Dr Johnson Asiama, Bank of Ghana Governor

Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has assured the public that Ghanaians can expect to see reductions in the prices of goods and services in the coming weeks, following the recent appreciation of the Cedi against the US Dollar, provided market competition is strong.

Speaking at the 124th Monetary Policy Committee (MPC) press conference in Accra on Friday, May 23, 2025, Dr Asiama acknowledged concerns about the delayed impact of the Cedi’s gains on retail prices.

He explained that the lag is partly due to the timing of stock purchases by traders.

“You can understand that some people stock their goods at a higher exchange rate, and so naturally, even with the appreciation, it takes a while for you to see that adjustment,” Dr Asiama said.

“However, rest assured that you will see the adjustment certainly so long as there is competition, so long as it is not a monopoly, and we will see that kind of phenomenon very soon,” he added.

On the sustainability of the Cedi’s appreciation, Dr Asiama said the BoG had carefully reviewed the dynamics behind the currency’s movement and found no indication that it would harm Ghana’s competitiveness in real terms.

“The Cedi appreciation has to be put into proper context. Much as you want to have Cedi stability in nominal terms, the important thing here is to ensure that in real terms, the Cedi is not appreciating persistently,” he said.

“The MPC went into a lot of deliberations, looked at the real movement of the exchange rate, and we think that where we are now, we don’t have that problem of real appreciation that would adversely impact our competitiveness,” he explained.

Dr Asiama however emphasised that the recent appreciation of the Cedi is market-driven and not the result of direct intervention by the central bank.

“The appreciation is largely driven by the markets, it is not something that the central bank is using its reserves for. If you look at the data pack we have put out, you can see that our reserve programme is growing, so we are not using our reserves to intervene in the market,” he noted.

He credited the gains to sound economic policy and positive international inflows, adding, “For us, it is about maintaining exchange rate stability.”

Before responding to the questions, Dr Asiama announced that the MPC had decided to maintain the policy rate at 28 percent, signaling the BoG’s continued cautious stance in the face of inflation risks and external uncertainties.

MA