Finance Minister Unveils Reforms to Stabilize Cedi, Curb Inflation
Finance Minister Dr. Cassiel Ato Forson has announced strategic reforms to stabilize inflation and strengthen the cedi, complementing the Bank of Ghana’s monetary and exchange rate policies. Presenting the 2025 Budget Statement in Parliament, Dr. Forson emphasized that these measures will reinforce economic stability and fiscal discipline.
A key initiative is the establishment of GoldBod, a gold-backed reserve system aimed at boosting forex reserves and supporting the cedi. Additionally, the Bank of Ghana will continue FX forward auctions to ensure liquidity and exchange rate stability. Fiscal consolidation efforts, including reduced public sector spending and deficit control, will further ease pressure on the exchange rate.
Dr. Forson highlighted the government’s 24-hour economy initiative, which promotes domestic production of key imported goods to reduce forex demand. “Our import substitution drive under the 24-hour economy will reduce imports and related FX requirements, improving forex stability,” he stated.
To curb inflation, the government will implement interventions under the Agriculture for Economic Transformation Agenda to boost food production and lower food prices. Policies targeting high-weighted Consumer Price Index (CPI) components—such as transportation and utilities—will help reduce household costs. Improved exchange rate stability is also expected to mitigate imported inflation and fuel price hikes.
With aggressive fiscal consolidation and the Bank of Ghana’s liquidity management interventions, the government anticipates further progress in disinflation. Dr. Forson reiterated that these measures underscore the government’s commitment to strengthening macroeconomic resilience and fostering sustainable growth.
