By Nadia Ntiamoah
As Ghana marks six decades of the Cedi, the Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has hailed the country’s sharp decline in inflation as a major victory in the fight for economic stability and a fitting symbol of resilience ahead of the currency’s 60th anniversary celebration.
Speaking at the national launch of Cedi@60 at the Accra International Conference Centre under the theme “60 Years of the Cedi: A Symbol of Sovereignty, Stability and Economic Resilience,” Dr. Asiama said the Cedi’s journey reflects not just the evolution of the financial system but also the nation’s ability to overcome severe inflationary pressures and restore economic confidence.
From Crisis to Stability
He recalled that just three years ago, Ghana faced one of its worst economic crises in recent history.
Inflation soared to 54.1% in December 2022, the highest in two decades, while food inflation surged to nearly 60%, crippling household incomes and eroding savings.
“The surge in prices during that period was not just a set of economic figures—it was a lived experience for every Ghanaian,” Asiama said.
“Families saw their purchasing power vanish overnight, businesses struggled to restock, and the cost of living became unbearable.”
At the same time, the Cedi depreciated sharply—losing over 50% of its value in 2022, and was ranked by Bloomberg as the worst-performing currency in the world. The crisis exposed deep structural weaknesses in Ghana’s fiscal and monetary systems, compounded by global shocks from the pandemic and tightening financial markets.
The Turnaround Story
Fast forward to 2025, and the picture has changed dramatically. Dr. Asiama reported that headline inflation had fallen to 9.4% as of September 2025, reaching the BoG’s medium-term target range of (8±2)% for the first time in four years.
The Cedi, once battered and unstable, has appreciated by 37.4% year-to-date, making it the best-performing currency in Sub-Saharan Africa, according to the World Bank.
“Our gross international reserves now stand at about US$10.7 billion, providing a robust cushion against external volatility,” he said. “We have moved from one of the most unstable periods in our economic history to one of the most stable in recent memory.”
He attributed these gains to deliberate fiscal consolidation by the government, prudent monetary policy tightening by the BoG, and renewed investor and public confidence.
He stressed that these improvements were not accidental but the result of coordinated and sometimes painful policy choices made to protect the value of the Cedi.
“Stability does not come by chance. It is earned through discipline, consistency, and the courage to take tough decisions,” he emphasized.
“The drop in inflation represents not only economic recovery but also restored national confidence in our currency.”
The Role of the Cedi in Inflation Control
According to Dr. Asiama, the Cedi remains the anchor of the monetary system, and its strength or weakness directly affects inflation and the cost of living.
He noted that the Bank’s focus on maintaining exchange rate stability has been instrumental in curbing inflation expectations and restoring purchasing power.
“When the Cedi is stable, inflation stabilizes. It is that simple,” he remarked. “Every Ghanaian feels the difference—whether in fuel prices, food markets, or transport fares. Our task as the central bank is to ensure that this stability is sustained.”
He further explained that the Bank’s policy measures—ranging from tightening the monetary policy rate to improving foreign exchange operations and enhancing regulatory oversight—have collectively contributed to the disinflation process.
Modern Challenges
The governor cautioned that despite the impressive gains, new challenges could threaten the inflation outlook. These include global geopolitical tensions, climate-related supply disruptions, and the impact of digital finance on monetary transmission mechanisms.
“Modern central banking is far more complex today than it was decades ago,” he said. “We are navigating an environment where information moves at lightning speed, and global shocks can reach our markets in hours. Our challenge is to remain vigilant and proactive.”
He reiterated the Bank’s commitment to modern tools of monetary management, including the continued piloting of the eCedi, the Central Bank Digital Currency (CBDC), which aims to enhance payment efficiency and support financial inclusion without compromising monetary control.
A Celebration of Economic Resilience
Dr. Asiama said the Cedi@60 anniversary comes at a symbolic time—just as Ghana regains economic stability and restores confidence in its currency.
Over the next year, the BoG will host a series of exhibitions, public lectures, and community engagements to educate Ghanaians about the history and significance of the Cedi, as well as its role in inflation management and national development.
“This celebration is not about nostalgia; it is about progress,” he said. “We must not only reflect on how far we have come but also commit to protecting what we have achieved.”
Honouring the Past, Safeguarding the Future
The governor paid tribute to the first President, Dr. Kwame Nkrumah, who introduced the Cedi in 1965 as a symbol of full independence, and to the successive governors and staff of the BoG who have preserved its integrity over six decades.
“As we celebrate 60 years of the Cedi, let us remember that a stable currency is not merely a policy outcome—it is a public good that sustains livelihoods and secures the future,” he concluded. “Our mission remains clear: to keep inflation low, maintain stability, and ensure the Cedi continues to reflect the strength and confidence of the Ghanaian people.”
