Speaking at the Cedi@60 celebrations in Accra, Dr Johnson Asiama said the economy has “turned a decisive corner,” backed by compelling evidence of progress.

He revealed that headline inflation continues to decline and is expected to end the year even lower, reflecting the effectiveness of the Bank’s monetary policy measures.

Dr. Asiama also highlighted the impressive performance of the local currency, noting that the Cedi has appreciated by 37 percent as of October 17, 2025.

“I’m proud to say we have turned a decisive corner, and indeed the evidence is compelling. Headline inflation is down, and the Cedi has appreciated strongly. These gains reflect the impact of sound and disciplined economic management,” the Governor said.

He added that the Bank remains committed to sustaining the gains through prudent policy interventions aimed at maintaining price stability and strengthening confidence in the Ghanaian economy.

“The Bank of Ghana remains fully committed to sustaining the gains we have made. We will continue to implement prudent and forward-looking policies to maintain price stability, strengthen the Cedi, and support overall economic growth”, he said.

The Bank of Ghana on Tuesday, October 28, 2025, launched a year-long commemoration of the milestone at the Accra International Conference Centre under the theme, “60 Years of the Cedi: A Symbol of Sovereignty, Stability, and Economic Resilience.”

Speaking on the floor of Parliament, Second Deputy Minority Whip, Jerry Ahmed Shaib, said all leaders who have played a role in strengthening the Cedi deserve to be acknowledged.

“I want to look at it from the angle that whoever has contributed to the proper evolution of the Cedi must be commended and celebrated. We have a list of names, and President Mahama is one of them, but anybody who has been president since the inception of the Cedi must be commended,” he stated.

He further stressed that former President Nana Addo Dankwa Akufo-Addo, who served for eight years, should be recognized as a major contributor to the Cedi’s stability.

Speaking at the official launch of the 60th anniversary of the Cedi in Accra on Tuesday, October 28, Dr Asiama noted that the improved reserves position reflects prudent monetary management, favourable trade inflows, and ongoing fiscal consolidation efforts.

“Our gross international reserves are currently $12 billion,” he said.

He explained that the current reserve level is offering “a robust cushioning against external volatilities,” safeguarding the cedi and supporting stability in the foreign exchange market.

He reiterated the Bank’s resolve to pursue sound monetary policies aimed at preserving the gains achieved so far, while continuing to promote a resilient and inclusive financial sector that supports sustainable economic growth.

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Speaking at the launch of the 60th anniversary of the cedi in Accra, Dr Forson cautioned against the growing trend of pricing goods and services in foreign currencies, particularly the US Dollar, describing it as a practice that undermines the stability and integrity of the cedi and Ghana at large.

“Let me use this opportunity to once again stress that as Ghanaians, the Ghana Cedi remains the only legal tender; the US dollar is not our currency; the Cedi is our only currency,” he said.

He emphasised that trading in foreign currencies fuels exchange rate pressures and weakens confidence in the domestic economy.

“The continued pricing of goods and services in the US dollar will only hurt us; let’s stop it and let us stop it now.”

The minister, therefore, called on all citizens, traders, and institutions to demonstrate patriotism by supporting the cedi and reinforcing its use in daily economic activity.

“The Cedi is the only currency we have, let us protect it, let us trade with it and let us defend it with all vim within us. Let us talk about the Cedi with pride not as a burden.”

Source: Albert Kuzor  

Speaking at the Cedi@60 celebrations in Accra, the Vice President said rebuilding trust in the Ghanaian currency requires coordinated efforts between the central bank, financial institutions, and the private sector.

“The Bank of Ghana must continue to work closely with banks, businesses, and market players to strengthen stability and rebuild confidence in the Cedi,” she said.

She noted that while recent data shows encouraging signs of recovery including a stronger Cedi and easing inflation the gains must be consolidated through discipline and partnership.

The Vice President also called on the Ministry of Finance to uphold strict fiscal responsibility, noting that prudent public spending and debt management remain critical to sustaining macroeconomic stability.

“The Ministry of Finance must continue to uphold fiscal responsibility. Monetary stability can only be effective when supported by sound fiscal policies,” she added.

Professor Naana Opoku Agyeman commended the Bank of Ghana for its decisive policy measures in recent years, which have helped curb inflation, stabilize the Cedi, and restore investor confidence.

She said government remains committed to working with the central bank and other economic actors to build a resilient, self-reliant economy capable of withstanding future shocks.

Source: James Eshun   

Speaking at the launch of the Cedi@60 celebrations on Tuesday, October 28, at the Accra International Conference Centre, Dr. Forson described the milestone as a “new dawn” in Ghana’s journey toward economic sovereignty and resilience.

“For 60 years, through cycles of inflation, devaluation, redenomination, and recovery, the Cedi remains the enduring symbol of our national sovereignty,” he said. “Our commitment to fiscal discipline has strengthened the Cedi, and we shall stay the course to ensure its continued stability.”

He cautioned against quoting prices in foreign currencies, particularly the US dollar, noting that such practices weaken public confidence and distort the local market.

“As citizens, we have a shared duty to preserve the sanctity of the Cedi as our legal tender,” he said. “We must eschew acts that undermine its value, especially the pricing of goods and services in foreign currency.”

The Cedi@60 celebration, themed “60 Years of the Cedi: A Symbol of Sovereignty, Stability and Economic Resilience,” commemorates Ghana’s replacement of the Ghanaian pound with the Cedi in 1965 — a milestone that affirmed the country’s monetary independence.

Government officials say sustained fiscal discipline, prudent monetary policy, and stronger oversight of currency practices will be key to restoring and maintaining confidence in the Cedi, supporting long-term economic stability and growth.

Soure: AdomOnline

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He said the Cedi@60 celebration should be seen not merely as a ceremonial milestone but as a renewed call to defend the country’s economic sovereignty.

Speaking at the anniversary event themed “Sovereignty, Stability, and Resilience” in Accra, Dr. Asiama said the occasion was a time for reflection on Ghana’s financial journey and the collective responsibility to preserve the gains made over the decades.

“Let me be clear, this is not just another policy event. It is a moment for Ghana to pause and reflect — not on what we have built so far, but on what we must now protect and advance,” he stated.

“This anniversary belongs to all of us because when we celebrate the Cedi, we celebrate our journey towards economic self-reliance and national confidence,” he added.

Dr. Asiama recounted Ghana’s landmark decision in 1965 to replace the Ghanaian Pound with the Cedi, describing it as a “powerful declaration” of economic independence and self-determination.

“Sixty years ago, Ghana made a powerful declaration. We said farewell to the Ghanaian Pound and introduced the Cedi, our very own national currency. In doing so, we were not just changing banknotes — we were affirming that Ghana’s independence must include the ability to define and defend our own monetary destiny,” he said.

Reflecting on the Cedi’s evolution, the Governor highlighted key reforms, including redenominations in 1967 and 2007, as well as the addition of security features, commemorative editions, and Adinkra symbols that celebrate Ghanaian heritage.

“Each transformation over the years — from the integration of advanced security features and commemorative notes to the use of indigenous symbols and portraits of our national heroes — reflects Ghana’s story: one of resilience, innovation, and pride,” he remarked.

He emphasised that the Cedi remains more than a means of exchange — it is a symbol of national pride and shared determination.

“Whether it’s exchanged in bustling markets, used to pay salaries, or saved for future dreams, the Cedi stands as a lasting symbol of our journey and our unyielding commitment to shape our own destiny,” Dr. Asiama said.

The Cedi@60 celebration marks six decades since Ghana introduced its national currency, replacing the Ghanaian Pound in 1965, symbolising the nation’s continuous pursuit of economic sovereignty and stability.

Source: Adomonline

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Speaking on Joy FM’s Super Morning Show, he said key economic indicators such as inflation, interest rates, and fiscal deficit are trending in the right direction — helping to support the cedi’s performance.

“I think the cedi has relatively stabilised and confidence in holding the currency has really increased,” Prof. Quartey stated.

He explained that the government’s efforts to reduce overspending and maintain a “decent deficit” while stimulating sustainable economic growth are contributing to the positive outlook.

The ISSER economist also praised the Bank of Ghana for its active communication and engagement efforts, which he believes help strengthen public trust in monetary policy.

“You need to get people to have confidence in the economy and confidence in the cedi,” he said, recommending that financial education be extended to young people, similar to practices by the Bank of England.

This year marks 60 years since the introduction of the Ghana cedi as a symbol of national sovereignty and economic resilience. The celebration has revived discussions about ensuring long-term currency stability.

With the cedi expected to end the year appreciating against the US dollar — a rare occurrence since the redenomination in 2007 — Prof. Quartey noted that there is hope for sustained progress but emphasised the need to “continue building confidence” in the local currency.

Source: Caleb Ahinakwah  

This is relative to GH¢6.7 billion recorded during the same period in 2024.

According to the September 2025 Monetary Policy Report, the banking sector posted a growth in all income lines in August 2025, with other income growing at 47.3% compared to a contraction of 2.9% for the same period last year.

Net interest income picked up by 21.8% to GH¢19.2 billion from 16.9% in August 2024.

On year-on-year basis, interest income improved by 21.5% to GH¢29.3 billion in August 2025 from GH¢24.3 billion in August 2024.

Interest expense also increased to GH¢10.2 billion in August 2025 from GH¢8.4 billion in August 2024, representing a growth rate of 20.9%, relative to the 22.1% growth recorded in August 2024.

The growth in net interest income is attributable to the slowdown in interest expense due to lower interbank lending rates in August 2025 compared to August 2024.

Net fees and commissions recorded a growth of 13.1% in August 2025, down from 22.9% a year ago, while “other income” surged by 47.3% to GH¢4.8 million compared to a contraction of 2.9% in August 2024.

These developments resulted in a 28.0% growth in the industry’s net operating income in August 2025, compared with the 10.9% growth recorded a year ago.

The cost lines also recorded similar increases in August 2025; however, the difference in growth rates between August 2025 and August 2024 was marginal.

According to the report, the banking industry’s operating expenses grew by 19.5% in August 2025, compared to 18.9% in 2024, on the back of a negligible growth in staff costs and other operating (administrative) expenses.

The provisions for depreciation, bad debt and impairment losses on financial assets contracted further by 46.0% in August 2025, compared to the 19.2% contraction recorded in August 2024. This is on account of the increase in write-offs and recoveries during the review period.

