President John Dramani Mahama has expressed confidence that the cedi will remain broadly stable in the months ahead, with any depreciation capped at about 5% annually.

He downplayed fears of renewed volatility, describing recent fluctuations as part of a natural market adjustment rather than a return to instability.

Speaking at a media engagement on Wednesday, the President recalled that the Bank of Ghana (BoG) had been forced to intervene heavily in the first half of 2024, when the local currency lost nearly 25% of its value. He explained that the central bank has since scaled back those interventions as the cedi shows signs of self-correction.

"I believe that it is about stopping rapid depreciation of the currency. When you have steep depreciation of about like we had in 2024, 25% depreciation in the currency in the first half of the year, it makes planning difficult. And so yes, Bank of Ghana BoG has been intervening in the forex market but they've withdrawn," he said.

Reassuring businesses and investors, the President emphasised that fiscal discipline, prudent expenditure management and stronger macroeconomic fundamentals will anchor stability in the currency market.

"The Cedi is making an adjustment and I believe that it will settle at a certain rate and we'll make sure that any depreciation that occurs in the value of the Cedi is within a margin of about 5% per annum," President Mahama added.

The cedi had staged a sharp rebound against major currencies earlier this year, but its momentum has slowed in recent weeks, sparking concerns of a reversal. The government insists, however, that current policies will ensure stability and predictability for trade and investment.