Professor Patrick Asuming, an economics lecturer at the University of Ghana, has characterized the recent depreciation of the Ghana cedi as within reasonable limits, suggesting it does not pose an immediate threat to macroeconomic stability. Speaking on Joy FM’s Top News Night on Monday, May 25, Prof. Asuming noted that while the local currency has weakened slightly in recent weeks, the movement is moderate compared to historical sharp declines.
Context of Recent Cedi Performance
The cedi experienced a period of relative stability and even appreciation in 2025, a performance attributed to stringent monetary policies, improved foreign reserves, an International Monetary Fund (IMF)-supported program, and robust inflows from gold and cocoa exports. This stability had bolstered confidence in the Ghanaian economy.
However, recent shifts in the foreign exchange market have triggered public concern, with businesses and importers fearing a return to prolonged currency instability. These concerns arise as the cedi shows signs of weakening against major foreign currencies, particularly the US dollar.
Bank of Ghana’s New Intervention Strategy
Prof. Asuming explained that the current trend reflects a deliberate policy by the Bank of Ghana (BoG) to allow controlled flexibility in the foreign exchange market. Instead of aggressively defending a fixed exchange rate, the central bank is adopting a new framework for market interventions.
Leave a Reply