Abdul Kabiru Mahama, Member of Parliament for Walewale, has credited the recent appreciation of the Ghanaian cedi to the Bank of Ghana’s (BoG) strategic injection of hard currency into the market, arguing that the move has calmed market anxieties and reduced speculative pressure.
Speaking on Channel One TV’s The Big Issue on Saturday, May 17, Mahama noted that the BoG’s decision to release nearly $500 million in April through foreign exchange auctions has been a critical factor in stabilizing the local currency.
“The Bank of Ghana’s intervention, injecting about $500 million into the market, has helped bring stability. When people see that dollars are readily available, there’s less incentive to hoard or scramble for foreign currency, which ultimately eases pressure on the cedi,” Mahama said.
He argued that this strategy, which relies on using the country’s foreign reserves to meet market demand, has reassured businesses and traders that they can access dollars when needed, reducing panic and speculative buying.
However, some analysts have cautioned against attributing the cedi’s recent strength solely to the central bank’s interventions.
Prof. Eric F. Oteng-Abayie of the Kwame Nkrumah University of Science and Technology (KNUST) highlighted that broader economic reforms and favourable global conditions have also played a role in supporting the cedi’s recovery.
The local currency, which had struggled in the first quarter of 2025, has recently shown significant gains, trading at 12.4 cedis to the dollar, offering some relief to importers and consumers alike.
