Ghana’s Economy Shows Signs of Recovery as Cedi Stabilizes and Inflation Falls – BoG Governor
Ghana’s economy is showing clear signs of recovery after a challenging period of high inflation and currency instability, the Governor of the Bank of Ghana (BoG), Johnson Pandit Asiama, told Parliament on Monday, March 9, 2026. He attributed the improvements to a combination of tight monetary policies, strengthened foreign exchange operations, and strategic measures to stabilize the financial sector.
When Dr. Asiama assumed office in February 2025, the country was still grappling with the aftermath of rapid cedi depreciation, surging inflation, and the effects of a Domestic Debt Exchange Programme. Inflation had peaked at 23.8% by the end of 2024, while the cedi had lost nearly a quarter of its value, creating challenges for businesses, households, and the overall economy.
Since then, the central bank has implemented measures including tighter monetary policy, enhanced open market operations, and a new foreign exchange framework to improve market transparency. These steps, alongside initiatives like the Domestic Gold Purchase Programme and higher export earnings, helped diversify and strengthen Ghana’s external reserves, which reached $13.8 billion by the end of 2025.
The results have been tangible: headline inflation fell dramatically to 3.3% by February 2026, borrowing costs have declined, and the Ghanaian cedi has stabilized and strengthened. The banking sector has also rebounded, with capital adequacy improving to 17.5%, non-performing loans declining, and total deposits rising by nearly 18%. Credit growth to households and businesses has begun to recover, signaling a return to normal economic activity.
Dr. Asiama emphasized that while these improvements reflect progress, the BoG remains cautious about global risks such as commodity price shocks and financial market volatility. He reassured Ghanaians that stabilization efforts are effective, noting: “For ordinary Ghanaians, the real measure of this progress is simple: prices are stabilising, the cedi is steadier, and the economy is moving back toward normal.”
source: graphic