The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has sounded a warning about the potential depreciation of the cedi despite the downward trend in Treasury bill (T-bill) rates.
Speaking at the 2025 National Economic Dialogue in Accra on Tuesday, March 4, Dr. Asiama emphasized the need for vigilance in managing the economy to prevent any adverse effects on the cedi.
According to Asiama, the falling T-bill rates are a positive development for the economy, but they also pose a risk to the cedi if not properly managed.
“Currently, T-bill rates are coming down, and it is good to see that. However, there is an emerging risk that if we are not careful, we will see pressure on the cedi going up as a result,” he stated.
To mitigate this risk, the BoG has adjusted rates on its own bills to maintain macroeconomic stability.
He explained that this is necessary to achieve a balance between the benefits of falling T-bill rates and the potential risks to the cedi.
“If you look at our Bank of Ghana bills, you would see that the rates have had to go up – that’s the way managing the macroeconomic works, and therefore, there has to be a balance,” he added.
The BoG Governor also emphasized the importance of close coordination with fiscal authorities to ensure a well-managed approach to the economy.
He revealed that he will maintain regular communication with the Minister of Finance to achieve this balance.
“I will be speaking with the Minister of Finance regularly, and we will try to achieve that balance going forward. We will be transparent,” he assured.
Dr. Asiama’s warning comes against the backdrop of a depreciating cedi, which has been a major concern for the economy.
According to recent data, the cedi has depreciated by 22.7% against the US dollar, 22.4% against the British pound, and 19.1% against the euro.
The BoG has been working to stabilize the currency, and Dr. Asiama’s warning suggests that the bank is taking a cautious approach to managing the economy.
In addition to the potential risks to the cedi, Dr. Asiama also highlighted the challenges facing the banking sector, including high levels of non-performing loans (NPLs).
He emphasized the need for financial sector reforms and noted that a financial sector strengthening strategy is being implemented under the Fund Programme.
–BY Daniel Bampoe
