The Bank of Ghana (BoG) has warned that maintaining the cedi’s recent stability will increasingly depend on managing market expectations, even as the local currency records one of its strongest and most stable performances in years.

Opening the 128th Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Pandit Asiama said the cedi’s resilience in 2025 was driven by improved investor confidence and a stronger external position. However, he stressed that future stability will be more sensitive to sentiment, perceptions, and expectations within the market.

“Foreign exchange stability and expectations. The cedi has been remarkably stable in 2025, reflecting improved confidence and a strong external position. While recent pressures appear largely seasonal, expectations will now play a central role in sustaining stability,” Dr. Asiama stated.

The Governor’s remarks signal a shift in focus from traditional structural supports—such as foreign reserves and inflows—to the growing importance of confidence, effective communication, and policy credibility in anchoring currency stability.

Ghana’s strengthened external buffers and improved current account performance helped calm exchange rate volatility in 2025, offering relief to businesses and consumers alike. However, Dr. Asiama cautioned that negative market sentiment could quickly erode these gains, even in the absence of major economic shocks.

He explained that recent pressures on the cedi are largely seasonal, suggesting no immediate structural threats to the currency. Nonetheless, he emphasised that managing expectations will be critical as the central bank calibrates its policy stance heading into 2026.

Market analysts say the Governor’s comments underscore the need for clear and consistent policy signals, disciplined fiscal management, and transparent communication to prevent speculative pressures from resurfacing in the foreign exchange market. The Bank of Ghana’s focus on expectations highlights its determination to protect policy credibility as a first line of defence for currency stability, particularly as the country faces closer scrutiny under its IMF-supported programme.