BoG assures of adequate reserves to meet rising forex demand; describes current pressure on cedi as temporary

The Bank of Ghana has given an assurance that it is in a strong position to meet seasonal forex demand without any challenge.

It argues that with its international reserves at about US$14.42 billion as of May 2026, this puts it in a comfortable situation to meet requests from businesses without any stress or pressure on its reserves.

The assurance is coming at a time the local currency has recorded some sustained depreciation, with new data from the Central Bank showing that the cedi has depreciated by more than 8% against the US dollar.

Sources close to the Bank of Ghana have indicated that the current market data does not back or support any need for panic among businesses and retailers.

Demand Pressures

According to the Bank of Ghana, the current depreciation of the Ghana cedi, can be described as seasonal, and this is being fuel by demand pressures from the energy sector, due to the Middle East Conflict .

This has seen the price of crude oil hitting new levels, impacting Ghana’s import bill.

It now costs more to buy the same amount of imported oil, which has put pressure on the cedi in the forex market and led to some exaggeration about the cedi’s weakness.

For instance, the  May 2026 Summary of Economic and Finance data by the Bank of Ghana showed that Ghana’s oil import bill has gone up from US$1.6 billion in April 2025  to US$2 billion in April 2026.

BoG Governor on Cedi’s Depreciation

The Bank of Ghana Dr. Johnson Asiama during the 130th Monetary Policy press engagement said there was enough currency buffers to meet market demand, describing the current pressures on the cedi temporary.

He attributed the seasonal demand to dividend payments and higher demand from the energy sector.

He urged calm and said the Bank is in a strong position to prevent excessive volatility.

The Governor also stressed that the cedi’s movement is an endogenous variable. “Appreciation or depreciation is normal, but excessive volatility is what the Bank watches closely.”

The  Bank of Ghana has also maintained that despite all these developments,  the cedi has shown some strength and remains resilient.

المصدر: MyJoyOnline (GH)