Return on Assets and Return on Equity

The banking sector’s profitability indicators, namely, return-on-assets (ROA), and return-on-equity (ROE), improved during the period under review.

This follows the robust growth of profit-before-tax and profit-after-tax.

The ROE increased from 31.4% in August 2024 to 32.2% in August 2025, while the ROA also went up to 5.6% from 4.9% over the same comparative period.

Source: Joy Business

This was supported by improved market sentiment and steady central bank interventions.

It appreciated to GH¢10.85 per US dollar (+9.68%), GH¢14.42 per pound (+10.00%), and GH¢12.61 per euro (+9.16%) on the interbank market.

Retail market activity reflected similar momentum, with the cedi advancing 6.53% against the US dollar to close at GH¢12.25 from GH¢13.05, 5.54% against the pound to GH¢16.25 from GH¢17.15, and 5.26% against the euro to GH¢14.25 from GH¢15.00.

Over the past two weeks, the cedi has clawed back most of its losses as enhanced foreign exchange liquidity from the central bank has eased negative sentiment, likely triggering sell-offs by some market participants to unwind earlier high positions.

This corrective reaction most likely fuelled the sharp appreciation.

“In the coming weeks, we expect relative stability following the release of pent-up market momentum. Sustained foreign exchange inflows and renewed confidence ahead of the budget presentation should anchor this outlook. With gold’s reclassification as a top-tier liquidity asset under Basel III ‘Endgame’ reforms and shifting reserve preferences among central banks, confidence in hard assets has strengthened,” Databank Research said.

Together with the expected US$385 million disbursement in December 2025, its near-term outlook for a stronger cedi remains firm.

Meanwhile, the local currency started this week recording some further gains against the US dollar.

It is going for GH¢12.10 to one American greenback in the retail market.

Its year-to-date gain stands at 28.84% to one US dollar.

Source: Joy Business

Speaking on Joy FM’s Super Morning Show during the launch of Cedi@60 on Tuesday, Mr Awuah said the banking sector had faced supply constraints at the peak of Ghana’s economic crisis in 2022 and 2023, when the Central Bank assumed temporary control over forex inflows from major exporters such as mining, oil, and telecom companies.

“At the height of the crisis, the Central Bank took some temporary measures of having almost absolute control over the currency in terms of supply,” he explained.

“Given the level of stability we’ve had, the Central Bank has revised or unwound that policy, which is a very key one because all the market is looking for is assurance of supply.”

He noted that routing export proceeds directly to the BoG limited the ability of commercial banks to intermediate effectively. The reversal, he said, now allows mining and oil companies to channel forex through the banking system again, ensuring improved liquidity.

Mr Awuah also highlighted changes to the net open position policy, which regulates how much foreign currency banks can hold at any given time. The BoG has reduced the long position threshold from +5 to zero.

“If you are a bank and you get dollar supply, you have no business keeping it on your balance sheet,” he stressed.

“As dollars or euros are coming in, you have to offload to the market. When you do that, you improve the supply.”

The GAB CEO said the policy is designed to discourage hoarding and strengthen market confidence by ensuring forex reaches importers and businesses that need it.

Cedi@60 — themed “60 Years of the Cedi: A Symbol of Sovereignty, Stability, and Economic Resilience” — marks six decades since Ghana introduced the cedi as its national currency.

The celebration comes at a time when the government and central bank continue efforts to support sustained currency stability amid global economic pressures.

Mr Awuah reaffirmed the banking sector’s commitment to working closely with the BoG and the Ministry of Finance to maintain the cedi’s stability and reinforce public confidence in Ghana’s currency.

Source: Caleb Ahinakwah  

Sources with knowledge of Ghana’s IMF programme in Washington, D.C., told Joy Business that this date follows a staff-level agreement reached with Ghana in October 2025.

According to insiders, the board meeting is scheduled for December to allow sufficient time for the final staff report on Ghana to be prepared for the Executive Board’s consideration.

A key document currently awaited is the Audit Report on Arrears, which is expected to be released by the government later this week.

The report will undergo scrutiny across several IMF departments before submission to IMF Management for review.

Following this process, a slot will be secured for the Executive Board to assess the report. If Ghana passes the assessment, the board is expected to approve a disbursement of approximately $380 million to the Bank of Ghana, likely before mid-December 2025.

Sources indicate that, given Ghana’s current performance, it is highly likely the Executive Board will approve the Fifth Programme Review.

Impact on Markets and Investors

Market analysts note that the significance of the board approval goes beyond the US$380 million disbursement.

The decision will send a strong signal to donors and investors about Ghana’s commitment to fiscal discipline and adherence to IMF programme conditions.

Government officials have also assured markets that fiscal discipline will continue after Ghana exits the IMF programme in May 2026.

While concerns have been raised about the risk of unsustainable spending post-programme, sources insist that Ghana’s current performance under the IMF demonstrates a strong commitment to prudent economic management.

To further bolster investor confidence, the government is reportedly considering subscribing to one of the IMF’s policy instruments, though not a full programme.

Officials argue this would provide an additional signal of stability and assure markets that fiscal discipline will be maintained.

IMF Highlights Ghana’s Progress

The IMF has acknowledged Ghana’s meaningful progress in establishing a foundation for fiscal discipline post-programme.

During a press conference in Washington, D.C., IMF Director of Communications Julie Kozack highlighted key initiatives, including a revamped fiscal responsibility framework, the establishment of an independent fiscal council, and improvements in public financial management aimed at enhancing the efficiency of public spending.

Fifth Programme Review Details

On October 10, 2025, the IMF announced it had reached a staff-level agreement with Ghana following a two-week mission to assess developments on the ground.

The agreement is subject to IMF Management approval and Executive Board consideration.

Once the Executive Board review is complete, Ghana will have access to SDR 267.5 million (approximately $385 million), bringing total IMF financial support under the arrangement since May 2023 to SDR 1,975.5 million (about $2,825 million).

The IMF staff report also commended Ghana’s progress in key areas, including debt restructuring, fiscal consolidation, energy sector reforms, foreign exchange operations, and financial sector resilience.

“The authorities are making progress on debt restructuring, fiscal consolidation, energy sector reforms, foreign exchange operations, and financial sector resilience,” the report noted.

Source: Joy Business  

Speaking in an interview with the IMF during the ongoing IMF/World Bank Spring Meetings in Washington DC on October 16, he said recent interventions by the Bank of Ghana were temporary measures to cushion the market during a period of heavy outflows and lumpy payments.

“Yes, there were allegations about whether we were intervening in the market,” he said. “But that was not exactly the case.”

He explained that between the second and third quarters, the central bank had to meet large financial obligations, including billions of dollars in arrears owed to Independent Power Producers (IPPs).

The period also saw some domestic debt exchange bondholders deciding to exit their investments following the appreciation of the cedi.

“There were all these large arrears in payments to some of the IPPs,” he said.

“And we also had some of the domestic debt-affected bondholders that wanted to exit. Because the currency had appreciated, they felt it was the right time to take up their investment. We had to allow them to go.”

Dr Asiama said the Bank of Ghana was compelled to make significant payments between July and August to settle those obligations, leading to perceptions that it was heavily intervening in the FX market.

“All these inflows accrue to the central bank, and it was happening at the time when we saw some decline in remittance inflows,” he explained.

“Remittance inflows are another huge source of FX injection — over six billion US dollars per year. However, immediately after the currency appreciated, we saw a decline.”

He said the combination of reduced remittance inflows and large outflows caused a temporary strain on the interbank market.

“During that time, the interbank FX market had dried up, and so the central bank needed to provide that support,” he said.

Dr Asiama, however, expressed confidence that the market had since recovered. “I’m happy to say that the interbank FX market has come back,” he said.

He disclosed that the Bank of Ghana had instructed mining companies to channel all foreign exchange inflows through commercial banks.

“We have written to the mining firms, for example, to take all their inflows through the commercial banks,” he stated. “So we are beginning to see some pickup in interbank FX market activity.”

He clarified that gold inflows remain an exception but noted that the trend points to a more vibrant, self-sustaining FX market.

“What we have now is to intermediate what comes from the Gold Board, and then the rest is taken into our reserves,” he said.

Dr. Asiama gave specific figures to show that demand on the market had normalised.

“As of yesterday, we had committed to make available 150 million US dollars,” he said.

“This morning, when I checked, the market had picked up only 90 million dollars, so 60 million automatically goes into our reserves. Same thing Tuesday — we made available 150 million dollars, and the market picked up less than half that.”

He stressed that the Bank of Ghana is not over-supporting the market. “We do not over-support the markets at all,” he said.

“All we seek to do is to limit the volatilities in the markets, to ensure that we have that smooth dynamic in the market, and that’s the framework we will maintain going forward.”

Source: Myjoyonline

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The BoG, in a statement, said it had to take the action due to the rising number of dud cheques, despite warnings issued by the central bank.

“The Bank of Ghana has observed with grave concern the high issuance of dud cheques by some customers of banks and SDIs. This development has consequential effects on the acceptance of cheques for transactions,” the BoG warned.

The central bank said a bank or SDI is now obliged to levy an account holder who issues a dud cheque for the first time 10% of the cheque’s face value and issue a Warning Notification to the affected customer on the consequences of repeating the offence.

In addition, the bank or SDI shall report the offence to the credit reference bureaus and the Bank of Ghana.

“The bank or SDI shall place the customer under surveillance for a minimum period of one year. The warning should be documented and may be in the form of a Short Message Service (SMS), an email, or any other established means of communication between the bank or SDI and that customer. The notification shall also indicate further sanctions that will be applied in the event of subsequent breaches,” the BoG said.

Where a customer issues a dud cheque for the second time within one year of the first offence, the drawee bank or SDI is required to impose a levy of 15% of the cheque’s face value and issue another Warning Notification to the customer on the consequences of repeating the offence.

The drawee bank or SDI shall report the offence to the credit reference bureaus and the Bank of Ghana.

“Where a customer issues a dud cheque on a third occasion within one year of the first offence, the drawee bank or SDI shall impose a levy of 20% of the cheque’s face value. The drawee bank or SDI shall report the offence to the credit reference bureaus and the Bank of Ghana,” it said.

According to the Bank of Ghana, it shall ban such a customer from issuing cheques within the country for a minimum period of three years.

