Trust the Data: BoG Governor on Cedi Stability, Price Hedging, and Dollarization
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has called on Ghanaians to rely on official data when making financial decisions, rather than speculations from unofficial sources. Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting, Dr. Asiama emphasized that the cedi’s stability is backed by strong economic fundamentals, including a doubled trade surplus and improved current account balance.
Cedi Stability and Economic Fundamentals
Dr. Asiama highlighted that Ghana’s international reserves have reached $11 billion as of June 2025, providing a strong buffer for the country’s external sector and currency stability. He attributed the cedi’s stability to improved external sector performance, supported by strong remittances and better earnings from gold and cocoa exports, as well as effective coordination between fiscal and monetary policy.
Price Hedging Program for Gold Exports
The Governor revealed that the Bank of Ghana is considering a price hedging program for its gold exports to minimize losses in case of declining international prices. This move is timely, especially as firms like Barclays PLC project a potential decline in gold prices in the coming months. Dr. Asiama emphasized that the proposed hedging strategy could help the Bank of Ghana manage potential shocks to the country’s export earnings and support long-term macroeconomic resilience ¹ ³.
Measures to Curb Dollarization
Dr. Asiama assured that the Central Bank will take drastic measures to curb the dollarization of the cedi, including stepped-up enforcement of legal tender laws. He emphasized the need for businesses to adopt local currency pricing, citing examples from countries like South Africa and Kenya. The Governor encouraged export-oriented businesses to reinvest their proceeds locally, suggesting that firms that do so deserve recognition and support, such as access to credit products and forex liquidity facilities ¹.
Call for Collaboration and Trust in Official Data
Dr. Asiama urged the media and public to focus on factual data rather than unsubstantiated forecasts. He encouraged market participants to share information with the Bank of Ghana to help maintain market stability. By working together, Dr. Asiama believes that Ghana can achieve greater economic stability and growth.
