The government has announced a comprehensive strategy to address inflation and exchange rate pressures, aiming to restore economic stability and provide relief to businesses and households.
During the 2025 Budget Statement and Economic Policy presentation, Finance Minister Dr. Cassiel Ato Forson outlined key measures to support the Bank of Ghana’s monetary and exchange rate policies.
Strengthening the Cedi and Ensuring FX Stability:
- Ghana Gold Board (GoldBod): Establishing this new institution to boost gold reserves and enhance foreign exchange generation.
- FX Forward Auctions: Continued use of foreign exchange forward auctions by the Bank of Ghana to reduce currency volatility.
- Fiscal Consolidation: Reducing public sector spending and lowering the fiscal deficit to ease pressure on the exchange rate.
- Import Substitution: Promoting domestic production under the 24-Hour Economy Policy to decrease reliance on imports and reduce foreign currency demand.
Addressing Rising Inflation:
- Boosting Food Production: Increasing food supply through the Agriculture for Economic Transformation Agenda (AETA) to lower food inflation.
- Targeted Interventions: Focusing on reducing costs for transportation, utilities, and essential goods, which significantly impact the Consumer Price Index (CPI).
- Tighter Fiscal Discipline: Cutting government borrowing and lowering the fiscal deficit to control inflationary pressures.
- Exchange Rate Stability: Stabilizing the cedi to reduce the cost of imported goods and fuel, further curbing inflation.
- Monetary Policy Adjustments: Maintaining a firm monetary stance by the Bank of Ghana, utilizing liquidity management tools to support inflation reduction.
Dr. Forson emphasized the government’s dedication to economic stability, stating that these measures will provide relief to businesses and households while restoring investor confidence in Ghana’s economy.
