The Bank of Ghana (BoG) says it has enough foreign currency reserves to step in and support the cedi if needed, as the central bank seeks to calm concerns over recent pressure on the local currency.

Governor Dr Johnson Asiama said Ghana's gross international reserves currently stand at US$12.9 billion, enough to cover about five months of imports.

For businesses, investors and households, this means the Bank of Ghana has a sizeable buffer of foreign currency that can help it respond when demand for dollars rises sharply or when external events put pressure on the cedi.

Dr Asiama gave the assurance during a stakeholder engagement programme at Eusbett Hotel in Sunyani.

He said the reserves provide protection against external shocks and give the central bank room to support stability in the foreign exchange market.

According to the Governor, the Bank of Ghana will continue to make decisions aimed at protecting the value of the cedi, keeping inflation low and maintaining financial stability while supporting economic growth.

"Our goal is simple: to create an economic environment where businesses can grow with confidence, households can plan for the future, and every Ghanaian can share in the benefits of a stable and growing economy," he said.

Cedi Recovers After Recent Pressure

Dr Asiama explained that the recent weakness of the cedi was largely linked to developments outside Ghana, particularly the conflict in the Middle East.

He said the situation has improved and the cedi has since recovered, but warned that risks remain.

The Governor noted that uncertainty in the global economy could still affect Ghana through areas such as oil prices and foreign exchange markets.

"We remain committed to maintaining an orderly and well functioning foreign exchange market," he said.

He added that although conditions have improved slightly in recent weeks, the central bank cannot afford to become complacent because events outside Ghana can quickly affect the domestic economy.

Policy Rate Remains at 14%

The Bank of Ghana's Monetary Policy Committee has also maintained the policy rate at 14%.

The policy rate is the benchmark interest rate used by the central bank to influence borrowing costs, inflation and economic activity.

Dr Asiama said the Bank decided to keep the rate unchanged because it needs more time to assess how developments in the Middle East, including rising oil prices, could affect Ghana.

"We took this decision because we believe it is the right balance. It will help keep inflation under control while supporting businesses, investment, and economic growth," he said.

He added that keeping the rate at 14% also gives the Bank of Ghana room to respond if conditions in the global economy change.

Economic Activity Remains Strong

Despite the uncertainty abroad, the Governor said Ghana's economy continues to show signs of strength.

He pointed to economic growth recorded during the first three months of the year, alongside stronger bank lending, increased trade, higher industrial production and a recovery in tourism.

Dr Asiama also said confidence among businesses and consumers is improving.

This is important because when businesses feel more confident about the economy, they are generally more willing to invest, borrow and expand operations.

Bank Lending Jumps More Than 41%

The Governor also said Ghana's banking sector remains strong.

Commercial banks are well capitalised, deposits continue to increase and the quality of loans held by banks has improved.

One of the biggest changes has been the growth in lending to the private sector.

Credit to businesses and households increased by more than 41% in June compared with about 9% during the same period a year earlier.

According to Dr Asiama, stronger lending means more businesses can access financing to expand their operations, create jobs and contribute to economic growth.

For investors, the combination of stronger credit growth, improving business confidence and a stable banking sector could support economic activity. However, movements in the cedi, inflation and global oil prices will remain important factors to watch in the months ahead.