The Dr. Johnson Asiama, Governor of the Bank of Ghana, has credited Ghana’s record-low inflation and sharp cedi appreciation to disciplined monetary management and targeted policy interventions.

Speaking to JoyBusiness, Dr. Asiama highlighted that the Bank’s sterilisation measures, coupled with a strong appreciation of the cedi, were central to delivering historically low inflation rates.

He stated: “It is because of the sharp appreciation of the cedi and the prudent sterilisation measures that have also helped in delivering this record inflation.”

Inflation Trends And Monetary Policy Impact

The inflation rate fell further to 3.3% in February 2026, down from 3.8% in January and sharply lower than 23.1% recorded in February 2025. Analysts have credited the central bank’s policy toolkit—including interest rate adjustments, sterilisation operations, and fiscal coordination—for stabilising the cedi and curbing price pressures.

In its January Monetary Policy Report, the Bank projected that inflation would trend toward the lower end of its medium-term target of 8 ± 2% in 2026, citing the combined effects of an appropriate monetary policy stance, ongoing fiscal consolidation, and sufficient reserve buffers.

Economic Costs And Gold-for-Reserve Programme

While the low inflation and strong cedi represent macroeconomic gains, Dr. Asiama acknowledged that these results came with financial costs. The Governor explained that losses recorded under the Gold for Reserve (G4R) Programme had contributed to prior financial pressures but emphasized that reforms had significantly reduced associated fees and charges by half, lowering the cost burden on the Bank.

He said these costs must be interpreted within the broader economic context, questioning whether the sharp cedi appreciation and historically low inflation delivered tangible benefits to Ghanaians.

Outlook for the Cedi And BoG Finances In 2026

Looking ahead, Dr. Asiama expressed confidence that the Bank would not experience similar losses in 2026. He noted that with inflation at 3.3% and the policy rate being gradually lowered, sterilisation costs are expected to decline, positively impacting the Bank’s financial position.

He added that any remaining losses linked to the Goldbod initiative would be absorbed by the government, after associated costs were reduced, describing the current profit-and-loss pressures as a one-time cost of resetting the economy.

Dr. Asiama’s remarks underscore the Bank of Ghana’s strategy of balancing macroeconomic stability with prudent financial management, aiming to sustain cedi strength and low inflation while minimizing future financial risks.