Prices will soon reduce to reflect cedi gains- BoG Governor assures

Governor of the Bank of Ghana, Dr. Johnson Asiama, says consumers can expect a gradual reduction in the prices of goods and services.

Speaking at a press briefing following the Monetary Policy Committee (MPC) meeting on Friday May 23, 2024, Dr. Asiama noted that while inflation dynamics typically lag exchange rate movements, the sustained strengthening of the local currency will to ease import-related cost pressures in the coming months.

“You can understand that some people stock their goods at a higher exchange rate. So naturally, even with the appreciation – it takes a while for you to see that adjustment. However, rest assured that you will see the adjustment certainly so long as there is competition, so long as it is not a monopoly, and we will see that kind of phenomenon very soon.”

The cedi has seen gains of nearly 24% year-to-date.

Retailers and importers are under pressure to reflect the improved performance of the cedi in their pricing decisions as part of broader efforts to consolidate macroeconomic stability.

But the Governor believes the appreciation of the cedi must be put into proper context.

He downplayed concerns that the local currency’s recent rally could undermine Ghana’s export competitiveness adding that, the MPC carefully examined exchange rate dynamics and believes that the current gains do not pose a structural risk to the economy’s trade performance.Ghanaian food recipes

“Much as you want to have cedi stability in nominal terms, the important thing here is to ensure that in real terms, the cedi is not appreciating persistently. We think that where we are now, we don’t have that problem of real appreciation that would adversely impact our competitiveness.”

The local currency has surged to its strongest performance against its major trading currencies.

This is an impressive turnaround from the sharp depreciation trends seen in recent years and marks an all-time high in percentage terms

It has appreciated by 24.1% against the US dollar, 16.2% against the British Pound and 14.1% against the Euro according to the latest data by the Bank of Ghana.

Per the May 2025 Summary of Economic and Financial Data, the cedi is currently trading at around GH₵11.85 to the dollar – GH₵15.84 to the British Pound and GH₵ 13.34 to the Euro.

Source: CitiNewsroom