The customer may, however, be permitted to receive cheques and funds into the affected account and perform other electronic transactions on the account. In addition, the Bank of Ghana shall ban such a customer from accessing new credit facilities from the banking system for one year and notify all banks and SDIs of the ban.

Upon receipt of the notification of the ban by the Bank of Ghana, the drawee bank or SDI shall notify the customer within five working days of the ban, recall all unused cheque books and shall not issue new cheque books to the affected customer until the sanctions are lifted. The Bank of Ghana may publish the list of the third-time offenders.

Where a customer fails to return the unused cheque books within a period of ten days from the notification date, the customer shall be reported to the Bank of Ghana.

The Bank of Ghana may ban such a customer from operating any current account. In addition, the customer shall be added to the Directory of High-Risk Cheque Issuers to be created by the Central Bank, which shall serve as a reference point for the Bank of Ghana and the banking industry.

Source: Lawrence Segbefia  

The celebration, which was initially planned for August, was suspended after the helicopter crash in the Ashanti region that claimed eight lives.

A statement issued by the central bank said as part of the activities to mark the 60th anniversary of the cedi, there will be a national launch ceremony at the Accra International Conference Centre with President John Mahama as the Special Guest of Honour.

There will also be a Cedi Van Regional Roadshow, exhibitions, education, and outreach, as well as public education campaigns on clean note handling, currency security features, and history of the currencies since independence.

In addition the Bank of Ghana will organize currency conference featuring stakeholders from central banks across the world, academia, and the private sector.

“The Cedi@60 anniversary presents a strategic opportunity to reflect on six decades of monetary sovereignty, engage the public on the history and future of the currency, and promote pride in Ghana’s financial and cultural identity.

It is also an occasion to strengthen policy literacy, promote the Bank’s Clean Note Campaign, and inspire the next generation to appreciate and protect the integrity of the cedi”, the statement said..

Background and Rationale

On July 19, 1965, Ghana officially adopted the Cedi as its national currency, symbolizing economic independence and the country’s transition from colonial rule.

Since its inception, the Cedi has undergone significant reforms, redesigns, and policy evolutions, serving as both a monetary instrument and a national emblem of resilience, self-determination, and progress.

Source: Joy Business   

With a year-to-date gain of 20%, the World Bank pointed out that the local currency was buoyed by tight fiscal and monetary policy, rising export revenue, and improved market sentiment.

During the same period in 2024, the cedi had lost about 19% to the American greenback.

The second-highest currency in Africa this year is the Zambian kwacha, with a year-to-date appreciation of 16%.

The World Bank said addressing barriers to structural transformation and prudent fiscal management will help sustain the gains in both currencies.

The weaker currencies in Africa in 2025 are the South Sudanese pound and the Ethiopian birr. They have done year-to-date reductions in value that exceed 10%.

The cedi has appreciated by 21.0% against the US dollar in nine months of 2025.

However, the local currency lost about 19% in value between late July 2025 and September 2025, after recording 40.5% appreciation as of July 2025.

According to the Bank of Ghana’s September 2025 Summary of Economic and Financial Data, the cedi traded at GH¢12.15 to one US dollar on the interbank market. However, in the retail market, the cedi is going for about GH¢13.60 to one American greenback.

Source: Joy Business

According to the July 2025 Domestic Money Banks Income Statement, the total provision was in respect of loan losses, depreciation and others.

In June 2024, the total write-off was GH¢654.2 million, about 24.2% drop from the same period on 2023.

According to the Bank of Ghana, the asset quality of the banking industry improved in the first-half of 2025.

The banking industry’s Non-Performing Loan (NPL) ratio declined to 23.1% in June 2025 from 24.2% in June 2024.

When the fully provisioned loan loss category is adjusted for, the industry’s NPL ratio decreased to 8.5% from 10.8%, reflecting decreasing stock in the sub-standard category of nonperforming loans.

The decline in the NPL ratio during the period under review is explained by the lower growth in the NPL stock relative to the growth in total loans.

Similarly, the banking industry’s NPL stock increased by 1.3% to GH¢20.7 billion in June 2025, from GH¢20.4 billion in June 2024. This represented 49.4% year-on-year growth although there was a decrease in the share of foreign currency NPL.

Private Sector NPL

The private sector accounted for the most non-performing loans, being the largest recipient of the industry’s credit.

The proportion of NPLs attributable to the private sector rose marginally to 96.4% in June 2025 from 95.6% in June 2024, while that of the public sector inched down to 3.6% from 4.4% a year earlier.

The commerce and finance sector, and the agriculture, forestry and fishing sector recorded increases in their NPL ratios while that of the manufacturing sector remained unchanged in June 2025 compared with the same reference period in 2024.

Source: Joy Business

Speaking on Joy FM’s Super Morning Show today, September 16, the Professor of Finance at the University of Ghana Business School assured that the situation is “not out of control” and urged Ghanaians not to panic.

According to him, the cedi’s rapid gains in the first half of the year had “jumped the gun” and gone “far ahead of the recovery,” making a correction inevitable.

He described the cedi’s performance in the first half of 2025 as unprecedented, noting that by the end of June the currency had appreciated by 42.6% against the US dollar, 30.3% against the British pound, and 25.6% against the euro. This was in sharp contrast to the same period in 2024, when the cedi depreciated by 18.6%, 17.9%, and 16.0% respectively.

Prof. Bokpin’s analysis comes amid a mix of positive economic indicators. Provisional data from the Ghana Statistical Service shows that the economy grew by 6.3% in the second quarter of 2025, up from 5.7% in the same period last year. He explained that growth is “broadening” across sectors but cautioned that it is still emerging from “a state of low productivity” and has yet to trigger a structural transformation.

The ICT sector was identified as the main driver of growth, expanding by a robust 21.3% in Q2.

On inflation, Prof. Bokpin pointed to a sharp decline from 23.8% in December 2024 to 11.5% in August 2025—the lowest rate since October 2021. This, he said, reflects the effectiveness of fiscal consolidation measures, with 2025 marking the eighth consecutive month of disinflation.

He further explained that the cedi’s sharp appreciation earlier in the year had encouraged speculative activity, which is now unwinding. The Bank of Ghana, he added, has been “stepping strongly” to stabilise the currency.

Prof. Bokpin concluded that the current depreciation is a natural market correction, not a sign of economic failure. He expressed confidence that the cedi will stabilise as government continues to strengthen fiscal discipline and maintain disinflation.

Source: David Apinga

In an exclusive interview on Joy FM on Monday, September 16, Prof. Bokpin urged Ghanaians to remain calm and focus on the country’s economic fundamentals, describing the Cedi’s recent volatility as a natural market phenomenon.

“We have our peak period and then we have our low period as well. In the peak period, when we experience what we call cash flow mismatch in terms of inflows and outflows… businesses import in anticipation of Christmas and all of that. So the demand will pick up,” he explained, adding that rising government spending is also likely to put pressure on the currency.

The Cedi’s performance this year has been a story of two halves. In the first half, it staged a remarkable comeback, appreciating by about 40.5% against the dollar by the end of May. This surge, its strongest in years, was driven by improved investor sentiment, a robust disinflationary trend, and a successful debt restructuring programme.

However, Prof. Bokpin cautioned that such rapid appreciation was unsustainable, noting that the currency had “jumped the gun” and raced ahead of the real economy.

He also pointed to a troubling “wide divergence” in exchange rates across the formal banking sector, forex bureaus, and the black market, warning that this gap fuels speculative activity. “The divergence is too wide,” he said, calling on the Bank of Ghana to act to ensure transparency.

Prof. Bokpin further cautioned against the national fixation on daily exchange rate movements. “I get a bit concerned because every now and then, if you look at extreme rate discussions and you do a market survey, it’s more or less dominating our economic discussions much more than anything else, and I think that is not good enough,” he stressed, urging a shift in attention to the real sector.

Despite the volatility, Ghana’s macroeconomic data offers reasons for optimism. Inflation dropped to 11.5% in August 2025—its lowest since late 2021—while GDP growth hit 6.3% in the second quarter, buoyed largely by the services sector.

These indicators, Prof. Bokpin said, suggest Ghana has “exited the peak of our crisis recovery,” with current fluctuations being part of a normal, though complex, market adjustment.

Source: David Apinga

Dr. Asiama made the disclosure while opening the 126th Monetary Policy Committee meeting on Monday, September 15, 2025. He also noted that despite seasonal pressures on the cedi and a moderation in remittance inflows in recent weeks, the country’s International Gross Reserves stood at $10.7 billion in August, covering roughly 4½ months of imports.

On the cedi, he stated that the local currency remains among the strongest globally year-to-date, appreciating by about 21% as of September 12. “It now ranks alongside high performers such as the Russian ruble, Swedish krona, Norwegian krone, Swiss franc, Euro, and British pound. This outperformance reflects prudent monetary policy, effective liquidity management, fiscal consolidation, and increased foreign-exchange inflows,” he added.

Banking Sector Development
Dr. Asiama assured that the banking sector remains stable and improving, with the capital adequacy ratio (without reliefs) rising to 19.5% in July 2025. While non-performing loans (NPLs) remain elevated at 21.7%, they drop to 8.4% when fully provisioned losses are excluded, highlighting resilience amid ongoing recapitalisation and strict underwriting.

On fiscal performance, he noted: “Execution in the first half of 2025 signalled consolidation: the deficit on a commitment basis was contained at 0.7% of GDP, below target, contributing, together with cedi strength and external restructuring, to a decline in the public debt ratio by mid-year.”

Regarding monetary policy, Dr. Asiama said the committee is ready to adjust rates as the disinflation process continues and risks, including global trade disruptions or prospective utility tariff adjustments, are assessed. He added that the tight monetary stance and fiscal consolidation helped headline inflation fall to 11.5% in August 2025.

Source: Joy Business

According to JoyBusiness sources, the full amount will not be released at once but disbursed in tranches, with a significant portion expected before the end of the year. The arrangement is designed to secure COCOBOD’s commitment to meet bean supply obligations.

COCOBOD’s New Financing Model

In 2023, COCOBOD rolled out a new funding model for cocoa purchases, which requires international buyers to deposit at least 60% of the value of their forward contracts at the beginning of the season.

This model replaced the three-decade-old pre-export syndicated loan facility from international banks. Under the new arrangement, part of the traders’ deposits is channeled through licensed cocoa buying companies (LBCs), which are financed by the traders to purchase beans, with COCOBOD serving as the intermediary.

