BoG Governor Calms Nerves Over Cedi Stability, Cuts Policy Rate
Accra ,Ghana – September 17,2025 -
"We have enough reserves to cover imports in the fourth quarter as the Christmas festivities approach," Dr. Asiama said, adding that the central bank has strong control over cash flow and there's no cause for alarm over the currency's performance. "We have a perfect cash flow and we have figured everything out."
Key Highlights of BoG's Recent Actions:
- Foreign Exchange Reserves: The central bank's reserves have significantly exceeded targets set under the IMF's Extended Credit Facility (ECF)-supported program, reaching $9.3 billion at the end of February 2025 and $11 billion as of June 2025.
- Cedi Performance: The cedi has recorded one of its longest periods of stability against the US dollar, appreciating by 2.76% against the dollar as of April 2025.
- Monetary Policy: The BoG's MPC has lowered its benchmark policy rate by 350 basis points to 21.5%, citing a steady decline in inflationary pressures. This marks the second major cut this year, aimed at stimulating credit growth and supporting economic recovery.
Factors Contributing to Cedi Stability:
- Improved External Sector Performance: Strong remittances and better earnings from gold and cocoa exports have boosted market confidence.
- Effective Coordination: Fiscal and monetary policy coordination has helped reset market expectations and restore confidence.
- IMF Program: The recent Staff-Level Agreement with the IMF has played a crucial role in boosting investor confidence.
Dr. Asiama attributed the recent policy rate cut to anticipated sound monetary policy reforms and ongoing fiscal consolidation efforts, despite underlying risks. The BoG remains cautious about potential risks, including currency stability and proposed upward utility tariff adjustments.
Source – Lead News Online/Shiela Amerley Biala
