Bank of Ghana pledges to protect cedi amid IMF warnings

The Bank of Ghana (BoG) has reaffirmed its commitment to protecting the value of the cedi and maintaining low inflation to sustain the nation's economic recovery. Governor Dr. Johnson Asiama emphasized that while economic indicators show improvement, the central bank must remain vigilant against external risks, such as geopolitical tensions and fluctuating crude oil prices.

The International Monetary Fund (IMF) has advised the BoG to proceed cautiously regarding further policy rate reductions. The IMF noted that easing could shift the monetary stance from neutral to accommodative, which is currently unwarranted. The Fund highlighted risks including potential second-round effects from Middle East conflicts on energy and fertilizer prices, as well as exchange rate pass-through risks.

In the energy sector, the IMF urged Ghana to maintain quarterly electricity tariff adjustments to mitigate fiscal risks. While the sector shortfall decreased to $1.4 billion in 2025, the IMF stressed that sustained reforms are necessary to ensure long-term financial sustainability and to meet obligations to power producers.