The Bank of Ghana has detailed the actions it is undertaking to ensure the stability of the Ghana cedi and to address exchange rate pressures in 2026.
The BoG stated that it is employing a multi-faceted strategy to uphold the stability of the Ghana cedi and to manage exchange rate pressures in 2026.
The initial measure involves Foreign exchange operations. The regulator indicated that it is supplying liquidity to the market through ongoing FX intermediation.
Another focus area is the Vostro account guidelines. It mentioned that it is “Streamlining cedi-related offshore transactions to enhance FX inflows into the interbank market.”
The third measure pertains to market monitoring and supervision. It asserted that it is ensuring compliance and the proper routing of remittances to bolster currency stability.
The fourth measure involves Monetary policy and liquidity management: It stated that it is adopting a cautious approach to strengthen overall FX market stability.
“These measures, along with the implementation of GANRAP, which has received parliamentary approval, are anticipated to work in concert to mitigate volatility, bolster investor confidence, and sustain orderly exchange rate conditions,” the BoG articulated in a statement.
The Bank of Ghana also declared that all banknotes and coins issued by the BoG, as the legal authority for currency issuance in Ghana, are recognized as legal tender and cannot be refused in the settlement of transactions.
The central bank emphasized that under the Currency Act, 1964 (Act 242), the refusal to accept such legal tender in routine transactions is prohibited.
The rejection of lower-denomination coins, such as the one pesewa, five pesewas, and twenty pesewas, may lead to the rounding up of prices and the establishment of higher minimum prices, which could jeopardize price stability.
Simultaneously, the BoG acknowledged that the practical use of very small denominations tends to diminish over time as inflation erodes their purchasing power, resulting in a gradual shift in demand towards higher denominations.
“While it is crucial to ensure the availability of coins within the system, the primary concern lies in public acceptance and adherence to legal tender regulations,” it stated in a release.
The Bank indicated that it will persist in enhancing public education and engaging stakeholders, especially traders, transport operators, and market associations, to strengthen the requirement to accept all forms of legal tender.
Furthermore, the Bank mentioned that it will collaborate closely with financial institutions to facilitate the effective distribution and recirculation of coins throughout the economy, while promoting pricing strategies that accommodate the use of suitable denominations in daily transactions.
“By implementing these strategies, the Bank seeks to uphold the efficient circulation of coins, avert unnecessary price rounding, and ensure transaction efficiency and price stability,” it stated.
