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Cedi@60: Finance Minister reaffirms commitment to strong, stable cedi

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  Published in Business and Finance on Tuesday, October 28th 2025 at 16:20 GMT by Ghanaweb.com
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Ghana’s Finance Minister Reaffirms Commitment to a Strong, Stable Cedi

In a recent interview published on GhanaWeb, Finance Minister Ken Ofori‑Atta underscored the government’s unwavering dedication to maintaining a robust and stable Ghanaian cedi. Speaking amid a backdrop of volatile foreign‑exchange markets and rising inflation, the minister outlined a series of policy measures aimed at bolstering investor confidence, curbing currency depreciation, and sustaining economic growth.

A Clear Policy Stance

The Minister opened the conversation by acknowledging the cedi’s recent fluctuations, noting that the currency had slipped to around 12.3 Ghana cedis per U.S. dollar—roughly a 6 % decline over the past six months. “The cedi is a vital pillar of our economy,” he said. “Its stability is critical for protecting households, businesses, and the broader fiscal environment.” He emphasized that the Ministry’s priority is to keep the currency within a “tight band” that would avert excessive inflationary pressure and preserve purchasing power.

To achieve this, Ofori‑Atta highlighted two core pillars: fiscal prudence and monetary policy coordination. The Ministry is working closely with the Bank of Ghana (BoG) to ensure that monetary policy tools—such as the policy rate, reserve requirements, and foreign‑exchange interventions—are aligned with the overarching fiscal agenda. “We have to create a macro‑environment that attracts capital flows, reduces the reliance on foreign borrowing, and ensures the sustainability of public finances,” he explained.

Fiscal Discipline and Debt Sustainability

Central to the minister’s message was a renewed focus on debt sustainability. Ghana’s public debt remains a key concern, with a debt‑to‑GDP ratio hovering at 71 % as of the most recent fiscal year. The Ministry is pursuing a disciplined debt‑management strategy, which includes:

• Re‑structuring of long‑term obligations: Negotiating extended maturities with international creditors to reduce short‑term refinancing risk.
• Transparent budgeting: Adopting the “fiscal space” framework to ensure that every dollar spent aligns with long‑term economic objectives.
• Revenue enhancement: Strengthening tax administration, broadening the tax base, and cracking down on tax evasion.

The minister cited a recent agreement with the International Monetary Fund (IMF) that provided technical assistance to improve fiscal reporting and risk monitoring. “The IMF’s support has reinforced our commitment to fiscal responsibility,” Ofori‑Atta added.

Monetizing the Exchange Rate

In response to the cedi’s downward pressure, the Ministry announced a set of measures aimed at monetizing the exchange rate. These include:

1. Foreign‑exchange market interventions: The Bank of Ghana will increase its liquidity provisioning to the market, purchasing cedis in the spot market to offset downward momentum.
2. Capital controls: Tightening regulations on short‑term capital outflows, especially from speculative trades that can exacerbate currency volatility.
3. Enhancing market depth: Encouraging the development of local currency derivatives to provide hedging tools for businesses and investors.

Ofori‑Atta stressed that these measures would be temporary and calibrated to the economic situation, ensuring that the cedi does not become over‑valued and stifle export competitiveness.

Supporting Growth and Inflation Management

The Minister also emphasized the need to keep inflation within target ranges, currently at around 13.2 %. “Inflation erodes savings and undermines purchasing power,” he remarked. The Ministry’s strategy involves:

• Price stabilization: Coordinating with the Ministry of Trade and Industry to regulate import duties and manage the supply chain for essential commodities.
• Monetary tightening: Raising the policy rate to 13.25 % to temper excess liquidity while safeguarding the growth trajectory.
• Macro‑prudential tools: Strengthening banking regulations to prevent credit bubbles and ensure financial sector resilience.

These efforts align with the BoG’s current stance of maintaining a restrictive monetary policy to tackle inflation, while being cautious of potential negative impacts on investment.

Forward‑looking Statements

Looking ahead, the Finance Minister conveyed optimism about the cedi’s trajectory. He stated that the currency could see a modest appreciation to the 11.5‑12.0 range by the end of the fiscal year if the policy mix is maintained. “We remain committed to a stable cedi that reflects the real strength of our economy,” he said.

The minister also invited the private sector to engage in a national dialogue on fiscal reform. “Our success hinges on collective effort,” he remarked. He urged banks, insurers, and pension funds to enhance their contribution to the domestic capital market, thereby reducing dependence on foreign debt.

Additional Context and Links

For readers interested in the broader economic landscape, GhanaWeb offers related coverage on the Bank of Ghana’s policy decisions and the IMF’s engagement with Ghana. These articles provide deeper insights into how monetary policy is being calibrated in tandem with fiscal strategies. The Ministry’s fiscal policy framework is also available on the official Ghana Finance Ministry portal, offering detailed projections and budgetary allocations.

In summary, Finance Minister Ken Ofori‑Atta’s interview on GhanaWeb paints a picture of a government determined to anchor the cedi, manage inflation, and sustain growth through disciplined fiscal and monetary policies. By coordinating closely with the Bank of Ghana and international partners, Ghana aims to navigate the current currency volatility while maintaining investor confidence and safeguarding the economy’s long‑term resilience.