Be Rest Assured, Prices Will Reduce Soon to Reflect Cedi Gains - BoG Governor
Accra, Ghana - 24 May, 2025 - The Governor of the Bank of Ghana, Dr. Johnson Asiama, has hinted at a potential decrease in the prices of goods and services in the coming months. This anticipated drop is attributed to the recent appreciation of the Ghanaian cedi, which is expected to have a positive impact on the economy.
According to Dr. Asiama, the sustained strengthening of the local currency will help ease import-related cost pressures.
Speaking at a press briefing after the Monetary Policy Committee meeting on May 23, 2024, Dr. Asiama explained that inflation dynamics typically lag behind exchange rate movements.
However, with the cedi's recent gains, consumers can expect a gradual reduction in prices as competition drives retailers and importers to reflect the improved currency performance in their pricing decisions.
The cedi has seen significant gains, appreciating by nearly 24% year-to-date against major trading currencies. Dr. Asiama emphasized that while the appreciation of the cedi is positive, it's essential to consider its impact on export competitiveness.
He reassured that the current gains do not pose a structural risk to the economy's trade performance.
“You can understand that some people stock their goods at a higher exchange rate. So naturally, even with the appreciation – it takes a while for you to see that adjustment. However, rest assured that you will see the adjustment certainly so long as there is competition, so long as it is not a monopoly, and we will see that kind of phenomenon very soon,'' he stated.
“Much as you want to have cedi stability in nominal terms, the important thing here is to ensure that in real terms, the cedi is not appreciating persistently. We think that where we are now, we don’t have that problem of real appreciation that would adversely impact our competitiveness.”
As of the latest data, the cedi is trading at around GH₵11.85 to the US dollar, GH₵15.84 to the British Pound, and GH₵13.34 to the Euro.
This development marks a notable turnaround from the sharp depreciation trends seen in recent years.
Source: Lead News Online
