The Governor of the Bank of Ghana, Dr. Johnson Asiama, has described the recent pressure on the cedi as a temporary issue, caused by short-term cash flow challenges. He assured that the cedi’s stability would return soon, thanks to decisive measures the central bank has implemented in recent months.

Dr. Asiama explained that Ghana’s managed floating exchange rate system allows for occasional fluctuations, but stressed that the current challenge is short-lived. He also noted that the cedi’s earlier appreciation may have triggered higher import demand, adding to pressure on the currency.

In recent weeks, the cedi has weakened from around GHS10.40 to over GHS11 per dollar due to limited dollar supply. However, the BoG has responded by tightening regulations and addressing remittance leakages.

Dr. Asiama dismissed claims that the central bank is running out of dollars, insisting Ghana has sufficient reserves. He emphasized that the BoG supports, but does not dominate, the FX market, and is working to strengthen interbank liquidity and improve market function.

He also revealed that some remittance and payment firms were offshoring foreign exchange and experimenting with crypto-based settlement methods, which the BoG is now regulating to protect the cedi.

The Governor expressed confidence that ongoing IMF support, sound macroeconomic fundamentals, and active reserve management will help restore stability to the currency in the near term.