The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has clarified that the Central Bank does not operate with a specific appreciation target for the Ghanaian cedi, amid ongoing public speculation and market commentary on the currency’s performance.
Speaking at a press briefing following the latest Monetary Policy Committee (MPC) meeting, Dr. Asiama explained that while the Bank remains concerned about sharp and excessive fluctuations in the cedi’s value, it does not aim for a predetermined exchange rate level to trigger an intervention.
“The cedi is an endogenous variable and as much as we don’t want it depreciating excessively, we also do not keep a specific target to which we expect it to appreciate,” Dr. Asiama told journalists.
“There’s been speculation out there, with people quoting all kinds of figures. But you will notice that no such target has ever been officially communicated by the Bank of Ghana.”
Instead, he emphasized that the Bank’s priority is to ensure that exchange rate volatilities remain manageable, with its attention focused on trends in both nominal exchange rates and the real effective exchange rate (REER), a measure that adjusts the nominal rate for inflation and trade competitiveness.
“What matters in this whole game is the real exchange rate. That is where our focus is,” he stressed. “The committee looked into the movements in the REER, and as of now, we do not believe there is a persistent real appreciation that would undermine Ghana’s external competitiveness.”
Dr. Asiama also reassured the public that the Central Bank is closely monitoring developments and will act decisively if the situation calls for intervention, noting, Where we are now, we are observing things. However, we haven’t gotten to a stage where we need to step in. When we do, the committee will take the appropriate decision,” he said.
The Governor’s comments come amid increased speculation about currency movements and exchange rate forecasts, with the Ghanaian cedi having shown some signs of relative stability in recent weeks.
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