As part of its larger economic recovery plan, the government has laid out a number of actions meant to combat inflation and stabilize the currency rate.
During the 2025 Business Statement and Economic Policy presentation in Parliament, Dr. Cassiel Ato Baah Forson, the Minister of Finance, introduced these policies.
Dr. Forson emphasized that in order to reduce inflationary pressures and maintain a stable cedi, the government will put policies into place to support the Bank of Ghana’s (BoG) monetary and exchange rate policies.
Actions to stabilize the currency rate
The government will:
- Create GoldBod, a plan to boost foreign exchange reserves by using Ghana’s gold resources to support the cedi in order to improve exchange rate stability.
- Maintain the BoG’s forward foreign exchange auctions to keep the currency market stable.
- To relieve exchange rate pressures, implement robust fiscal consolidation, which includes cutting back on public sector spending and the fiscal deficit.
- Under the 24-Hour Economy Policy, encourage import substitution by increasing domestic production of essential products that are now imported to reduce the demand for foreign exchange.
Techniques for lowering inflation
The government is also launching programs to combat inflation, such as:
- Putting the Agriculture for Economic Transformation Agenda into Practice to increase food production and reduce the inflation of food prices.
- Implementing focused strategies to lower the price of necessities like utilities and transportation, which have a big influence on inflation.
- To lower the fiscal deficit, fiscal consolidation initiatives should be strengthened. and borrowing by the government, which will lessen inflationary pressures.
- Maintaining exchange rate stability will assist keep the price of fuel and imported commodities under control.
- In order to maintain the disinflation process, I support the BoG’s monetary policy stance and liquidity management initiatives.
- Dr. Forson gave Parliament his word that these policies are intended to provide Ghanaians with long-term relief by lowering living expenses, fostering economic stability, and guaranteeing sustainable growth.
visit itrotronews everyday for updates