Professor Patrick Asuming, an economics lecturer at the University of Ghana, stated that the Ghana cedi's recent depreciation is manageable. He believes the currency's weakening is within reasonable historical limits. This suggests the situation does not pose an immediate threat to Ghana's overall economic stability.
The local currency has weakened slightly in recent weeks. However, Professor Asuming noted that these movements are moderate compared to past sharp declines. He explained this trend reflects the Bank of Ghana's strategy. The central bank aims for controlled flexibility in the foreign exchange market. This is instead of rigidly defending a fixed exchange rate.
These comments come as many Ghanaians express worry. Public concern has risen after months of cedi stability. The cedi performed strongly in 2025. This was due to tight monetary policy and strong reserve levels. The International Monetary Fund program also helped. Increased inflows from gold and cocoa exports also boosted the cedi. But recent currency movements have raised fears among businesses and importers. They worry about a return to prolonged instability.
Professor Asuming stated the Bank of Ghana possesses ample reserves. These reserves are sufficient to maintain currency stability. He highlighted the central bank's new approach to market interventions. The goal is to prevent massive currency swings and sharp depreciations. The bank's interventions aim to smooth the rate of depreciation. This keeps the currency within a narrow band, avoiding drastic falls.
The economist also suggested the rapid cedi appreciation seen last year is unlikely to repeat. The Bank of Ghana appears to favour a more flexible exchange rate management system. He pointed out that over the past year, the cedi has generally traded between GHS 10.5 and GHS 11.5 against the dollar. Aggressive intervention is expected only if the rate moves significantly outside this range. The central bank will not continuously inject large dollar volumes just to maintain a single rate.
Professor Asuming argued that keeping the cedi within a predictable range benefits businesses. This predictability aids planning and reduces uncertainty. Businesses can anticipate worst-case scenarios around GHS 12 and best-case scenarios around GHS 10. This stability in planning is valuable.
Economic analysts have identified several factors for the recent depreciation. These include seasonal demand for foreign currency, global market uncertainties, and demand for dollars driven by imports. Despite these movements, Ghana's gross international reserves remain robust. They offer a buffer for the central bank to manage market volatility.