The Governor of the Bank of Ghana, Dr. Johnson Asiama, has disclosed that the Central Bank is not pursuing a rigid exchange rate target or a predetermined band, stressing its continued commitment to a flexible exchange rate regime anchored in market fundamentals and responsive to economic shocks.
Speaking at the “Banking the Last Mile” event hosted by the Ghana Association of Banks and Absa Bank Ghana on Tuesday 17th June 2025, the governor reiterated the central bank’s readiness to respond to market developments to safeguard gains made.
“Let me be clear: we are not pursuing a rigid exchange rate target or a predetermined band. The Bank of Ghana remains committed to a flexible exchange rate regime, one that is anchored in fundamentals, responsive to shocks, and supported by credible policy tools.
“We remain vigilant and fully prepared to act in a timely and measured manner to preserve orderly market conditions and safeguard the broader macroeconomic stability necessary for financial innovation and inclusion to thrive,” he said.
Dr. Johnson Asiama also dismissed suggestions of artificial interventions, asserting that the currency’s stability is the result of deliberate policy choices and stronger macroeconomic performance.
“As we deepen our collective efforts to accelerate digital finance, I understand that many are watching the macroeconomic landscape closely, particularly the performance of the Ghana cedi. Let me take a moment to reaffirm that the recent stability of the exchange rate is not accidental, nor is it the result of artificial interventions.
“Rather, it reflects the cumulative impact of sound monetary policy, enhanced transparency in the foreign exchange market, and improved external sector fundamentals. The Bank of Ghana has adopted a disciplined, market-oriented approach, reducing its reliance on reserves and instead leveraging a more efficient FX auction framework, enhanced market surveillance, and stricter alignment of foreign exchange demand with real-sector transactions.
“These measures have curtailed speculative pressures and ensured that foreign exchange flows reflect legitimate trade, investment, and remittance activity,” he said.
Dr. Johnson Asiama added that Ghana’s ongoing IMF-supported fiscal consolidation is beginning to bear fruit, with improved investor confidence, stronger external financing flows, and sustained disinflation helping to anchor expectations and support the currency.
“The macro-fiscal adjustment being implemented under the IMF-supported programme is yielding results, fiscal discipline is restoring credibility, and external financing flows have improved. Combined with sustained disinflation, positive real interest rates, and resilient export and remittance inflows, these developments have anchored expectations and restored confidence in the currency’s value,” he remarked.
