Professor Godfred Bokpin of the University of Ghana has identified fiscal indiscipline as the key factor limiting the central bank’s ability to use monetary policy effectively to control inflation and stimulate growth.

Speaking at the Currency Anniversary Conference in Accra on Tuesday, November 18, 2025, as part of the Cedi@60 celebrations, Prof. Bokpin said Ghana, like many African countries, has not fully leveraged the complementary relationship between monetary and fiscal policy.

“Our currency, like any other around the world, is a symbol of sovereignty. While the Cedi has experienced ups and downs, the real challenge lies on the fiscal side,” he explained.

He noted that before the introduction of the Cedi in July 1965, inflation was relatively low at 0.98%. By the end of that year, inflation had surged to 26.4%. “Since then, Ghana has rarely enjoyed sustained low inflation. This is not primarily due to the Cedi itself, but rather the fiscal side, which has historically run an average deficit of 6.8% since independence. Such deficits undermine the central bank’s ability to deploy monetary policy effectively,” Prof. Bokpin said.

He added that for inflation-targeting frameworks to succeed, fiscal discipline is essential. “When the fiscal side misbehaves, monetary policy becomes subordinate to it, limiting its effectiveness in managing inflation and fostering growth,” he said.

Also speaking at the conference, Dr. Phillip Abradu-Otoo, Director of Research at the Bank of Ghana (BoG), highlighted the need for the central bank to adopt a proactive approach to payment systems.

He emphasised that as Ghana transitions from cash to digital money, and with the rise of FinTechs, the BoG must closely monitor institutions in the payment value chain to prevent systemic risks.

“The payment landscape is constantly evolving. Innovations are emerging all the time, and the central bank needs to be agile and forward-looking to ensure order and stability,” he said.

The conference was part of the year-long Cedi@60 celebrations, reflecting on the journey of Ghana’s national currency and its role in economic and institutional life.

In his welcome remarks, BoG Governor Dr. Johnson Pandit Asiama highlighted the historical and symbolic importance of the Cedi. “The Cedi carries history, meaning, and a sense of collective identity. It has mirrored Ghana’s triumphs, bold reforms, and periods of hardship, remaining central to policymaking, market sentiment, and daily life,” he said.

Dr. Asiama noted that over six decades, the Cedi has been integral to families, businesses, and communities, and continues to play a critical role in economic planning and commerce.

Looking ahead, he said the next generation will engage with the Cedi in new ways, shaped by digital technologies, instant value transfers, and rising expectations for transparency and convenience. “Our responsibility is to ensure the Cedi, in all its forms, continues to serve the aspirations of Ghanaians. Cash and digital channels must evolve together, underpinned by strong economic stewardship and institutional stability,” he said.

The Governor also stressed the importance of protecting the Cedi against currency substitution and dollarisation, while advancing digital payment initiatives like the eCedi to ensure secure, interoperable, and widely accessible financial services.