Ghanaians may be on the brink of economic relief as the Bank of Ghana hints at a gradual decline in the cost of goods and services, following the local currency’s exceptional performance in recent months.
Governor of the Bank of Ghana, Dr. Johnson Asiama, says the strong appreciation of the cedi—up 24.1% against the US dollar so far this year—is expected to ease import-related inflation pressures, ultimately reducing consumer prices across key sectors.
Speaking after the Monetary Policy Committee’s 124th meeting, Dr. Asiama explained that while inflation trends typically respond to currency movements with a lag, the economy is “on course” to see the benefits.
“Retailers may have stocked inventory at higher exchange rates, but over time, competition will force prices to adjust downward,” he noted.
The cedi now trades at GH₵11.85 to the dollar, GH₵15.84 to the pound, and GH₵13.34 to the euro—a sharp improvement from GH¢15.53 to the dollar just two months ago.
Dr. Asiama credited decisive monetary policy, particularly the March interest rate hike to 28%, along with stronger economic fundamentals, for restoring confidence and reducing inflation, which dropped to 21.2% last month.
However, he cautioned against premature celebration. “The recovery, while encouraging, remains vulnerable to external shocks, supply disruptions, and geopolitical uncertainties,” he warned.
The central bank is calling on importers and retailers to align prices with the current exchange rate, reinforcing the importance of market responsiveness in achieving sustainable disinflation.
