The Bank of Ghana (BoG) has robustly defended the cedi’s fundamental strength. It cautioned market participants against speculative activities, despite the currency’s 10.14 percent year-to-date depreciation against the US dollar.
Second Deputy Governor Matilda Asiedu-Asante stated that while the cedi faces renewed demand pressure, the country's economic fundamentals do not justify speculative attacks. She highlighted stronger external buffers, improving macroeconomic conditions, and sustained policy discipline. These factors continue to support exchange rate stability, according to the bank.
The cedi weakened 0.94 percent against the US dollar last week. It also depreciated 0.70 percent against the British pound and 1.24 percent against the euro. This pressure comes as Ghana aims for greater economic stability after exiting an International Monetary Fund (IMF) Extended Credit Facility program. Maintaining a stable currency is crucial for investor confidence and managing inflation.
Ms. Matilda Asiedu-Asante addressed attendees at The Money Summit 2026. She urged banks, importers, exporters, and investors to base transactions on genuine business needs. She stressed that fear-driven foreign exchange demand exacerbates currency volatility.
The central bank actively supplied US$250 million to the market through its regular auctions last week. However, demand significantly outpaced supply, with bids reaching US$518 million and US$485 million. Auction clearing rates for the dollar also increased, settling between GHS 11.68 and GHS 11.73. The BoG provided US$1 billion to the market in May. It plans to increase interventions to US$1.2 billion in June to improve liquidity.
Ms. Asiedu-Asante attributed some pressure to higher energy import costs and global geopolitical events. She noted that Ghana now requires almost 40 percent more foreign currency for oil imports. This rise is due to disruptions from the U.S.-Iran conflict. Despite these challenges, Ghana’s gross international reserves remain strong at US$14.4 billion as of May 18, 2026. This covers 5.7 months of imports, up from US$13.8 billion at the end of 2025.
The current account surplus also improved to US$3.10 billion in the first quarter of 2026. This compares to US$2.43 billion a year earlier. Strong gold and cocoa export earnings, coupled with resilient remittance inflows, supported this improvement. The central bank's rules-based foreign exchange intervention framework has helped manage volatility and maintain market confidence. Inflation has decreased from 23.8 percent in late 2024 to 23.4 percent in April 2026. The monetary policy rate also fell from 27 percent to 14 percent in the same period. Treasury bill rates decreased from approximately 28 percent to below 5 percent. Average lending rates eased to around 16 percent.
The Deputy Governor cautioned that these economic gains are fragile. They depend on maintaining policy discipline, especially as Ghana transitions to a Policy Coordination Instrument. The Bank of Ghana aims to build reserve buffers through the Ghana Gold Reserve Accumulation Programme (GAMRAP). This initiative targets 15 months of import cover over the medium term. The central bank also anticipates stronger bank balance sheets and increased domestic capital mobilization. This support will boost credit growth for agriculture, manufacturing, and small businesses.