The Bank of Ghana (BoG) has announced plans to intensify key monetary and regulatory reforms aimed at consolidating recent gains made by the Ghanaian cedi, which has appreciated by nearly 19% since the beginning of the year.

Governor of the BoG, Dr. Johnson Asiama, made the disclosure on Wednesday during the opening of the central bank’s 124th Monetary Policy Committee (MPC) meeting in Accra. He highlighted that the rally in the local currency is the result of strong fiscal discipline, effective monetary tightening, and renewed investor confidence.

“Importantly, the cedi has appreciated sharply by nearly 19 percent between April and May, helping to ease imported inflation pressures and restore public confidence,” Dr. Asiama stated.
“This reflects a combination of prudent monetary policy, improved market sentiment, and gains in the external sector.”

The Governor noted that while the appreciation of the cedi is a positive development, deeper structural challenges still threaten the long-term stability of the economy.

“Significant challenges persist. Inflation, though moderating, remains exposed to second-round effects from food supply constraints, especially from the north and the Sahel, as well as global commodity price shocks,” he cautioned.

He also pointed to growing concerns over international geopolitical tensions and shifting trade dynamics, such as the recent U.S.-led tariff disputes, which could disrupt financial flows and impact currencies in emerging economies like Ghana.

According to Dr. Asiama, the next phase of the central bank’s reform agenda will concentrate on boosting foreign exchange inflows and tightening oversight of the forex market to prevent speculative trading and improve transparency.

The MPC meeting is being held against a backdrop of sustained cedi strength and a cautious global economic environment. In March, the Committee raised the benchmark policy rate by 100 basis points to 28%—a move aimed at anchoring inflation expectations and supporting currency stability.

With inflation easing and the cedi showing resilience, many analysts are anticipating that the BoG may opt to maintain the current policy rate, as authorities balance the need for price stability with support for economic growth.

The MPC is expected to conclude its deliberations on Friday, May 23, 2025, with a press briefing to announce its latest policy decisions and provide guidance on the central bank’s monetary stance going forward.