Boost For The Cedi

Analysts believe the cedi will be among the biggest beneficiaries of the inflows, as they are expected to significantly improve the Bank of Ghana’s international reserves.

As of July, the Bank of Ghana reported reserves of $11.1 billion in its Economic and Financial Data.

Speaking to JoyBusiness’s George Wiafe, Governor of the Bank of Ghana, Dr. Johnson Asiama, said the inflows should reassure the market of the central bank’s capacity to intervene when necessary to meet the demands of businesses and commercial banks.

“This development demonstrates a favourable outlook for the cedi despite recent pressures. As regulator, we have taken the needed actions to ensure that things do not get out of hand,” Dr. Asiama stated.

He stressed that Ghana’s macroeconomic fundamentals remain solid and should boost business confidence in the cedi’s stability and the ongoing measures to strengthen market liquidity.

JoyBusiness has also gathered that Ghana could receive additional inflows from development partners, which would further consolidate the country’s external reserves.

Source: JoyBusiness

Concerns have been raised that the country could return to unsustainable spending once the IMF programme ends. But government sources told Joy Business that such fears are unfounded, insisting Ghana’s current performance under the arrangement demonstrates a strong commitment to prudence.

To boost investor confidence, officials say government is considering subscribing to one of the IMF’s policy instruments — not a full programme — as a signal of stability to assure markets that fiscal discipline will hold.

This comes amid arguments by some donors that Ghana’s macroeconomic recovery has been driven largely by IMF oversight. A government official, however, rejected this, stressing that the fiscal checks are the result of deliberate policy choices, not merely IMF enforcement.

Still, market watchers remain cautious. Ratings agencies are said to be factoring in the risk of post-IMF slippages in their upcoming assessments of Ghana’s creditworthiness. Analysts warn that sustaining discipline beyond May 2026 will be one of government’s biggest challenges, especially after President John Mahama announced that the programme will not be extended.

Meanwhile, an IMF staff mission is expected in Accra at the end of September 2025 for the fifth review of Ghana’s programme. This penultimate review — following the fourth assessment earlier this year — will evaluate economic data up to June 2025. The final review is scheduled for April 2026.

According to Joy Business sources, the review will focus on key indicators, including inflation, reserve sustainability, revenue shortfalls, arrears audits, and challenges facing state-owned and private banks in need of recapitalisation. Particular attention will also be given to arrears in statutory funds such as the NHIL, GETFund, and Road Fund, as well as gaps in social spending.

The $3 billion IMF programme, approved in May 2023 under a 36-month Extended Credit Facility (ECF), has been critical in stabilising Ghana’s finances. Its priorities include restoring public finances through improved revenue mobilisation and spending efficiency, expanding social protection, implementing structural tax and financial reforms, addressing energy and cocoa sector weaknesses, and tightening monetary policy to control inflation.

While donors continue to urge Ghana to build “shock absorbers” to maintain stability after IMF support ends, government insists its commitment to discipline is genuine and long-term.

Source: Joy Business

The Bloomberg published a story titled “Ghana Cedi’s World-Beating Performance Upended by Imports Surge”. The story indicated that the Ghanaian currency, which had recently been performing well against the dollar, is now recording losses.

This, according to the story, was because of a surge in demand for dollars by companies paying for imports.

However, checks by Fact-check Ghana from Bloomberg indicate that the Ghana cedi is not the worst-performing currency in the world now.

According to Bloomberg, the year-to-date gains of the Ghana cedi, which was in June this year around 50% against the dollar, have indeed been reducing. The cedis’ gains waned through July and August.

Currently, according to Bloomberg’s currency ranker, the Ghana cedi has a net gain of 21.99% against the dollar. At 21.99%, the cedi is the second-best-performing currency in the world, after the Russian ruble.

Which currency is the worst-performing currency?

The worst-performing currency, according to Bloomberg’s currency ranker, is the Argentine Peso, which has a net loss of 24.33 against the dollar since January 2025. The Turkish lira and Ethiopian Birr follow with net losses of 14.11% and 10.66%, respectively.

The Ghana cedi is therefore not among the list of worst-performing currencies.

Fact-check Ghana has observed that Graphic Online edited its initial headline of the Ghana cedi being the world’s worst-performing currency to the worst-performing currency in the third quarter.

The Ghana cedi has indeed lost about 13% of its gains to the dollar, which is relatively the highest loss since July.

While it is true to say the cedi has relatively lost considerable value within the period of consideration, the currency is still among the highest-performing currencies at a net gain of 21.99% and cannot be counted among the worst-performing currencies in the world currently.

In conclusion, claims that the Ghana cedi is the worst-performing currency in the world now are completely false.

Source: FactcheckGhana

He stressed that the era when businesses could demand to walk away with as much as $10 million over the counter has ended.

“Imagine a corporation wanting to withdraw $10 million over the counter. What do they use that for? Their payments are abroad, and they don’t carry physical cash to settle anything,” Dr. Asiama explained.

According to him, companies earning money through export rights into their foreign currency accounts must channel payments abroad electronically, rather than cashing out locally.

The Governor clarified that the directive is not aimed at individuals who may need smaller amounts of foreign currency for personal use.

“For individuals like you and me, probably you need a few $100 or $200 to do something, that’s understandable. You can negotiate with your bank,” he said.

Responding to claims that the central bank was being too rigid, Dr. Asiama dismissed the criticism, noting that the measures are meant to protect the market and curb illegal cash movements.

He revealed that intelligence reports showed some people had been carrying huge sums of dollars out of the country without declaring them.

“Some people are carrying over a million dollars just out of Ghana, without declaring them. Those are leakages, and as a regulator, we must work with other agencies to ensure such sums are accounted for. That also supports the fight against money laundering,” he said.

Dr. Asiama emphasised that the directives were the result of consultations with banks, adding that financial institutions had been engaged extensively before the notices were issued.

“We are just redefining the framework within which the market has to work efficiently. These are things we should have been enforcing earlier, but now we are making the rules clearer,” he added.

Source: MyJoyOnline

Dr. Asiama gave the assurance when he received the leadership of the Importers and Exporters Association of Ghana (IEAG), led by its Executive Secretary, Samson Awingobit Asaki, during a courtesy call at the Bank of Ghana’s Head Office.

Governor of the Bank of Ghana, Dr. Johnson Asiama, addressing the delegation
The delegation, which was welcomed by the Second Deputy Governor, Matilda Asante-Asiedu, commended the Bank for its strong leadership in stabilizing the cedi and improving the macroeconomic outlook.

Executive Secretary of the IEAG, Samson Awingobit, praised the Bank’s policies under Dr. Asiama’s leadership and called for further support to address outstanding concerns that require the Central Bank’s intervention.

Source: Joy Business

According to the World Bank Group’s 9th Economic Update on Ghana, this trend marks a positive shift after the disinflationary process stalled in 2024.

The report notes that headline inflation has been on a continuous decline since December 2024, reaching 13.7 percent in June 2025.

This six-month-long reduction reflects a broad-based easing of price pressures across core, food, and non-food categories.

“The decline was influenced by a tighter monetary policy rate of 28 percent, improved macroeconomic conditions, and a significant rebound of the currency,” the report states.

A key factor in this progress has been the strong performance of the Ghanaian cedi, which appreciated against all major currencies in the year to June 2025 — a dramatic turnaround from its struggles in previous years.

The cedi’s appreciation was supported by a combination of tight monetary policy, ongoing fiscal consolidation, and interventions by the Bank of Ghana (BoG) in the foreign exchange (FX) market, the report added.

The World Bank also acknowledged the crucial role of the BoG’s interventions in managing liquidity and supporting the currency.

However, it cautioned that such interventions “should be managed carefully to avoid distortions in the currency market and allow for a more flexible exchange rate regime.”

This advice underscores the need to strike a balance between maintaining stability and ensuring market efficiency.

The strong disinflationary trend and the rebound of the cedi are seen as positive indicators that Ghana’s stabilization and recovery reforms are taking hold.

This is giving the Mahama administration confidence to pursue its ambitious reform agenda aimed at restoring growth and achieving long-term fiscal sustainability.

Source: Myjoyonline

Dr. Asiama noted that one of the key questions that should be under consideration is whether “current macroeconomic configuration permits a recalibration of the policy stance”.

He reminded members of the committee that their decisions should be guided by the fact that inflation expectation is more firmly anchored, external buffers strengthened, and confidence maintained.

The Governor made the statements in his opening remarks at the Monetary Policy Committee meeting at the Bank of Ghana Head office in Accra today, July 28, 2025.

Dr. Asiama urged all the members to sharpen their focus on “forward-looking risks, policy trade-offs, and credible guidance to markets”.

“Our mandate requires a balanced decision that reinforces stability while enabling sustainable growth”, he emphasized.

Challenges and concerns ahead

Dr. Asiama cautioned that there are some glaring challenges that should not elude the committee in in its analysis and consideration to arrive at a new policy rate decision.

He cited for instance, the 2025 Budget which reflects the firmer commitment to fiscal consolidation, the overhang from the 7.9 percent fiscal deficit in 2024 which still persists.

“Liquidity conditions are still tight, and we must remain attentive to the pace and breadth of policy transmission, particularly to credit channels and the productive sectors”, he pointed out.

Favourable Economic Data

Despite all the concerns, Dr. Asiama noted that domestically, signs of recovery have become more pronounced.

“Real GDP expanded by 5.3 percent in the first quarter, driven by strong growth in agriculture and services, while non-oil GDP rose by 6.8 percent”, he revealed.

“Another development that we should note or be guided by is the fact that the Bank’s Composite Index of Economic Activity increased by 4.4 percent year-on-year in May, and the latest PMI readings point to rising business and consumer confidence”, he said.

“Private sector credit growth has also improved, reaching 19.9 percent in April, up from 10.8 percent a year earlier, with the contraction in real credit narrowing substantially”, he added.

Dr. Asiama also revealed that Ghana’s external position remains robust recording “provisional trade surplus of US$5.6 billion in the first half of 2025, supported by strong gold and cocoa export receipts”.

He stated that the current account surplus has widened to US$3.4 billion over the same period.

The development the Governor maintained that has helped improved investor sentiment, bolstered by Ghana’s IMF-supported programme and better credit ratings, has further strengthened foreign exchange inflows.

Global Concerns

On external issues, the Governor painted some mixed sentiments, warning that the environment remains uncertain.

