BoG Governor Downplays Cedi Slippage, Attributes Dip to Seasonal Trade Pressures

Governor of the Bank of Ghana, Dr. Johnson Asiama, has assured that the recent depreciation of the cedi is temporary and does not represent a reversal of the currency’s stability gains in recent months.

Speaking at an SME forum organised by the Ghana Association of Banks on Thursday, September 11, Dr. Asiama explained that the modest weakening is largely due to seasonal trade-related pressures and market adjustments tied to ongoing reforms.

“The recent modest depreciation, some have wondered, reflects the market adjusting to reforms and seasonal trade patterns. It is not at all a reversal,” he said. “We expect continued interbank activity and fiscal discipline to restore balance and reinforce long-term stability.”

He emphasized that the central bank’s strategy goes beyond defending the currency, focusing instead on protecting reserves, anchoring investor confidence, and ensuring a predictable exchange rate environment that benefits businesses.

“The purpose of these reforms is not simply to defend the cedi; it is to equip Ghanaian enterprises, especially SMEs, with a transparent, predictable FX environment that enables them to compete confidently in regional and global markets,” he noted.

His comments come after the Bank of Ghana issued a new foreign exchange directive on August 20, 2025, restricting banks from granting corporates cash withdrawals in foreign currency unless equivalent FX deposits have been lodged.

The cedi has come under renewed pressure in recent weeks, with its year-to-date gain narrowing to 18.51% on September 9 from 20.35% on September 5. Bloomberg also reported that the local unit weakened by 13% in the third quarter, erasing part of its earlier 50% rally in the three months through June, when it ranked as the world’s best-performing currency on the back of strong bullion prices.

Despite these headwinds, the BoG has reduced the scale of its market interventions, with supply volumes lower than in May, June, and July, as it seeks to balance stability with reserve protection.