Ghana Central Bank Chief Promises Stable Cedi for Christmas, but Shrinking Reserves Pose Latent Pressure

Bank of Ghana Governor Dr Johnson Asiama publicly pledged on November 2 that the Ghana cedi will remain stable through the upcoming Christmas season, seeking to ease market concerns that a surge in import demand during the holidays could trigger a depreciation of the local currency.

Speaking at the African Virtual Assets Summit (AVAS 2026), Asiama said: "What I can promise is a good Christmas as far as the exchange rate is concerned. We will have a good Christmas." His remarks came as the central bank's latest interbank reference rates, published the same day, showed the cedi trading at GH¢11.6142 for buying and GH¢11.6258 for selling against the US dollar. The pound sterling was quoted at GH¢15.5549 for buying, while the euro stood at GH¢12.9559 for buying.

Behind the governor's optimistic tone, however, Ghana's external buffers are under strain. Central bank data show gross international reserves fell to about US1.9 billion from US$12.94 billion in June, with import cover dropping from 5.7 months at the start of the year to 4.2 months. Part of the decline stems from the Ghana Gold Board (GoldBod) suspending gold exports from mid-August, weakening foreign exchange inflows.

Asiama has previously acknowledged that rebuilding reserves is a "key priority for the coming months." In September, he explained that part of the cedi's earlier depreciation was a "deliberate policy adjustment" intended to allow the economy to self-correct, stressing that the situation was "fully under control." The Christmas stability pledge is, in essence, a renewed endorsement of that management capability.

On the inflation front, Ghana's headline inflation rate picked up to 5.2% in September, with analysts expecting it to rise further to around 6.6% in October, driven mainly by higher transport fares and fuel prices. The central bank has held its policy rate steady at 14% since its September meeting. With inflation still relatively moderate but reserve buffers narrowing, the cedi's performance during the Christmas import season will test the central bank's actual grip on the market.