The governor of the Bank of Ghana, Dr Johnson Asiama, has revealed that the sharp appreciation of the Ghanaian cedi has led to a near 50% drop in remittance inflows, as many Ghanaians living abroad have paused sending money for local projects.
Speaking at the launch of the Bank of Ghana Chair in Finance and Economics at the University of Ghana, Dr Asiama explained that while the currency’s recent rally is a sign of economic stability, it has also altered the financial behaviour of the diaspora.
“With the appreciation of the cedi so far, Ghanaians are interpreting this differently, and it is part of the problem. People who used to send remittances for projects have suddenly stopped, and so we have observed a near 50% decline in remittance inflows,” he said.
The cedi has strengthened by more than 40% against the US dollar, 31% against the British pound, and 24% against the euro in recent months. This performance, according to the central bank, has been driven by improved macroeconomic stability, declining inflation, and robust external reserves.
Dr Asiama noted that some diaspora-based Ghanaians are holding back funds in expectation that building and project costs will fall in line with the stronger currency.
“By the way, if you are doing projects in Ghana, cement prices must also adjust, no? Inflation is coming down, so the prices of those building materials must also adjust, and so therefore, on the balance, it shouldn’t matter,” he remarked.
He disclosed that the central bank is considering targeted outreach in major remittance-originating countries to address misconceptions and encourage continued support.
“Someone told me this morning, we need to do a roadshow across the top remittance-originating countries… we need to go and explain to them to continue sending their monies regardless of where the exchange rate is,” Dr Asiama added.
The governor stressed that sustaining remittance flows is critical to maintaining foreign exchange liquidity, funding household expenses, and supporting local investment projects.
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