Mahama backs BoG independence, as nation marks Cedi@60          

By Joshua Worlasi AMLANU

President John Dramani Mahama reaffirmed his support for the Bank of Ghana’s operational independence as the nation marked 60 years of the cedi, saying credible monetary policy is essential to sustaining recent gains in inflation, reserves and exchange-rate stability.

Speaking at the Cedi@60 International Currency Conference, President Mahama said the central bank’s autonomy is “not a personal preference but an economic necessity”, arguing that trust in institutions is now as important as technical policy tools in safeguarding the value of money.

President Mahama said Ghana had 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$11.4billion, 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$6.2billion in the year’s first eight months.

“These reforms have contributed to significant exchange-rate stability, which is critical for business planning and public confidence,” President Mahama said.  “The recent upgrade of Ghana’s sovereign rating by S&P to B reflects renewed market trust.”

Bank of Ghana Governor Dr. Johnson Pandit Asiama in a speech emphasised 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,” he said.

He cautioned that Ghana faces new pressures from digitalisation, 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, he said. These shifts, according to him, require strong institutional coordination to ensure that both physical and digital forms of money remain secure and trusted.

Dr. Asiama said the central bank is stepping up efforts to “re-encode the cedi as the unquestioned medium of exchange”, describing currency substitution and dollarisation as threats to the country’s economic sovereignty.

He noted that while digital channels are expanding rapidly, cash continues to play a vital role in financial inclusion and resilience.

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 behaviour and institutional expectations.

The president praised BoG’s role in stabilising the currency and urged continued collaboration between fiscal and monetary authorities to maintain discipline.

He said the next phase of the country’s currency journey requires evidence-based decision-making and alignment between institutions.

The post Mahama backs BoG independence, as nation marks Cedi@60           appeared first on The Business & Financial Times.

Read Full Story