Dr. Ernest Addison, the governor of the Bank of Ghana, has insisted that the economy and certain monetary policy initiatives being carried out by the Central Bank will have a major impact on the stability of the Ghana cedi in 2025.

Speaking on Joy News PM Express Business show on Thursday, January 2, 202, Dr. Addison, mentioned the Domestic Gold Programme as one initiative that have ensured the Cedi's recent stability.

“The Domestic Gold Purchase Programme has been one of the major factors that has contributed to cedis’ recent recovery and we expect that going forward that will be maintained to support the cedi’s performance,” Dr. Governor said.

Dr. Addison stated in an interview with Joy Business that the first half of 2024 saw the cedi's performance primarily due to an ambitious International Monetary Fund program "that made it difficult to maneuver and support the cedi."

The cedi lost about 22.7% of its value versus the US dollar as of November 2024, according to the Bank of Ghana's Economic and Financial Data, compared to 26.2% over the same month in 2023.

But Dr. Ernest Addison noted that if there hadn't been unpredictability surrounding the general elections on December 7, 2024, which affected market confidence and demand for the local currency, it might have finished the year in a better market.

The governor was upbeat about the cedi's prospects for this year, although he acknowledged that they will depend on specific fiscal and monetary front actions.

After the country's economy rebounded in the second half of 2024 and it met the IMF program's reserves requirement, the governor said, "we had the space to support the local currency, resulting in some appreciation."

Dr. Addison added: “we cannot rule out the impact of the incoming administration budget and how that will contribute to the cedis’ performance in 2025.





KA