The Bank of Ghana has reaffirmed its commitment to deepening economic reforms following the remarkable appreciation of the cedi, which has strengthened by nearly 19 percent year-to-date.
The rally, largely driven by fiscal discipline and tight monetary policies, is expected to be consolidated through measures aimed at sustaining foreign exchange inflows and reinforcing regulatory oversight in the forex market.
Speaking at the opening of the Bank’s 124th Monetary Policy Committee (MPC) meeting on Wednesday, Governor, Dr. Johnson Asiamah attributed the currency’s appreciation to a blend of sound monetary policies, improved market sentiment, and external sector stability.
“Importantly, the cedi has appreciated sharply by nearly 19 percent between April and May, helping to ease imported inflation pressures and restore public confidence”.
Despite the positive outlook, Dr. Asiamah acknowledged that persistent challenges remain, particularly inflation vulnerabilities and external price shocks.
“The inflation outlook, while improving, remains vulnerable to second-round effects, food supply constraints, especially from northern Ghana and the Sahel, and external price shocks,” he cautioned, referencing global market volatility and geopolitical risks that could disrupt financial flows in emerging economies.
With inflation control high on the agenda, the MPC convenes at a time of sustained currency strength and efforts to moderate inflation.
At its last meeting in March, the Committee raised the policy rate by 100 basis points to 28% to anchor inflation expectations.
The meeting concludes this Friday, May 23, with a media briefing to announce government’s new policy stance.
