The Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, has cautioned market participants against speculative activities that could undermine confidence in the economy and place unnecessary pressure on the foreign exchange market.
The Bank of Ghana (BoG) has therefore urged businesses and other economic actors to base their financial decisions on prevailing market fundamentals rather than speculation, as monetary authorities work to sustain recent gains in exchange rate stability and broader macroeconomic improvements.
According to the central bank, aligning transactions with genuine demand and underlying economic conditions will help preserve the stability of the cedi and reinforce ongoing economic recovery efforts.
“The fundamentals of this economy do not reward speculation against our currency. I urge every actor, whether you’re a bank, importer, exporter or investor, to transact on genuine and present needs, not out of fear and panic. Our reserves continue to build, and they are there as buffers to help support this economy,” she said.
The caution comes amid renewed demand pressures on the cedi. By the close of last week, the local currency had depreciated by 0.94% week-on-week against the US dollar, while weakening by 0.70% against the British pound and 1.24% against the euro. This pushed the cedi’s year-to-date loss against the dollar to 10.14%.
Despite these movements, the Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, noted that recent improvements in macroeconomic indicators have helped strengthen the cedi and restore stability, stressing the need for continued prudent decision-making by market participants.
She emphasised that transactions should be driven by actual business needs and supported by prevailing economic conditions to maintain stability in the foreign exchange market and ensure that recent gains are not reversed.
“We all saw the lessons plainly last year. Those who bet against the cedi and hoarded foreign currency soon found themselves on the wrong side of the trade, unwinding at a loss as the currency staged one of the world’s strongest recoveries through 2025. Traders will tell you there was a time when people who held foreign currency began to dump,” she added.
The central bank believes that discouraging speculative demand for foreign currency and allowing market fundamentals to guide decisions will contribute to a more stable exchange rate environment, lower inflationary pressures, and stronger economic resilience.
