We are building reserves, not intervening in forex market amid cedi pressures – BoG Governor
The Governor of the Bank of Ghana, Johnson Asiama, has stated that the central bank is not engaging in artificial intervention in the foreign exchange market, despite recent pressures on the cedi.
He explained that the Bank’s current focus is on strengthening external reserves to support long-term macroeconomic stability rather than directly influencing exchange rate movements.
Speaking after the Monetary Policy Committee maintained the policy rate at 14 percent, Dr. Asiama said the relative stability of the cedi in recent months has been supported by improved market fundamentals, stronger foreign inflows and rising investor confidence.
“We are not intervening in the market in a manner that distorts the exchange rate. What we are doing is building reserves and strengthening buffers for the economy,” he said.
He noted that Ghana’s reserve position has improved significantly, helping the economy better withstand external shocks and bolster confidence in the local currency.
“The reserve accumulation programme is progressing well and this is providing confidence to the market and supporting exchange rate stability,” he added.
Dr. Asiama further assured businesses and investors of the central bank’s commitment to prudent monetary management, adding that the Bank will continue to closely monitor developments in the foreign exchange market.
“Our objective is to ensure long-term macroeconomic stability and avoid a return to the era of sustained currency depreciation,” he stressed.
He acknowledged that global uncertainties, including geopolitical tensions and fluctuations in commodity prices, continue to pose risks to emerging market currencies such as the cedi.
However, he maintained that Ghana’s improving macroeconomic indicators, easing inflation trends and stronger reserve buffers are helping to cushion the economy against external shocks.
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