“Growth momentum is weakening, with global growth projected to slow to 2.8 percent in 2025, down from 3.3 percent in 2024”.

Dr. Asiama said financial conditions remain tight amid elevated interest rates, and disinflation, though ongoing, is expected to proceed unevenly.

“Oil prices have stabilized at around US$69.8 per barrel but lingering geopolitical risks and trade tensions continue to cloud the outlook”, he revealed.

Speaking on JoyNews’ PM Express on Thursday, July 22, shortly after presenting the 2025 Mid-Year Fiscal Policy Review to Parliament, Dr. Forson questioned the very foundation of the debt overhaul he inherited.

“First of all, the debt restructuring for me was not well structured. It was very badly structured,” he told host Evans Mensah. “I say so in the sense that, you would ask, why do you restructure your debt and create such a hump?”

He implied that the restructuring’s design raised concerns about the motives behind it.

“Are you setting someone up to fail? No one restructures a debt like this. Because restructuring a debt by creating this kind of humps can be cancerous.”

According to the Finance Minister, such an approach could have severe consequences for the country’s economic stability.

“It can set the country back to another economic disaster like we saw in 2022.”

Dr. Forson dismissed the idea that the debt restructuring gave his administration any fiscal relief.

“So the debt restructuring that they [NPP] did, I can’t give them credit,” he declared.

He also criticised the aspect of the restructuring that affected pensioners.

“You do a debt restructuring to the extent that you deny pensioners of their savings and their dignity—[that] cannot be said to be a good debt restructuring.”

Blaming the crisis on excessive borrowing, he said, “Why is it that government should have gone into debt restructuring when it was avoidable in the first place? It is because the Akufo-Addo government borrowed and borrowed until Ghana could not pay its debt.”

He concluded by painting a grim picture of the consequences.

“They borrowed and borrowed until the needs of the citizens and then the needs of the creditors collided. That is not the kind of governance we want to do for you.”

Source: Abubakar Ibrahim

Presenting the 2025 Mid-Year Budget Review, Dr Forson explained that the funds were used by the previous government to cover critical expenditures. As a result, no arrears were passed on to the current administration.

“It is important to note that there was no build-up in arrears payable during the period under review, signaling strong commitment control and fiscal discipline,” he said.

He further noted that Ghana’s fiscal deficit for the first half of the year was mainly financed from domestic sources, with net domestic financing recorded at GH₵13.1 billion—significantly below the GH₵18.7 billion target.

Net foreign financing stood at GH₵2.8 billion, primarily from the use of the GH₵4.5 billion IMF disbursement.

Despite the early-year spending and ongoing economic challenges, Dr Forson assured that Ghana remains on track with the implementation of the IMF-supported programme.

He added that the country has borrowed less than initially projected, which he described as evidence of prudent fiscal management and strong expenditure control.

The Finance Minister stressed that the current government differs significantly from the previous NPP administration, particularly in its fiscal discipline and approach to managing the economy.

He assured that efforts are ongoing to stabilise the economy while maintaining transparency in fiscal operations.

Between January 1st and 6th, the IMF disbursement of 4.5 billion was spent, six days before the Mahama administration took office — Cassiel Ato Forson, Minister for Finance #MidYearBudgetReview pic.twitter.com/jGf2gt5VgZ

— Joy Prime (@JoyPrimeTV) July 24, 2025

]]> https://www.adomonline.com/mid-year-budget-govt-bans-award-of-contracts-in-foreign-currency/ Thu, 24 Jul 2025 16:02:55 +0000 https://www.adomonline.com/?p=2559333

Sources familiar with Ghana’s ongoing programme with the IMF say the government has met almost all the necessary conditions for the Executive Board to proceed with its review.

All required documentation has reportedly been submitted this week, enabling the Board to meet the minimum four-day review window before the scheduled meeting on Monday, July 7.

The review follows a staff-level agreement reached in April 2025 on the fourth assessment of Ghana’s economic programme under the Extended Credit Facility (ECF).

Impact On Ghana’s Economy

According to sources, the IMF Board is expected to approve the fourth review, paving the way for the disbursement of US$370 million, which could reflect in the Bank of Ghana’s account by July 11, 2025.

If disbursed, this amount will bring total IMF disbursements to Ghana under the ECF programme—signed in May 2023—to more than US$2.3 billion.

Some analysts say the inflows will likely boost Ghana’s international reserves by the end of July. The country also expects an additional $360 million from the World Bank within the same period to support economic recovery.

IMF Programme Targets

Ghana’s economic programme under the IMF’s ECF arrangement aims to:

• Restore macroeconomic stability

• Ensure debt sustainability

• Lay the foundation for higher and more inclusive growth

A key target of the programme is to reduce Ghana’s debt-to-GDP ratio to 55% by 2028.

However, recent data from the Bank of Ghana indicates that this goal has already been achieved. As of April 2025, the country’s debt-to-GDP ratio had declined to 55%, aided largely by the cedi’s sharp appreciation against the US dollar.

Commercial bank data shows that the cedi has appreciated by over 40% since the beginning of 2025.

President John Mahama, speaking at a recent engagement with the African Development Bank in Ivory Coast, disclosed that the cedi’s gains had led to a ₵150 billion reduction in Ghana’s total debt stock.

Another key target Ghana has met is foreign reserves. According to the Bank of Ghana’s May Economic Report, the country’s international reserves stood at $10.6 billion as of the end of April 2025. This represents 4.7 months of import cover, a significant improvement compared to previous post-programme levels.

The Treasury aimed to raise GH¢4.551 billion but secured only GH¢3.379 billion. Of this, it accepted GH¢2.952 billion.

Analysts say investor preference has shifted towards Bank of Ghana bills, which offer a 27% yield—well above the inflation rate of 18.4%.

The 91-day bill attracted the highest interest, with bids totalling GH¢2.418 billion (71.55% of total bids). The government accepted GH¢2.191 billion.

For the 182-day bill, bids stood at GH¢716.29 million, with GH¢603.74 million accepted.

The 364-day bill saw GH¢236 million in bids, out of which GH¢157.76 million was accepted.

Meanwhile, interest rates on the yield curve dipped slightly:

• 91-day bill: 14.69% (down 1 basis point)

• 182-day bill: unchanged at 15.25%

• 364-day bill: dropped to 15.69% from 15.74%

The rating agency said any renewed liquidity pressures could undermine Ghana’s ability to meet debt obligations. These pressures could arise from weaker fiscal consolidation or the materialisation of contingent liabilities.

Another potential trigger for a downgrade is declining market confidence in Ghana’s ability to refinance short- to medium-term debt, particularly if the local-currency bond market remains closed or inaccessible.

Fitch also flagged external liquidity risks such as a drop in international reserves, possibly due to persistent current account deficits.

On the flip side, Fitch noted that Ghana could see further positive rating action if there is a sustained decline in debt-to-GDP levels, backed by strong implementation of a credible, medium-term fiscal consolidation strategy.

Additionally, a steady build-up in international reserves—bringing them closer to the median level for countries rated ‘B’—would support macroeconomic stability and improve investor confidence in Ghana’s ability to service its debt.

Country Ceiling

Fitch maintained Ghana’s Country Ceiling at ‘B-’, in line with the sovereign IDR. It said there are no significant constraints that would prevent the private sector from converting local currency into foreign currency or transferring funds abroad to meet debt payments.

Environmental, Social and Governance (ESG) Considerations

Fitch gave Ghana an ESG Relevance Score of ‘5’ for Political Stability and Rights, indicating governance weaknesses that weigh negatively on the credit profile.

Ghana also received a score of ‘4’ for Creditor Rights. Fitch stated that the country’s willingness and ability to honour its debt obligations remain important rating considerations, as with all sovereign issuers.

The central bank believes this move will help curb the hoarding of foreign currencies, particularly the dollar, and discourage speculative activities.

Addressing members of the Association of Ghana Industries (AGI), the Governor of the Bank of Ghana, Dr. Johnson Asiama, stressed the need for a renewed mindset regarding the cedi. He called on businesses to support the BoG in efforts to close loopholes in the remittances sector.

“Our objective is to ensure that every dollar that is remitted is made to count,” he stated.

Dr. Asiama disclosed that the BoG will soon roll out several measures to sanitise and monitor the remittances sector to ensure proper accounting of foreign currency inflows.

“I wouldn’t go into details about the platforms we intend to put in place, but our objective is to ensure that every dollar that is remitted is properly channelled into the economy,” he added.

On efforts to boost Ghana’s gold reserves, Dr. Asiama described the GoldBod initiative as a strategic step that will continue to shield the cedi from external shocks.

“I’m beginning to see those two things play out,” he said, referring to reforms in the remittances space and the establishment of GoldBod.

He reiterated that the BoG’s drive to stabilise the cedi is expected to positively impact the economy by reducing inflation and fostering growth. By addressing leakages in the gold and remittances sectors, the central bank aims to ease pressure on the cedi and promote stability in the foreign exchange market.

Dr. Asiama affirmed the BoG’s commitment to ensuring the cedi remains stable and competitive, supporting both businesses and individuals.

Concerns Over Remittances

In 2024, banking consultant Dr. Richmond Akwasi Atuahene raised concerns about fintech companies operating in Ghana’s remittance sector, calling for stricter oversight.

He pointed to discrepancies in reported figures and their potential impact on Ghana’s foreign exchange reserves.

Dr. Atuahene urged the BoG to commission international audit firms to conduct forensic audits on all fintech companies, retroactive to 2019. He also suggested that the Ministry of Finance and the BoG ensure fintech firms reimburse BoG Nostro accounts or authorised dealer banks with all foreign exchange components derived from international remittances.

“Foreign exchange from inward remittances can help reduce the current account deficit and stabilise the local currency against major trading currencies,” he noted.

To strengthen oversight, he proposed that BoG acquire digital tools to monitor all inward remittances. “The Bank of Ghana must acquire software that can be linked with the fintech companies’ digital apps to track, trace, and capture all inward remittances,” he said, proposing a middleware platform using APIs and Ethernet-APL technology.

These recommendations come amid growing concerns about discrepancies between World Bank remittance data and figures from authorised dealer banks in Ghana.

“The central bank has consistently failed to address the gap between World Bank data on inward remittances and that of the 23 authorised dealer banks for the period between 2019 and 2023,” Dr. Atuahene said.

