Export-oriented businesses in Ghana are being encouraged to reinvest their foreign exchange earnings within the country to help sustain the recent appreciation of the Ghanaian Cedi.

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, made the appeal during his keynote address at the Graphic Business/Stanbic Bank Breakfast Meeting. He described the cedi’s current strength as a potential turning point for Ghana’s economy but stressed that lasting stability depends on strategic corporate behaviour and sound reinvestment practices.

“The more value we keep within Ghana, the stronger the cedi becomes,” Dr. Asiama said. “Firms that invoice in cedis or reinvest their export earnings locally are not only reducing their own exposure to risk – they are reinforcing the economic ecosystem.”

The Ghanaian cedi has appreciated by over 42 percent so far this year, offsetting much of the depreciation experienced in 2022 and 2023. Additionally, Ghana’s foreign exchange reserves have climbed to US$11.1 billion, equivalent to nearly five months of import cover.

However, Dr. Asiama warned that structural issues, including low domestic retention of export proceeds and widespread dollarisation, are diluting the full benefits of these gains.

“Too many exporters retain their earnings offshore or fail to channel them into productive investment within Ghana,” he said. “There’s a clear mismatch between inflows and local reinvestment – and that’s a problem.”

To address this imbalance, the Bank of Ghana is preparing new policy measures. These include linking access to public procurement opportunities and credit facilities to proof of reinvestment of export earnings within the country. The central bank is also considering tax incentives to encourage compliance, especially among small and medium-sized enterprises (SMEs).

Dr. Asiama emphasized that such reforms aim to build a more self-reliant economy by ensuring that foreign exchange inflows contribute directly to domestic growth.

Another key concern highlighted was the entrenched use of foreign currency, particularly the US dollar, in local transactions — especially within the real estate and education sectors.

“We will step up enforcement of legal tender laws,” Dr. Asiama warned. “Continued dollar pricing in domestic transactions undermines the cedi’s credibility and must be addressed.”

While acknowledging that the cedi’s appreciation has led to lower inflation and renewed investor confidence, Dr. Asiama cautioned that prolonged currency strength could undermine Ghana’s export competitiveness if not properly managed.

He concluded by noting that the Bank of Ghana will remain flexible, adjusting its policy stance in response to changing data and market dynamics.

“This is a crucial moment for Ghana’s economic future,” he said. “We must all work together—government, businesses, and regulators—to ensure the cedi’s strength translates into long-term prosperity.”