Dr. Johnson Asiama Debunks Rumours of Market Intervention, Highlights Policy Synergy and Investor Confidence
Amid rising speculation that Ghana’s central bank is artificially propping up the cedi through heavy dollar sales, Bank of Ghana (BoG) Governor Dr. Johnson Asiama has firmly refuted the claims, asserting that the recent stability in the local currency stems from sound policy reforms and improved macroeconomic fundamentals—not interventionist tactics.
In an exclusive interview with JoyBusiness’ George Wiafe during the IMF/World Bank Spring Meetings in Washington D.C., Dr. Asiama made clear that the Bank is not drawing on its foreign reserves to stabilize the cedi.
“The stability that we are witnessing now has nothing to do with the fact that we are selling reserves,” he stressed. Instead, the BoG is relying on market-friendly reforms and a surge in foreign exchange inflows to sustain the cedi’s upward momentum.
Since December 2024, the Ghanaian cedi has experienced rare resilience—appreciating by 2.76% against the US dollar as of April 2025. Commercial banks have responded accordingly, quoting the dollar as low as GH¢14.38, compared to a high of GH¢15.58—signals that the currency is enjoying a confidence boost among traders and investors alike.
Dr. Asiama also dismissed suggestions that Ghana may be drifting toward a fixed exchange rate regime.
“We believe in allowing market forces to determine the exchange rate. There’s no intention to return to a fixed system,” he reiterated.
Behind the scenes, a cocktail of positive trends is strengthening Ghana’s currency:
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Stronger export revenues from cocoa and gold are lifting the country’s external accounts.
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Record-high remittance inflows are supporting foreign exchange supply.
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Improved fiscal discipline, coordinated with monetary tightening, is reassuring markets.
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A weakening US dollar globally has offered additional breathing space for emerging market currencies like the cedi.
“The fiscal side has been supportive of the monetary measures,” Dr. Asiama said, emphasizing the value of coordinated economic management.
As the BoG signals a hands-off approach to exchange rate control, its broader message is clear—currency stability can be earned through structural reforms and sound economic stewardship, not by burning through reserves.