Citing the BoG’s 2023 Annual Report, he questioned the fate of significant remittance inflows: “The Governor reported that fintech companies received GH¢22 billion (US$3 billion) in 2022 and GH¢57 billion (US$5 billion) in 2023. Where were these foreign exchanges held?”

While the BoG has denied claims of losing US$8 billion through inward remittances, it acknowledged a shortfall, indicating that newly licensed money transfer operators (MTOs) and fintech companies have withheld approximately US$8 billion over the past two years.

Dr. Atuahene also called for enhancements to the international remittance data framework, urging both the BoG and the International Monetary Fund (IMF) to improve their BPM6 and RCG frameworks to better reflect the evolving nature of the remittance sector.

Delivering remarks at the Post-Monetary Policy Committee (MPC) meeting with CEOs of banks, BoG Governor Dr. Johnson P. Asiama emphasized that the Bank’s approach to supervision will maintain continuity but deepen in scope, with greater emphasis on early warning systems and direct board-level engagement.

“We expect deeper accountability and a stronger risk culture across institutions — not just compliance,” Dr. Asiama stated.

Crypto Regulation on the Horizon

The Governor disclosed that the BoG, in collaboration with the Securities and Exchange Commission (SEC) and other relevant stakeholders, is finalizing a comprehensive regulatory framework for cryptocurrencies and digital assets.

“This will bring clarity, mitigate risks, and support responsible innovation in line with global standards,” Dr. Asiama noted, signaling a proactive stance on a rapidly growing financial sector trend.

He urged financial institutions to begin preparing immediately for the incoming regulatory framework by:

• Strengthening AML/CFT and KYC protocols for clients dealing in digital assets;

• Investing in secure IT infrastructure and cyber defenses;

• Participating in the BoG’s regulatory sandbox for crypto-related pilots;

• Educating clients on crypto risks and compliance obligations;

• Assessing institutional exposure and internal readiness for crypto activities.

“This is no longer a theoretical issue. The market is evolving. Regulation is coming. And financial institutions must be ready,” the Governor stressed.

As part of its evolving supervisory framework, the BoG plans to enhance forward-looking supervision, ensuring risk detection and regulatory intervention happen earlier and more effectively.

This includes more direct interaction with bank boards and a culture shift from tick-box compliance to active risk management.

Amidst discussions envisioning this new body as a cornerstone for long-term fiscal discipline, prominent legal practitioner Professor Stephen Kwaku Asare (popularly known as Kwaku Azar) has vehemently shot down the idea, branding it as an unnecessary, costly, and counterproductive duplication of existing state functions.

Writing from his base in the United States, Prof. Asare, a distinguished professor of accounting, argued forcefully in a social media post on Sunday, June 1, that the impetus for new oversight bodies like a Fiscal Council reflects a persistent flaw in Ghana’s governance philosophy: an ingrained “institutional fetish” for creating new structures rather than fortifying established ones.

He estimates that setting up such a council, complete with a board of 7-9 members, a secretariat, salaries, logistics, and office infrastructure, could drain the national coffers by an estimated GH₵15-20 million annually.

“We have a penchant for creating new institutions for old problems,” Prof. Asare observed. “This approach duplicates existing mandates, muddies responsibility and accountability, and risks becoming tools of patronage masked as technocratic solutions.”

He asserted that the critical functions envisioned for a Fiscal Council – including fiscal compliance, forecasting, and policy oversight – are already embedded within the mandates of existing institutions.

He pointed to the Auditor-General’s Department, tasked with ensuring financial transparency and adherence to regulations; the Ministry of Finance, responsible for macroeconomic forecasting and policy design; and parliamentary committees, which exercise oversight and scrutiny over government spending and fiscal policy.

Instead of enhancing coordination and fiscal discipline, Prof. Asare warned that the introduction of a new council could inadvertently delay decision-making processes and inflate the overall cost of governance without delivering any tangible improvements in fiscal outcomes.

As a more efficient and impactful alternative, Kwaku Azar advocated for a strategic investment in augmenting the analytical and forecasting capacities of current institutions, particularly the Auditor-General’s Department and the Budget Office.

He suggested that a “modest investment” – perhaps a 15-20% increase in their current operational budgets, specifically earmarked for acquiring advanced fiscal modelling software and training a dedicated team of 20-30 economic and financial analysts – could empower these existing bodies to fully absorb the proposed functions of a Fiscal Council, legally, operationally, and independently.

“We must resist the impulse to solve every reform challenge by creating a new committee,” he cautioned. “Creating new structures while neglecting existing ones reflects a misplaced confidence in form over function.”

Prof. Asare maintained that while the concept of an Independent Fiscal Council might be well-intentioned, its implementation in the Ghanaian context would ultimately prove redundant.

He firmly believes it should be shelved in favour of a concentrated effort to bolster the technical capabilities and independence of Ghana’s already established fiscal oversight bodies, thereby ensuring more effective and sustainable fiscal management.

ALSO READ:

• Fiscal discipline, not austerity – Economist explains cedi’s turnaround

• Ghana risks fiscal crisis if IMF programme ends in 2026 – Bokpin

Speaking on Joy News’ PM Express Business Edition on Thursday, May 29, Awuah described a worrying trend of currency manipulation, which he said accounted for as much as 30 percent of the cedi’s past declines.

“I once stated with no proper research behind it that I could clearly read that the extent of speculation in the currency movement was between 20 and 30%,” he said.

“So if there was a depreciation, about 20 to 30% of that depreciation is not backed by any effective transaction, but by people who are just playing on the currency for temporary price adjustments to profit from the currency movement.”

According to Mr. Awuah, these speculative players were not responding to trade imbalances or macroeconomic shocks; they were simply gaming the market for short-term gains.

“If the currency is able to hold its own, what you are doing is making that trade [speculation] unattractive,” he said.

“Now, the cedi is more attractive. So the people who are holding cedi, they are looking for cedi investments, because the currency is not depreciating as aggressively as we are used to in the past.”

He was quick to caution, however, that appreciation should not be mistaken for stability. For businesses, what matters is not necessarily a stronger cedi, but a stable and predictable one.

“We should not be too excited about significant appreciation,” he warned. “That is not exactly what the business community is looking for.”

He explained that wild swings in the currency’s value—whether positive or negative—make it impossible for businesses to plan effectively.

“The business community is looking at predictability. Not that the currency has depreciated to ¢5 to the dollar, and tomorrow it is ¢10. Another time it is ¢9.”

Inconsistent currency movements, he added, hurt forecasting, banking, and investment decisions.

“You need to plan effectively. You need some variables to hold their own and not be oscillating significantly beyond levels that you are unable to predict and have a proper forecast,” Mr. Awuah explained.

“Even if you are talking to your banks, your ability to project your revenue generation is hampered if a component of your revenue is foreign currency-based.”

While Awuah expressed some confidence in the current performance of the cedi, he avoided making bold projections.

“I don’t want to say a wait and see, because I don’t have any reason to doubt the ability of the currency to hold its own. Coming down to single digits, I am not sure,” he said.

Source: Abubakar Ibrahim

According to APL, while the cedi has appreciated significantly in the first half of 2025, this has largely been driven by temporary measures.

It mentioned heavy forex market interventions by the Bank of Ghana (nearly $1 billion between January and May 2025) and tough fiscal decisions such as freezing government spending and suspending payment of arrears as factors that have significantly contributed to these gains.

“These gains, while encouraging, are built on temporary pillars that require deeper reforms to become sustainable,” APL noted.

APL points out that Ghana has seen similar periods of stability before, particularly between 2017 and 2019 during the IMF Extended Credit Facility program.

During that time, the cedi was relatively stable due to improved fundamentals, disciplined fiscal policy, and external conditions such as rising oil production and commodity prices.

APL suggests that today’s policymakers can learn from that period by focusing on long-term reforms instead of relying on interventions.

“There are lessons from the past—particularly the 2017–2019 period—that show sustainable stability must be anchored in strong fundamentals, not ad hoc measures,” the organisation stated.

In a press release issued on Tuesday, May 27, 2025, it highlights potential risks if current strategies continue without adjustment while warning that the over-reliance on gold-backed interventions and deferred obligations could backfire, especially if commodity prices fall or external financing becomes more difficult.

“Over-reliance on short-term tools such as gold-backed forex support and deferred government obligations could leave the economy vulnerable to external shocks,” APL warned.

It indicated that analysts such as S&P Global Ratings and Fitch Solutions have already warned that the cedi could face renewed depreciation in the second half of 2025 if structural imbalances resurface.

“Global credit watchers are already flagging risks, and Ghana must act swiftly to insulate itself from renewed pressures,” APL emphasized.

APL calls for stronger policy action, including the completion of debt restructuring, diversification of export revenue sources, and improved fiscal management.

It also emphasizes the importance of transparent communication from government institutions to maintain investor confidence.

“To maintain the current momentum, reforms must be bold, and communication must be clear to avoid spooking markets,” the group stated.

In conclusion, APL states that while Ghana’s currency has shown impressive recovery, “the challenge now is to ensure these gains are not only preserved but built upon,” reiterating that “without long-term reforms, the current stability may not hold.”

According to APL, the cedi has appreciated by over 20% against the US dollar so far this year, making it one of the best-performing currencies globally.

As of mid-May 2025, the cedi is trading at approximately GH¢13.5 to the dollar, reflecting a 17% gain since January.

APL attributes this recovery to a combination of factors, including the government’s fiscal consolidation measures like a sharp reduction in public spending, suspension of new projects, and a freeze on the clearance of arrears, which have helped reduce pressure on the currency.

“The Ministry of Finance is reported to have held back payments worth about GH¢69 billion pending audit,” APL stated, “effectively curbing excess demand for foreign exchange.”

At the same time, the Bank of Ghana (BoG) has played a central role through strategic interventions.

Through the Domestic Gold Purchase Programme (DGPP), the BoG accumulated gold reserves that were later used to support the cedi via gold-backed foreign exchange operations.

Between January and May 2025, the central bank injected nearly $1 billion into the forex market.

“This included $490 million in April alone and $264 million in March,” APL noted, “which helped improve dollar liquidity and ease depreciation pressure.”

In a press statement issued on Tuesday, May 27, 2025, APL notes that while these interventions have brought short-term stability, their sustainability remains uncertain.

“Drawing down reserves and delaying payments are not long-term solutions,” the think tank stressed.

