Ghana's Central Bank Reassures Public Amidst Cedi Fluctuations

Ghana's Central Bank Assures Public: No Artificial Cedi Support, Focus on Sustainable Growth Ghana's central bank governor recently addressed concerns about the Cedi's exchange rate, assuring citizens that the bank is not artificially manipulating the currency. In a public address, the Governor stated, "The Central Bank is NOT, and the NOT is in capital letters, using its international reserves to support the Cedi." He explained that such actions would lead to unsustainable appreciation. The Governor's statement follows a period of positive economic indicators. The Ghana Purchasing Managers' Index (PMI) rose above the 50 benchmark, indicating growth in output and new orders. Headline inflation has also steadily declined over the past four months, reaching 21.2% in April – a decrease of 2.6 percentage points since the beginning of the year. The Governor noted that the country's gross international reserves have improved to approximately $11 billion, equivalent to 4.2 months of import cover. The Cedi has also appreciated by 24.1% against the US dollar year-to-date. The Governor highlighted that these improvements are primarily due to disciplined monetary policy, forex auction reforms, and enhanced remittance channels. He emphasized that these are not short-term interventions but part of a broader strategy for sustainable economic growth. The Governor's clear and direct communication helps to build public confidence in the Central Bank's approach to managing the Cedi and the overall economy.