Dr Johnson Asiama, the Bank of Ghana (BoG) Governor, has said the central bank sometimes deliberately allows the cedi to weaken slightly at certain periods as part of its broader economic management strategy.
The BoG Governor highlighted that recent movements in the value of the cedi should not necessarily be interpreted as a loss of control by the central bank.
According to Dr Johnson Asiama, allowing the foreign exchange market to adjust at certain times forms part of the Bank of Ghana’s policy approach.
Speaking at the launch of the Central Securities Depository’s InvestorConnect mobile application, the BoG Governor stated, “Sometimes it’s okay to allow the system to adjust. Sometimes it’s a deliberate policy to allow the cedi to depreciate a little bit. It’s all within the strategy”.
“Managing an economy, some days things might look challenging. It doesn’t mean we have lost control,” he said.
For months, the cedi recorded relatively strong performance against major currencies, backed by improved economic conditions and developments in the foreign exchange market.
However, the cedi’s recent weakness has added to pressure on domestic fuel prices, alongside changes in international refined petroleum product prices.
In related news, Dr Mahamudu Bawumia, the former Vice President and NPP Presidential Candidate for the 2028 election, has credited the Ghana cedi appreciation under the John Mahama-led NDC government to the IMF policy reversal in 2025.
Dr Bawumia revealed that Ghana’s IMF programme under the Akufo-Addo government contributed to the rapid depreciation of the cedi between 2022 and 2024.
According to Dr Bawumia, the IMF programme capped the Bank of Ghana’s foreign exchange market interventions at a maximum of $80 million per month.
Dr Bawumia argued that the IMF cap meant the Bank of Ghana could use a maximum of $960 million a year to support the cedi.
He disclosed that amount was far below Ghana’s monthly demand for foreign exchange to finance fuel, machinery, medicine and other imports.
Speaking on Thursday during a meeting with members of the Ghana Small-Scale Miners Association in Accra, Dr Bawumia stated, “One of the restrictions for the IMF programme that we engaged in was the amount of foreign exchange that the central bank could use to intervene to support the cedi. We were given a maximum of $80 million a month”.
“So, we were really constricted in terms of availability of foreign exchange. And at the same time, the cedi was depreciating almost on a daily basis,” he said.
He further explained that the restriction formed part of the IMF’s reserve accumulation strategy but created a foreign exchange scarcity in the market.
According to Dr Bawumia, the restriction was lifted in January 2025 after Ghana had built sufficient foreign exchange reserves through the Gold for Reserves programme.
He added, “Because we had built up the foreign exchange reserves through Gold-for-Reserves, that restriction was removed. And since then, the Bank of Ghana has been able to put in at least $1 billion a month in the market”.
He further cited the current level of intervention with the previous cap, “From $80 million maximum per month, or $960 million per year, to $1 billion a month. We couldn’t even do $1 billion a year before.”
He argued that the increased availability of foreign exchange following the removal of the restriction contributed to the stability of the Ghanaian cedi.
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