The Bank of Ghana (BoG) has urged the public, market participants, and the media to exercise caution in interpreting policy actions taken by the Central Bank, warning that misunderstanding policy actions—especially in a fragile recovery—can undermine confidence and distort economic behaviour.
Sounding the caution, Dr. Zakari Mumuni, First Deputy Governor of BoG, said recent policy decisions must be understood within the difficult economic environment in which they were taken, stressing that central banking during periods of stress goes far beyond routine technical adjustments.
“To understand the Bank’s recent actions, we must recall the environment in which they were taken,” he said, pointing to an economy emerging from profound stress, entrenched inflation, weakened confidence, and distorted market signals.
An economy under strain
According to Dr. Mumuni, the period preceding the Bank’s recent interventions was characterised by widespread uncertainty. Inflation had become deeply embedded, prices felt unpredictable to households, and businesses found it increasingly difficult to plan.
In such conditions, expectations—the invisible force that shapes economic decision-making—became fragile.
Consumers delayed spending, businesses postponed investment, and markets reacted sharply to rumours and speculation.
“It was not just an economic challenge,” he explained. “It was a crisis of confidence.”
Central banking as an exercise in trust-building
Against this backdrop, Dr. Mumuni said the role of the central bank shifted from routine policy calibration to something far more fundamental: rebuilding trust.
That trust, he noted, cannot be restored overnight. It requires consistency, discipline, and communication that is honest, even when the message is uncomfortable.
Throughout the period, the Bank of Ghana remained anchored to its core mandate—price stability, financial stability, and orderly markets.
“These are not abstract goals,” he stressed. “They determine whether wages hold value, whether savings are protected, and whether businesses can plan with confidence.”
The unique role of central banks
Dr. Mumuni reminded the public that central banks occupy a unique place in national life.
They are public institutions acting on behalf of citizens, yet they must operate independently and be insulated from short-term political pressures.
The Bank of Ghana regulates banks, manages the national currency, provides banking services to government, and serves as custodian of financial stability.
Because of this broad responsibility, the way its actions are interpreted and reported carries enormous weight.
“Sensationalism can amplify anxiety. Incomplete context can distort understanding,” he warned.
At the same time, responsible reporting, he said, has the power to stabilise expectations and strengthen confidence.
Not about silencing criticism
Dr. Mumuni was emphatic that the Bank is not seeking to suppress criticism or scrutiny.
“This is not about silencing criticism,” he said. “It is about recognising that in macroeconomics, perception often precedes reality.”
When perceptions deteriorate, behaviour changes—sometimes in ways that worsen the very problems policymakers are trying to solve.
Panic buying of foreign currency, rushed price increases, and speculative behaviour can occur even when fundamentals are improving.
Why currency stability matters to ordinary Ghanaians
The First Deputy Governor stressed that currency stability should not be viewed as an abstract macroeconomic concept reserved for economists and analysts.
“When the cedi stabilises, import prices ease. Transport costs moderate. School fees, rent, medicines, and food become more predictable,” he explained.
For businesses, currency stability allows products to be priced with confidence.
For investors, it supports planning. For workers and households, it creates the assurance that earnings and savings will not lose value overnight.
Cedi strengthens on the back of discipline
In 2025, Dr. Mumuni noted, the cedi ended the year significantly stronger, reflecting improved economic fundamentals, disciplined policy execution, and growing confidence in Ghana’s macroeconomic framework.
Importantly, he described this outcome not as a victory for the central bank alone, but as a shared national gain.
“Just as instability hurts everyone, stability benefits everyone,” he said.
A collective responsibility to protect the Cedi
Dr. Mumuni emphasised that safeguarding currency stability is not the sole responsibility of the Bank of Ghana.
“It is a collective responsibility—of policymakers, businesses, households, and yes, the media,” he said.
He cited the Cedi@60 campaign as a powerful example of how responsible communication and national ownership can reinforce policy outcomes.
Media coverage during the campaign, he said, helped translate policy objectives into public action by promoting responsible currency handling and strengthening confidence in the cedi.
Context matters in reporting central bank losses
The First Deputy Governor also addressed public discourse around central bank losses, urging greater context and nuance.
Central banks around the world, he explained, can incur losses while taking decisive actions to stabilise their economies during crises. Such outcomes reflect policy choices made in the public interest—not financial recklessness.
“When this distinction is not clearly explained, public trust can be eroded,” he cautioned.
Yet trust, he stressed, is the very foundation upon which monetary policy rests.
The results that matter most
Dr. Mumuni urged the public to focus on the broader thrust of policy rather than isolated figures or headlines.
Inflation fell sharply. Foreign exchange reserves were rebuilt. The cedi strengthened.
“These are the results that ultimately matter to citizens,” he said.
As Ghana consolidates its recovery, the Bank of Ghana’s message is clear: understanding, context, and responsible interpretation of policy decisions are not optional extras—they are essential to sustaining stability and protecting the gains achieved through difficult and sometimes painful choices.
