World Bank warns against BoG’s ‘excessive’ intervention in foreign exchange market

The cedi appreciated by 42% as of June 2025

The World Bank has warned against the Bank of Ghana’s interventions in the foreign exchange market, following the steady appreciation of the local currency.

According to its 9th Ghana Economic Update, the bank lauded the government’s measures in boosting economic recovery in the first six months of 2025, especially the appreciation of the cedi against all trading currencies.

BoG celebrated as gold-standard for central management of commodities

The Ghana cedi appreciated against all major currencies in the year by June 2025.

“This appreciation was supported by a tighter monetary policy stance, ongoing fiscal consolidation, record reserve accumulation, improved market sentiment, and interventions by the Bank of Ghana (BoG) in the foreign exchange (FX) market to manage liquidity,” the World Bank said.

It further noted that; “However, FX interventions by the BoG should be managed carefully to avoid distortions in the currency market and allow for a more flexible exchange rate regime.”

Meanwhile, the local currency has remained quite stable in recent times, hovering between GH¢10 and GH¢11 on the interbank bank market.

Government imposes GH¢10,000 daily fine on DSTV over failure to submit pricing data

On inflation, the bank said disinflation resumed in 2025 on the back of tighter monetary policy, improved macroeconomic conditions, and a stronger currency.

Following the flattening disinflation in 2024, headline inflation has seen a significant decline in 2025, reaching 13.7% in June 2025.

“This marked the sixth consecutive decline since December 2024, reflecting a broad-based reduction in core, food, and non-food inflation. The decline was influenced by a tighter monetary policy rate of 28%, improved macroeconomic conditions, and a significant rebound of the currency,” it added.

Meanwhile, watch as Isaac Adongo narrates how Dr Murtala, Dr Omane Boamah changed his life:

SSD/AE

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}