BoG Maintains Flexible Exchange Rate Policy, Rejects Fixed Band Approach, Governor Asiama-Ghana
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has stated that the central bank is not targeting a fixed exchange rate or operating within a predetermined band. Speaking at the “Banking the Last Mile” event on June 17, 2025, he emphasized the Bank’s commitment to a flexible exchange rate regime driven by economic fundamentals and equipped to handle external shocks. He noted that this strategy aligns with efforts to maintain macroeconomic stability and support innovation in Ghana’s financial sector.
Dr. Asiama assured stakeholders of the Bank’s vigilance and readiness to act in response to market developments. According to him, maintaining orderly market conditions is essential for sustaining macroeconomic gains, particularly as Ghana continues to embrace digital financial solutions. He stressed that the BoG would continue using credible policy tools to manage market fluctuations.
Refuting claims of artificial support for the cedi, the Governor pointed to a combination of disciplined monetary policy and improved macroeconomic fundamentals as the true drivers of exchange rate stability. He highlighted improvements in foreign exchange management, including a more efficient auction system and tighter controls to ensure alignment with real economic activities.
Dr. Asiama further elaborated on how speculative pressures have been curbed by these reforms. He noted that foreign exchange flows now largely reflect legitimate trade, investment, and remittances. These policies, according to him, have reinforced market confidence and minimized volatility, without heavy reliance on foreign reserves.
In conclusion, the Governor credited Ghana’s IMF-supported fiscal consolidation program with strengthening investor confidence and boosting foreign capital inflows. This, combined with disinflation, credible interest rate policies, and robust export and remittance performance, has helped stabilize the cedi and anchor expectations, reaffirming the success of Ghana’s market-oriented economic management.
Source: Citi newsroom