The transition reflects Ghana’s stabilising external sector, anchored by rising reserves and a stronger currency under the John Mahama administration.

The cedi appreciated 31.57 percent year-to-date against the U.S. dollar, trading at GH¢11.80 per dollar by late April 2025. Foreign reserves rose to US$10.7 billion, now covering more than three months of imports.

These gains were driven by strong performance in gold exports, cocoa receipts, and consistent outperformance of IMF reserve benchmarks. As a result, the BoG has discontinued discretionary FX interventions, replacing them with transparent auctions under an evolving framework.

A formalised FX intervention rulebook is expected to be in place by September 2025. In the interim, the BoG has taken steps to modernise its operations by phasing out legacy market arrangements, such as sell-buy-back structures, and adopting market-based pricing for gold purchases. The central bank aims to deepen the interbank FX market and foster a unified exchange rate regime, gradually eliminating multiple currency practices.

The International Monetary Fund has endorsed the BoG’s new direction, describing the move toward greater exchange rate flexibility as confidence-building for investors.

However, the Fund has advised continued monitoring of gold-related liquidity risks, given that gold now accounts for 13 percent of the BoG’s reserve holdings.

In September 2024, the BoG revised its reference rate calculation method to enhance pricing transparency in the FX market.

Governor has reiterated the central bank’s commitment to modernising its tools while safeguarding reserve adequacy and financial market stability.

Despite the external gains, inflationary pressures persist. Ghana’s headline inflation stood at 10.2 percent in April 2025, above the BoG’s 8±2 percent target band.

The Monetary Policy Committee raised the policy rate by 100 basis points to 28 percent in March, citing non-food inflation as a key driver. The bank is expected to maintain a cautious monetary stance until inflation trends decisively downward.

The currency reforms are part of broader macroeconomic adjustments under Ghana’s US$3 billion IMF programme, which has reached its fourth successful review.

The IMF has called for continued structural reforms, particularly in public financial management, to reinforce recent gains and reduce long-term vulnerabilities.