By Francis Ntow, GNA
Accra, Nov. 9, GNA – The cedi has depreciated by 9.5 per cent against the US dollar between January and September this year, despite recording a 40.7 per cent appreciation in 2025, Dr Johnson Pandit Asiama, Bank of Ghana Governor has said.
The Cedi depreciated by approximately 7.9 per cent during the first half of 2026, before the decline increased to 9.5 per cent by September 18, on the back of more demand for foreign exchange and intensified global uncertainty.
Dr Asiama said this at the meeting with the Parliamentary Committee on Economy and Development, where he provided an update on the conduct of monetary policy during the first half of 2026 and broader macroeconomic and financial sector developments.
He attributed the decline in the value of the Cedi against its major trading currency in nine months of 2026 to higher energy-related import payments, dividend repatriation and global risk aversion associated with the Middle East conflict.
However, he noted that the changes in the foreign exchange market remained the lowest in four years, describing trading conditions within the period as ‘orderly’ despite global shocks and rising demand for dollars.
“The cedi depreciated by 7.9 per cent against the US dollar in the first half of 2026 and by 9.5 per cent by 18 September. This adjustment followed the substantial appreciation of 40.7 per cent in 2025,” he said.”
“Even so, volatility during the first half was lower than in the corresponding period of each of the previous four years, while market conditions remained orderly,” the Central Governor stated.
He attributed the relative calm to the Bank’s overhaul of its foreign exchange intervention framework in 2025, built around transparency, rules-based conditionality, and certainty for market participants.
Under the new framework, the Bank has moved towards pre-announced intervention windows, guided by clearer, rules-based triggers to minimise excessive volatility, reduce discretion and limit the uncertainty that can amplify market movements.
The Bank has also strengthened its forward guidance on reserve objectives and on the conditions under which it would not intervene, giving exporters, importers and financial institutions a more predictable framework for planning, hedging and managing foreign exchange exposures.
On reserves, the Central Bank Governor mentioned that gross international reserves stood at US$12.94 billion at end-June, equivalent to five months of import cover, after reaching US$13.8 billion at the end of 2025.
Reserves later declined to US$11.07bn, equivalent to 4.2 months of import cover, at end-August, before recovering to US$12.05bn, or 4.5 months of import cover, by September 22, supported by strong export performance and a trade surplus of US$8.81bn in the first half of the year.
Dr Asiama said reserve accumulation was now anchored by the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), which became operational in April 2026 and targets 15 months of import cover by 2028.
He explained that the transfer of the costs associated with domestic gold purchases to the Ghana Gold Board (GoldBod) was expected to reduce the quasi-fiscal burden on the Bank’s balance sheet and support its financial position.
Looking ahead, he said the Bank would maintain a cautious and data-dependent policy stance, closely monitoring pressures from global oil prices, exchange rate movements and domestic price adjustments, and take the necessary policy actions to safeguard price stability.
He reaffirmed the Bank’s commitment to strengthening the foundations of monetary policy through more effective liquidity management, a transparent foreign exchange framework, sustained reserve accumulation and reforms to restore the Bank’s financial position.
GNA
Edited by Linda Asante Agyei
Reporter: Francis Ntow
Email: [email protected]