Avoid speculation in Forex Market – BoG Second Deputy Governor urges Market Players to support Cedi stability

Second Deputy Governor of the Bank of Ghana (BoG), Mrs Matilda Asante-Asiedu, has called on all market participants—including banks, importers, exporters, and investors—to conduct foreign exchange transactions based on genuine commercial needs rather than speculation, stressing that responsible market behaviour is key to sustaining the stability of the cedi.

Speaking at The Money Summit 2026 in Accra on June 2, 2026, she emphasised that while economic buffers have strengthened Ghana’s resilience, market discipline remains equally critical in maintaining currency stability.

“That is how we keep the cedi stable, together,” she said.

Mrs Asante-Asiedu noted that Ghana’s external buffers have remained strong and have helped the economy withstand recent global shocks. According to her, these gains are the result of deliberate policy actions by the central bank and fiscal authorities.

“Our reserves have held strong, and the cedi has remained largely resilient. But a stable currency is not only built on reserves. Proper market conduct is just as important,” she stated.

She further explained that speculation against the cedi has previously resulted in losses for market players who bet on its depreciation.

“We saw this clearly last year. Those who bet against the cedi and hoarded foreign currency ended up on the wrong side of the trade,” she added.

Mrs Asante-Asiedu stressed that the fundamentals of the Ghanaian economy do not reward speculative behaviour and urged all stakeholders to prioritise genuine demand in their foreign exchange transactions.

“The fundamentals of this economy do not reward speculation against our currency. Therefore, I urge every actor—banks, importers, exporters, and investors—to transact on genuine need, not fear. That is how we keep the cedi stable, together,” she said.

She also reaffirmed the Bank of Ghana’s commitment to maintaining price stability, noting that controlling inflation remains central to sustaining low interest rates and supporting business growth.

“We remain vigilant to inflationary threats, and we will deploy every tool available in our toolkit to address inflation whenever it threatens macroeconomic stability,” she said.

According to her, low inflation helps anchor low interest rates, which in turn enables businesses to access affordable credit for expansion and operations.

Mrs Asante-Asiedu further disclosed that the central bank will continue building external buffers, targeting at least six months of import cover, while advancing the Ghana Gold Reserve Accumulation Programme (GOLDRAP) toward a medium-term goal of 15 months of import cover.

She noted that these buffers have helped Ghana withstand recent global pressures, including volatility in oil markets and geopolitical tensions, while supporting the relative stability of the cedi.

However, she cautioned that sustainable currency stability depends not only on reserves but also on disciplined market behaviour.

Recalling past market dynamics, she warned against speculative trading, stating that those who bet against the cedi in previous periods were forced to unwind their positions at a loss when the currency recovered strongly through 2025.

The Deputy Governor’s remarks underscore the central bank’s continued push for market discipline alongside macroeconomic reforms aimed at strengthening Ghana’s financial stability.