APL also acknowledges the influence of external factors such as the weakening of the US dollar amid global trade tensions, which have contributed to the cedi’s recent gains.

Despite the progress, APL warns that short-term gains should not lead to complacency.

The group emphasizes the need for continued reforms, urging the government to build on current momentum with permanent policy measures aimed at fiscal discipline, export diversification, and institutional transparency.

“Short-term gains should not lull policymakers into inaction,” APL cautioned. “Sustainable growth depends on deep, structural reforms.”

This was the key message from Mr Osei Gyasi of the Bank of Ghana’s Governance Department, who delivered an address at the inaugural Daily Graphic/Ecobank Ghana Economic Forum held in Accra today (May 28, 2025).

Speaking on behalf of the central bank, Mr Gyasi said the economy was gradually rebounding from years of cyclical crises and structural vulnerabilities, bolstered by tight monetary policy, improved external sector performance, and ongoing reforms under the International Monetary Fund (IMF) programme.

He praised the organisers for creating a platform for open and candid discussion on the economy and challenged participants to use the forum as a springboard for co-creating a roadmap towards economic renewal.

Mr Gyasi noted that signs of recovery have become more pronounced in 2025, with the cedi appreciating and reversing a 19.2 per cent depreciation recorded in 2024. Inflation, he said, had moderated significantly from 23.8 per cent in December 2024 to 21.2 per cent in April 2025, aided by currency stability, tight monetary policy, and improved supply-side conditions.

He cited marked improvement in the external sector, with a strong current account surplus in the first quarter of 2025, driven by gold and cocoa exports.

Ghana’s gross international reserves reached $10 billion at the end of April—an all-time high—equivalent to 4.7 months of import cover. The country also posted a real GDP growth of 5.7 per cent in 2024, exceeding expectations, and is projected to grow by four per cent in 2025. These developments, Mr Gyasi said, have led to renewed investor confidence, culminating in an upgrade of Ghana’s credit rating by S&P from ‘selective default’ to ‘CCC+’.

However, Mr Gyasi cautioned that the progress made remains fragile. He said fiscal pressures, currency volatility, and the global economic environment still pose significant risks. He stressed the need for close policy coordination between monetary and fiscal authorities, noting that a single misstep could reverse the hard-won gains.

On monetary policy, he disclosed that the Bank of Ghana’s Monetary Policy Committee had unanimously voted to maintain the policy rate at 28 per cent during its May 2025 meeting.

This, he explained, was a deliberate decision aimed at consolidating the gains made in bringing down inflation. He also announced a structural reform to the cash reserve ratio framework, requiring banks to hold reserves in the currency of their respective deposits—a move designed to enhance liquidity management and the effectiveness of monetary policy transmission.

Mr Gyasi acknowledged ongoing concerns in the banking sector, particularly relating to asset quality. He said the non-performing loan ratio stood at 23.6 per cent but dropped to 9 per cent when adjusted for provisions, indicating that banks are actively working to clean up their loan books. The banking system, he stressed, remains strong and well-capitalised, with a capital adequacy ratio of 15.8 per cent as of April 2025, well above the regulatory minimum of 10 per cent.

Looking ahead, Mr Gyasi argued that macroeconomic stability, while necessary, is not sufficient to reset Ghana’s economy. He called for a broader growth model that goes beyond reliance on gold and cocoa, urging greater investment in value addition, diversification, and strategic sectors such as agro-processing, light manufacturing, logistics, tourism, education, and health.

He said these sectors have high potential for job creation, export expansion, and innovation, but require targeted policy support and infrastructure investment.

He further highlighted the importance of tackling structural challenges such as limited domestic revenue mobilisation, weak public financial management systems, and governance gaps. According to him, Ghana’s economic transformation will depend not only on sound policy tools but also on policy consistency, institutional reform, and commitment to transparency and the rule of law.

In his concluding remarks, Mr Gyasi acknowledged that the road ahead would be difficult but stressed that with courage, integrity, and collective effort, the goal of building a stable, sovereign, and globally competitive Ghana was within reach.

He reaffirmed the Bank of Ghana’s commitment to prudent policy implementation and encouraged participants to ensure that the forum becomes a true catalyst for national economic renewal.

The forum, held at the Ecobank Head Office under the theme “A Broad Review of the Economy of Ghana: Then, Now, and the Way Forward,” also featured remarks from Presidential Advisor on the Economy, Seth Terkper, and PwC Ghana’s Tax Partner, Abeku Gyan-Quansah. Participants explored issues of monetary policy, taxation, and fiscal discipline, with a focus on repositioning Ghana’s economy for long-term growth.

Source: Graphic Online

According to the UK-based firm, the central bank will cut its policy rate by 200 basis points to 26.00% by the end of 2025, and follow with a further 300 basis points reduction to 23.00% in 2026.

“Inflation easing gradually, supported by exchange rate stability and lower energy prices, we forecast a cumulative 200bps [basis points] reduction in the policy rate to 26.00% by end-2025, followed by a further 300bps cut to 23.00% in 2026,” it noted in its latest report.

In March 2025, the BoG surprised markets with a 100 basis points hike in the policy rate, bringing it to 28.00%. It marked the first Monetary Policy Committee (MPC) meeting under new Governor Johnson Asiama, who has taken a more hawkish stance than his predecessor, Dr. Ernest Addison.

The MPC, at the time, stressed the need for inflation to become “firmly anchored” before any consideration of rate cuts.

Policy Rate To Remain Steady For Now – Databank Research

Meanwhile, Databank Research has projected that the BoG will likely maintain the policy rate at 28% in the short term, with any potential cut depending on continued progress in reducing inflation.

The investment firm noted that the MPC is expected to adopt a wait-and-see approach to assess the impact of earlier tightening measures.

The MPC will hold its next quarterly sitting from May 21 to May 23, 2025.

“Barring internal or external shocks, our projections suggest a steady disinflation path, likely settling between 17–19% by mid-year on base effects and stable prices,” Databank stated.

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Speaking on JoyNews’ Newsfile, the former Dalex Finance CEO said Dr. Adongo’s public remarks were unusual and inappropriate for someone serving on the central bank’s board.

“When I heard Dr. Isaac Adongo speaking about the over-the-counter dollar issue, I was thinking to myself, why would a board member get involved in something like that?” Ken Thompson asked.

“It’s a PR matter. Why are you getting involved?”

Mr. Thompson stressed that such issues should be handled by communication professionals or executives directly managing monetary operations, not board members.

“There are a lot of issues related to it, and really, I wouldn’t have gotten involved in it at all as a board member,” he said.

“What he did was almost rare. I haven’t come across those kinds of situations. That’s where I stand on the matter.”

His comments came days after Dr. Adongo announced plans to intensify restrictions on over-the-counter access to foreign currency.

In an interview on PM Express with Evans Mensah, Dr. Adongo explained the policy direction: “If you put your dollars in the bank account, it is okay. We are happy with that; you can only get dollars if indeed you are going to use them for a dollar-denominated transaction.”

The announcement has stirred debate, with critics calling for clearer communication and better coordination from the central bank.

Mr. Thompson believes such pronouncements, especially when coming from a board member, create confusion about roles and weaken institutional discipline.

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Speaking to host George Wiafe, Dr. Zakaria explained that the Bank of Ghana has strategically met market demand without drawing down its foreign exchange buffers.

“If we were that heavy in terms of support to the market, we would not be doing well with reserves,” he said. “But if there is one thing we’ve done well under the IMF programme, it is reserve accumulation.”

He described Ghana’s reserve performance as “very, very impressive.”

“Look at the IMF target — we have already achieved it. The target was three months of import cover. We’re now at 3.7 months using the IMF’s own metric,” Dr. Zakaria noted. “If you include petroleum funds, we’re even at 4.7 months.”

Dismissing claims that the central bank is depleting reserves to prop up the cedi, he said, “Unfortunately, if this were the case, the market would have seen through it. Market players are very smart. They wouldn’t trust us, and the rally would be short-lived.”

Dr. Zakaria emphasized that the current reserves are organically accumulated rather than dependent on debt or short-term inflows.

“At the end of April, we were above $10 billion. And we expect to hit $11 billion by the end of June,” he revealed. “This is way above what’s expected under the IMF programme. That’s what’s giving the market confidence.”

He added that this level of reserve accumulation represents a fundamental shift in the country’s economic position.

“This time is different,” he said.

Beyond reserves, Dr. Zakaria pointed to other factors underpinning the cedi’s strength.

“You have the IMF Staff Level Agreement, which sent a strong signal to the world. You have inflation coming down from nearly 24% to 21.2%. You also have fiscal consolidation. Government borrowing is slowing,” he explained.

He also highlighted the Bank of Ghana’s aggressive liquidity management measures.

“We’ve sterilised three times the amount we did last year,” Dr. Zakaria said. “That tells you we’re not flooding the market with cedi liquidity, but we’re still meeting forex demand.”

Describing the central bank’s approach as balanced and effective, he concluded, “We are not intervening recklessly. We’re supporting the market strategically while building buffers. We are in a much stronger position today. And we’re determined to keep it that way.”

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“If we were that heavy in terms of our support to the market, we would not be doing well with our reserves accumulation,” Dr. Zakaria told Joy News.

He described the cedi’s rally as credible and backed by real market confidence, rejecting speculation that the Bank of Ghana is drawing down its buffers.

“Unfortunately, if this were the case, market players who are very smart would have seen through it,” he explained. “The rally would have been short-lived. They wouldn’t trust you.”

Contrary to such speculation, Dr. Zakaria revealed that the central bank has been accumulating reserves faster than expected.

“We are even accumulating reserves much, much faster than what has been expected,” he said. “And that is why the market really thinks this can be sustained.”

On the quality of the reserves, he added: “These are not debt-creating reserves. These are organically accumulated reserves. At the end of April, we had over $10 billion. We expect to hit $11 billion by the end of June.”

Dr. Zakaria noted that these reserve levels exceed International Monetary Fund (IMF) targets. “The IMF program set a target of three months of import cover. We are now at 3.7 months using IMF metrics,” he said. “If you include petroleum funds, we’re around 4.7 months. That’s quite a lot.”

Highlighting the bank’s strategic approach, he said, “We have devised very strategic ways of meeting market demand while still accumulating external buffers.”

“This time is different,” he emphasized.

