchored,” she said. “Our credibility now rests entirely on the quality and consistency of our policies.”
Looking ahead, the Bank of Ghana said it plans to strengthen reserve buffers through the Ghana Gold Reserve Accumulation Programme (GAMRAP), with a medium-term target of building reserves equivalent to 15 months of import cover.
The central bank also expects stronger banking sector balance sheets and deeper domestic capital mobilisation to support lending to critical sectors, including agriculture, manufacturing and small businesses.
“We have secured stability,” Asante-Asiedu said. “Our charge now is to sustain it.”
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