The Bank of Ghana’s Governor, Dr. Johnson Asiamah, has cautioned that the recent improvements in the cedi’s performance and stability, though positive, must not be viewed as a lasting accomplishment. He stressed that only through continuous economic discipline and enhanced productivity can genuine long-term currency stability be secured.
Dr. Asiamah made these comments on Wednesday during a courtesy visit by the Asantehene, Otumfuo Osei Tutu II, to the Central Bank’s Accra headquarters. Addressing an earlier inquiry the King had raised at Manhyia about the cedi’s trajectory, the Governor provided an assessment that balanced encouraging news with words of warning.
“We are happy to report that the cedi ended the year in a much stronger position than many would have anticipated a year ago,” Dr. Asiamah stated.
He referenced Forbes magazine’s analysis, which indicated that with the cedi trading at roughly GH¢10.67 against the US dollar by year’s end, it ranked among Africa’s stronger-performing currencies throughout 2024.
According to the Governor, multiple elements contributed to this favorable result.
“This reflects not only improved sentiment, but also better fundamentals, stronger reserves, reduced inflation and restored policy credibility.”
Yet he quickly shifted toward a more measured tone, delivering an important warning for those involved in policy, financial markets, and the broader population.
“We remain careful in all these, not to confuse improvement, with permanency.”
Dr. Asiamah went further, underlining that maintaining a stable exchange rate represents an ongoing endeavor rather than a final achievement.
“A currency remains strong only when the real economy beneath it is productive, only when the economy beneath it is competitive and only when the economy beneath it is disciplined,” he asserted.