Dr. Zakaria also cited other factors supporting the cedi’s strength, including the IMF Staff Level Agreement, which sent a positive signal globally.

“We’ve had a Staff Level Agreement with the IMF. That sent a strong message globally. It means things are changing.”

He pointed to progress in inflation management and fiscal consolidation.

“Inflation dropped from nearly 24% to 21.2%. That’s progress,” he said. “Fiscal consolidation is also taking shape. Public sector borrowing has slowed sharply compared to last year.”

The Deputy Governor also spoke about liquidity management. “We’ve sterilised three times more than last year,” he explained. “So we’re keeping cedi liquidity tight while still meeting forex demand.”

“We are not intervening recklessly,” he stressed. “We’re building confidence, not burning reserves.”

“This is not smoke and mirrors,” Dr. Zakaria concluded. “This is real. And we intend to sustain it.”

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He said fintech is bridging access gaps, particularly for underserved and remote communities, and cross-border digital payments are gaining traction, promising to ease trade frictions and accelerate regional commerce.

The Governor was speaking at the 3i Africa Policy Forum on the theme: “One Africa, One Market: Driving Innovation, Investment, and Impact for a Connected Future.”

The forum presented a unique opportunity to build shared momentum and aimed to address key levers for driving Africa’s digital financial integration, including attracting sustainable investment into fintech and digital finance, aligning regulatory approaches to unlock cross-border payments, and empowering SMEs as drivers of regional trade and innovation.

Other initiatives discussed include operationalizing the Digital Trade Protocol to support regulatory convergence, ensuring responsible and secure adoption of stablecoins and digital assets, and unlocking investor capital through strategic de-risking frameworks.

Leaders in policy, regulation, finance, and technology who are shaping Africa’s digital transformation attended the forum.

Dr. Asiama said the forum was not merely to reflect on last year’s Summit outcomes but to translate them into clear, executable strategies.

“The focus is implementation: scaling fintech, digital assets, and cross-border payment solutions to deepen financial inclusion and intra-African trade in alignment with the AfCFTA,” he said.

He noted that regulatory sandboxes and innovation hubs were taking root, offering safe environments to test new technologies within the realities of African contexts.

These gains are being reinforced by modern regulatory approaches, pilot programs, innovation offices, and digital public infrastructure frameworks—all designed to promote inclusive finance, enhance SME participation, and unleash the creativity of Africa’s youth and entrepreneurs.

The Governor said the Bank remains firmly committed to the agenda. Their work with the Pan-African Payment and Settlement System (PAPSS), and more recently the bilateral fintech passporting collaboration with the National Bank of Rwanda, reflect their conviction that regional integration is achievable through trust-based partnerships.

“We are also proud to announce our collaboration with the National Bank of Rwanda and the Global Financial Technology Network (Singapore) on the Next-Gen Digital Payment Infrastructure Project (DPI),” he added.

This initiative aims to modernize Africa’s cross-border payments ecosystem through a central bank-led, innovation-enabled approach co-developed with fintechs and financial institutions.

The project will support scalable pilots that can serve as templates across the continent, accelerating interoperability and unlocking the full potential of Africa’s digital economy.

In a keynote address, Vitaliy Kramarenko, African Department Deputy Director at the IMF, urged policymakers to focus on developing supporting infrastructure, digital finance innovation, and regional trade facilitation, among other priorities.

He emphasized the need for creative solutions, including public-private partnerships, to continue advancing digital infrastructure development.

Despite significant progress in mobile penetration—with cellular subscriptions increasing rapidly since 2000 to about 80 subscriptions per 100 people in sub-Saharan Africa—much more remains to be done.

“Also, despite falling behind other regions in traditional access to finance, as proxied by the number of commercial bank accounts per adult, the region is ahead in mobile financial access, such as the use of mobile money accounts,” he added.

Mr. Kramarenko urged governments to provide essential payment infrastructure and sound policy frameworks to mitigate risks, build resilience, and harness the benefits of digital payments.

Speaking on JoyNews’ PM Express on Wednesday, May 14, he said the Nana Akufo-Addo era of reckless monetary management is over, and Ghanaians are now seeing what leadership with discipline looks like under President John Mahama and Finance Minister Cassiel Ato Forson.

“What is happening now is an intentional policy implementation,” the Bolga Central MP explained.

“It is a complementary effort from the Ministry of Finance and the central bank. The central bank is doing its bit, and government, under the leadership of the Finance Minister, is also doing its bit, so the two of them are collaborating.”

When host Evans Mensah asked if the cedi had now been “arrested,” a reference to then opposition leader Dr. Mahamudu Bawumia’s 2014 claim, Mr. Adongo responded sarcastically.

“No, we have not arrested the cedi. The man who arrested it is out there. What is happening to the cedi now is that we are gradually massaging it to find its true level.”

For the Ranking Member on Parliament’s Finance Committee, this isn’t about grand gestures or media gimmicks. It’s about sending the right message to the market and applying pressure where it matters.

“We are trying to let them know—‘Hey, we are in Ghana now. Akufo-Addo is gone. Bawumia is gone. It is now Ato Forson and John Mahama who are here. If you misbehave, we will deal with you.’ And they are beginning to say, ‘yes sir, yes sir.’ That’s what we are doing.”

Isaac Adongo said the priority is not to chase unrealistic exchange rate targets but to secure lasting macroeconomic balance.

“What we are looking for is stability, not a quantum jump of the cedi from ¢15 to ¢3. What we are doing now is to get the cedi to find the level that supports the economy.”

He explained that while the exchange rate calm is part of the immediate relief strategy, the broader plan is to tackle inflation at its roots.

“This is an initial remedy to give Ghanaians some relief,” he said, “whilst the fruit that we really want to bear is to tackle head-on food inflation.”

This clarification follows recent comments made by BoG board member Dr. Isaac Adongo, who suggested during an interview on JoyNews’ PM Express that such a restriction would soon be enforced.

However, GAB Chief Executive John Awuah dismissed this, stating categorically that no such instruction has been issued by the central bank.

“I can say on authority that as a community of banks, we do not have any directive that bars over-the-counter withdrawal of USD or any foreign currency,” Mr Awuah said on JoyNews Prime.

He emphasized that banks only act on formal communications from the Bank of Ghana itself—not individual members of its board.

“And another point I want to make is we need to be very careful here, and with all due respect to the board member who spoke, Dr Isaac Adongo, that as banks, we do not take instructions from individual board directors of Bank of Ghana. Never. We do not take instructions from directors of the board. We take instructions from the Bank—the Bank here being the Bank of Ghana—under the pen of the Governor,” he stressed.

While acknowledging that customers must provide valid reasons to withdraw foreign currency, Mr Awuah noted that there is no outright ban in effect.

“You cannot just show up and withdraw foreign currency without justification. But there is no blanket prohibition,” he clarified.

He reiterated the need to maintain proper communication channels and cautioned against misinterpretations.

“With all due respect to Dr. Adongo, we do not take instructions from board directors. Our directives come from the Bank of Ghana under the Governor’s authority,” he said.

Mr Awuah also touched on Ghana’s recent macroeconomic gains, including improvements in exchange rate stability.

“We’ve witnessed fantastic currency performance. As a community, we must help sustain this stability,” he added, urging public support in protecting the cedi’s recent appreciation.

This clarification comes at a time when the central bank has been implementing various policy measures to strengthen the local currency.

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While existing regulations permit limited dollar withdrawals with justification, the central bank will soon enforce a near-blanket prohibition with minimal exceptions.

In an interview on PM Express with Evans Mensah, the Bolgatanga Central MP explained, “If you put your dollars in the bank account, it is okay. We are happy with that. You can only get dollars if indeed you are going to use them for a dollar-denominated transaction,” he revealed.

He stressed, “The Central Bank’s role includes regulating the use of our legal tender. When you request dollars, we’ll provide cedis instead.”

Adongo expressed confidence that the measure would positively impact exchange rates, coinciding with the cedi’s recent recognition as the world’s best-performing currency.

“You’ll see the results reflected in the dollar rate,” he emphasised. “We’re eliminating dollar speculation through bank accounts. Deposited dollars will only be released for legitimate foreign transactions – dollars are meant for spending abroad, not domestically.”

Cedi’s Remarkable Recovery

The cedi maintained stability at approximately GH₵15.50 to the US dollar between February and April 2025 before strengthening significantly to GH₵13.10 in early May – its most robust position in twelve months.

Analysts at Databank Research attribute this performance partly to Goldbod’s recent agreement with nine mining companies. The deal secures 20% of their monthly estimated gold production (200kg) for domestic purchase before export, with payments made in cedis rather than dollars.

However, the primary driver appears to be a dramatic increase in export revenues. Ghana recorded over $2.3 billion in gold exports during January–February 2025 – the highest two-month total in more than ten years.

The cedi’s strength is not limited to the US dollar. The British pound has fallen to GHS17.45 from GHS20.60 in late April, while the euro has slipped to GHS14.78 from GHS17.72.

The Canadian dollar is also down to GHS9.40 from GHS11.00 over the same period.

On the back of this, authorities are implementing measures to ensure that the gains are sustained to boost the local economy.

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With more than 25 years of experience across both local and international banking institutions, Adei’s appointment marks a significant milestone in Ghana’s financial leadership landscape.

She joins the executive leadership team of CBG comprising Managing Director Dr. Naomi Kwetey and Deputy Managing Director Sheila Azuntaba.

Her addition is expected to further strengthen the leadership synergy needed to drive the bank’s bold vision of delivering exceptional value to its customers.

Adei has held various high-level roles within CBG, most recently leading the bank’s International and Diaspora Business, where she spearheaded strategies that increased diaspora engagements.

Her deep understanding of banking, both in Ghana and abroad, has earned her a reputation for excellence, innovation, and visionary leadership.

She previously served in executive positions at uniBank and held senior roles in the United States with prestigious financial institutions such as JP Morgan Chase, PNC Bank, and SunTrust Bank.

Her experience cuts across Wealth and Investment Management, Corporate Banking, Strategy, Project Management and Business Transformation.

A graduate of Georgetown University with an MBA, and a holder of two degrees from University of California Los Angeles (UCLA) graduating Cum Laude.

Adei also champions women’s economic empowerment and financial inclusion, especially among women-owned businesses.

Her appointment is widely seen as a boost to CBG’s mission of delivering impactful and transformative banking services to Ghanaians everywhere.

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