World Bank Warns Against Bank of Ghana's Excessive Intervention in Foreign Exchange Market
The World Bank’s report also highlighted Ghana’s broader economic recovery.
World Bank Warns Against Bank of Ghana's Excessive Intervention in Foreign Exchange Market
The World Bank has issued a cautionary note to the Bank of Ghana (BoG) regarding its substantial interventions in the foreign exchange (FX) market, highlighting potential risks despite the Ghanaian cedi's remarkable performance in 2025. According to the World Bank’s 9th Ghana Economic Update, released on August 14, 2025, in Accra, while the BoG’s actions have contributed to the cedi’s 42% appreciation against major currencies by June 2025, excessive interventions could distort market dynamics and undermine long-term economic stability. Background: Cedi’s Strong Performance in 2025 The Ghanaian cedi has emerged as one of the world’s best-performing currencies in 2025, appreciating by 42.6% in the first half of the year, a sharp reversal from its 19.2% depreciation in 2024. This appreciation has been driven by a combination of tighter monetary policy, fiscal consolidation, record reserve accumulation, and improved market sentiment. The BoG’s interventions, including a reported $1.4 bi…
