Cedi Depreciation: Bank Of Ghana Governor Johnson Asiama Gives Advice to Dollar Hoarders
- Governor of the Bank of Ghana, Dr Johnson Asiama, has touted his confidence Ghana cedi amid concerns it could depreciate again
- The Ghana cedi has appreciated cumulatively by 37.04% as of October 2026, according to the Bank of Ghana
- According to the World Bank, the cedi is the best-performing currency in Sub-Saharan Africa in the first eight months of 2025
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Governor of the Bank of Ghana, Dr Johnson Asiama, has shared some advice for people betting on the cedi's downfall.
Asiama said that holding dollars in anticipation of a return to cedi depreciation is not a wise choice.
Source: Getty Images
He explained that market dynamics have changed in reflection of the policy environment.
“We should all reaffirm our collective responsibility to protect the value and integrity of the currency. In addition to being a medium of exchange, the Cedi is a symbol of our pride, heritage and shared aspirations for a prosperous future.”
Asiama's comments were read on his behalf at the 29th National Banking and Ethics Conference in Accra.
3News reported that Asiama further noted that the Ghana cedi has appreciated cumulatively by 37.04% year-to-date (October 17, 2025), reversing the sharp 19.2% depreciation in 2024. It is expected to depreciate towards the end of 2025.
According to the World Bank, the cedi is the best-performing currency in Sub-Saharan Africa in the first eight months of 2025. Inflation has eased, driven by a tight monetary policy stance, exchange rate stability helped by gold exports, and a broad moderation in price pressures.
“We shall continue to sustain the gains through robust implementation of monetary policy, reserve management, the Gold-for-Reserve Programme and stable remittance flows."
He also said that while the stability of the cedi could be threatened by global dynamics, including a possible rebound in the US dollar or reduction in commodity prices, the domestic policy stance is strong enough to cushion such shifts.
“We have strengthened enforcement and monitoring efforts in the foreign exchange market to ensure effective regulation, fair pricing, transparency and reduced incentive for speculative arbitrage."
What has the central bank said about cedi trend
Speaking during the IMF/World Bank Spring Meetings, Asiama said Ghana’s foreign exchange market has regained its stability, with commercial banks now driving trade rather than the central bank.
He said the interventions by the Bank of Ghana were temporary measures to cushion the market during a period of heavy outflows and lumpy payments.
Source: Getty Images
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.
The period also saw some domestic debt exchange bondholders deciding to exit their investments following the appreciation of the cedi.
Forex analyst explains new normal for the cedi
Samuel Asiamah, a forex analyst, gave insight to YEN.com.gh that could help people looking to navigate the forex volatility as the cedi continued.
The practice of hoarding dollars to guard against inflation and protect, purchasing power is now riskier.
Asiamah explained that the cedi’s fair value has adjusted closer to equilibrium, so big profits from dollar hoarding are shrinking.
Source: YEN.com.gh
