This commitment was articulated by Governor Dr. Johnson Asiama at the opening of the Bank’s 124th Monetary Policy Committee (MPC) meeting on Wednesday, May 21, 2025.

The local currency has shown significant strength between April and May, a rally largely attributed to a combination of coordinated fiscal discipline and tight monetary policy measures.

Governor Asiama highlighted the positive impact of this trend, stating, “Importantly, the cedi has appreciated sharply by nearly 19 percent between April and May, helping to ease imported inflation pressures and restore public confidence. The appreciation reflects a combination of factors, including prudent monetary policy, improved market sentiment and external sector gains.”

Dr. Asiama revealed that the central bank’s next phase of reforms will primarily focus on sustaining foreign exchange inflows and strengthening regulatory oversight within the forex market to ensure the longevity of the cedi’s gains.

Despite the improving outlook, the Governor quickly cautioned that significant underlying economic challenges persist. He stated the vulnerabilities in the inflation outlook, citing potential “second-round effects, food supply constraints, especially from northern Ghana and the Sahel and external price shocks, particularly given volatile global commodity markets.”

Dr. Asiama also pointed to broader global uncertainties, adding, “Geopolitical tensions and evolving global trade dynamics, including the recent US-led tariff disputes, have heightened market uncertainty and could affect commodity prices, exchange rates, and financial flows in emerging markets like ours.”

The current MPC meeting is being held at a crucial time, marked by sustained cedi strength against the US dollar and ongoing efforts to rein in inflation.

At its last meeting in March, the Committee raised the policy rate by 100 basis points to 28 percent, a move Dr. Asiama had then deemed necessary to anchor inflation expectations.

However, with visible signs of currency stability and easing global pressures, market sentiment is now tilting towards a policy rate retention to guide lending rates and overall economic recovery.

The MPC meeting is set to conclude this Friday, May 23, 2025, with a press briefing where the new policy stance will be officially announced.

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