The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, says the cedi experienced significant demand pressures on the interbank market in May but has since shown signs of recovery.
Addressing the 131st Monetary Policy Committee (MPC) press conference in Accra on July 22, Dr Asiama disclosed that the cedi had cumulatively depreciated by 9.5 per cent against the US dollar as of July 17, 2026.
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He said the banking sector continued to record strong performance, supported by robust asset growth, improved solvency and better asset quality.
According to the Governor, average lending rates declined sharply to 15.6 per cent from 27.0 per cent, contributing to a significant increase in credit to the private sector.
He noted that private sector credit expanded by 41.2 per cent in June 2026, compared with 8.6 per cent during the same period in 2025, reflecting stronger demand for credit amid lower borrowing costs.
On fiscal performance, Dr Asiama said the government’s cash-based operations during the first quarter of 2026 reflected prudent expenditure management despite revenue shortfalls, resulting in fiscal balances that outperformed programme targets.
He also highlighted the strong performance of Ghana’s external sector during the first half of the year, driven by robust export earnings.
However, he noted that the country’s import bill increased significantly due to higher energy prices and related costs arising from the conflict in the Middle East.
Despite these external pressures, Dr Asiama said the cedi had begun to recover after experiencing heightened demand in the interbank foreign exchange market earlier in the year.
