The Bank of Ghana has moved to reassure markets and the public of continued stability in the local currency, following a sharp appreciation of the cedi in recent weeks.

Speaking at the opening of the Bank’s 124th Monetary Policy Committee (MPC) meeting in Accra on Wednesday, Governor Dr. Johnson Asiamah said the central bank would deepen ongoing reforms to consolidate recent gains, which have seen the cedi strengthen by nearly 19 percent so far this year.

Dr. Asiamah attributed the rally to disciplined fiscal management, tight monetary policy, and improved investor confidence, adding that efforts would now focus on boosting foreign exchange inflows and tightening regulation in the forex market.

“Importantly, the cedi has appreciated sharply by nearly 19 percent between April and May, helping to ease imported inflation pressures and restore public confidence,” he said. “This reflects a combination of prudent monetary policy, improved market sentiment, and gains in the external sector.”

However, the governor cautioned that despite the optimistic outlook, key economic challenges remain. He cited lingering inflationary pressures, supply disruptions in the north and Sahel regions, and the risk of external shocks stemming from global commodity price volatility and geopolitical tensions.

“Significant challenges persist. The inflation outlook, while improving, remains vulnerable to second-round effects and food supply constraints,” he said. “Global trade tensions, particularly the recent US-led tariff disputes, have increased market uncertainty and could affect financial flows in emerging markets like ours.”

The MPC meeting comes at a time of relative currency stability and moderated global financial pressures. At its last meeting in March, the committee raised the policy rate by 100 basis points to 28 percent in a bid to curb inflation expectations.

Market analysts now expect the central bank to maintain the current policy rate to support a gradual economic recovery

Source:TheDotNews