Introduction to Cedi@60
President John Dramani Mahama has reaffirmed his support for the Bank of Ghana’s operational independence as the nation marks 60 years of the cedi. He emphasized that credible monetary policy is essential to sustaining recent gains in inflation, reserves, and exchange-rate stability.
Progress in Macroeconomic Stability
Speaking at the Cedi@60 International Currency Conference, President Mahama noted that Ghana has made notable progress in restoring macroeconomic stability over the past 10 months. Inflation has fallen to 8 percent, the first single-digit print since 2021. Gross international reserves stand at US$11.4 billion, equivalent to 4.8 months of import cover as of September. The cedi has appreciated 34.9 percent year-to-date, reversing the 19.2 percent depreciation recorded in 2024, while the trade surplus has tripled to US$6.2 billion in the year’s first eight months.
Importance of Exchange-Rate Stability
President Mahama stated that these reforms have contributed to significant exchange-rate stability, which is critical for business planning and public confidence. He also mentioned that the recent upgrade of Ghana’s sovereign rating by S&P to B reflects renewed market trust.
The Role of the Bank of Ghana
Bank of Ghana Governor Dr. Johnson Pandit Asiama emphasized the currency’s symbolic and economic importance. He said the cedi had carried the aspirations of a young republic and mirrored Ghana’s periods of progress and hardship. The cedi has remained central to policymaking, market sentiment, and daily life.
Challenges and Opportunities
Dr. Asiama cautioned that Ghana faces new pressures from digitalization, cybersecurity risks, and global uncertainty. The rise of digital payments, advanced authentication technologies, and experimentation with central bank digital currencies are reshaping how people transact and save. These shifts require strong institutional coordination to ensure that both physical and digital forms of money remain secure and trusted.
The Need for Balanced Reforms
President Mahama said there is a need for balanced reforms as Ghana adapts to a hybrid monetary system wherein cash, electronic payments, and digital assets co-exist. He mentioned that the central bank must continue to act as a guardian of trust even as technology accelerates changes in payment behavior and institutional expectations.
Conclusion
In conclusion, President Mahama’s support for the Bank of Ghana’s independence is crucial for maintaining the country’s economic stability. The progress made in macroeconomic stability, the importance of exchange-rate stability, and the role of the Bank of Ghana all highlight the need for continued collaboration between fiscal and monetary authorities. As Ghana marks 60 years of the cedi, it is essential to prioritize evidence-based decision-making and alignment between institutions to ensure a stable and secure financial future.
