Parliament Urges Bank of Ghana to Safeguard Cedi Gains Amid Global Trade Dynamics

The Trade, Industry and Tourism Committee of Ghana’s Parliament has urged the Bank of Ghana (BoG) to intensify its monitoring and regulatory efforts to ensure the sustained stability of the Ghanaian Cedi. The committee’s call comes in response to the currency’s significant appreciation in the first half of 2025, a trend seen as a hopeful sign for the nation’s economic recovery.

Between January and late May 2025, the Cedi appreciated from approximately GHS 15.00 to GHS 10.20 per U.S. dollar. This sharp improvement has been attributed to a stronger performance in traditional export sectors and an increase in remittance inflows from Ghanaians abroad, which have helped shore up foreign exchange reserves.

Committee Chairman Alexander Roosevelt emphasized that while the current trend is encouraging, it requires careful management. He pointed out that previous access to U.S. dollars had encouraged the dollarisation of Ghana’s economy, which undermined the Cedi. He stressed that such a scenario must be avoided through proactive policies.

Roosevelt further advised that the Bank of Ghana must closely observe both global and local trade movements as well as foreign currency flows. This approach, he noted, will help prevent the re-emergence of volatility in the currency market and maintain investor confidence in the economy.

The Committee’s position underscores wider concerns about exchange rate instability and its ripple effects on inflation, trade competitiveness, and long-term economic planning. Parliament appears united in its appeal for the central bank to act decisively to consolidate the recent gains made in the strength of the national currency.

Source: Citi newsroom