The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has strongly maintained that the central bank is not pursuing a rigid exchange rate target or a predetermined band.
Dr. Asiama added that “the Bank of Ghana remains committed to a flexible exchange rate regime—one that is anchored in fundamentals, responsive to shocks, and supported by credible policy tools.”
He made this known at the Ghana Association of Banks’ Industry Thought Leadership programme themed, “Banking the Last Mile: An Industry-Led Strategy for Accelerating Digital Finance.”
“We remain vigilant and fully prepared to act in a timely and measured manner to preserve orderly market conditions,” he assured.
Dr. Asiama also noted, “the Bank of Ghana will continue to work to safeguard the broader macroeconomic stability necessary for financial innovation and inclusion to thrive.”
Background
The Bank of Ghana’s assurance comes at a time when there are strong indications that the government will work with an exchange rate of GH¢10 to GH¢12 to the dollar.
President John Mahama, at a recent engagement with some exporters at the Jubilee House, revealed that the real exchange rate value of the Ghana cedi against the United States dollar is in the range of GH¢10 to GH¢12.
President Mahama further revealed that, during a meeting with Dr. Asiama and Finance Minister Dr. Ato Forson, “the real value of the cedi was put anywhere between GH¢10 and GH¢12.”
Economic Advisor to the President, Seth Terkper, also stated on PM Express Business Edition on June 12, 2025, that the government is committed to stabilising the cedi at the GH¢10 mark to the US dollar.
Managing the Cedi’s Stability
Dr. Asiama emphasised that the central bank is committed to implementing measures to stabilise the cedi against the US dollar, without pursuing a fixed exchange rate regime.
“That is why the Bank of Ghana has adopted a disciplined, market-oriented approach—reducing its reliance on reserves and instead leveraging a more efficient FX auction framework,” he said.
He explained that the central bank is working to enhance market surveillance and ensure stricter alignment of foreign exchange demand with real-sector transactions.
Dr. Asiama reiterated that “the recent stability of the exchange rate is not accidental, nor is it the result of artificial interventions.”
“Rather, it reflects the cumulative impact of sound monetary policy, enhanced transparency in the foreign exchange market, and improved external sector fundamentals,” he added.
He cited the implementation of recent measures that have helped curtail speculative pressures and ensure that foreign exchange flows reflect legitimate trade, investment, and remittance activity.
Dr. Asiama credited the IMF-supported programme for stabilising the Ghana cedi, adding that “the macro-fiscal adjustments being implemented under the IMF programme are yielding results. Fiscal discipline is restoring credibility, and external financing flows have improved.”
“Combined with sustained disinflation, positive real interest rates, and resilient export and remittance inflows, these developments have anchored expectations and restored confidence in the currency’s value,” he concluded.