Financial analyst, Toma Imihere has attributed recent improvements in Ghana’s exchange rate stability to a combination of the government’s gold trade programme, stronger fiscal discipline, and restored market confidence.
Speaking on the Point of View on Monday, September 8, 2025, Mr. Imihere said Ghana’s decision to leverage its gold reserves was a step in the right direction, noting that while the approach was not entirely new, it had provided tangible relief.
“To some extent, I feel that the gold has an effect on the exchange rate. It is not like they reinvented the wheel, but going for gold is the right thing to do,” he stated.
He further commended the current administration for maintaining fiscal discipline, stressing its positive impact on the cedi’s performance compared to previous years.
“Fiscal discipline does have a major effect on the exchange rate. This one, you must give it to this government because they are more disciplined fiscally than the previous government. So, that has had some effect on the exchange rate,” he said.
Mr. Imihere explained that beyond policy actions, confidence in the market plays a decisive role. According to him, when businesses and individuals trust that foreign exchange will be available when needed, they are less likely to hoard dollars, which helps reduce pressure on the cedi.
“When we criticised the Bank of Ghana for intervention, for a period, the interventions were useful but not sustainable. They helped to create confidence but not to push the exchange rate down. When there is confidence, people will not resort to hoarding the dollar,” he noted.
He concluded by saying that the present exchange rate figures reflect the market more accurately.
“The figure we have now for the exchange rate is more realistic,” he emphasised.
