The Ghanaian cedi has experienced a significant appreciation against the US dollar in recent months.

According to Bloomberg, the cedi has appreciated nearly 16percent against the US dollar since the start of April 2025. This marks a remarkable turnaround from its previous status as one of the worst-performing currencies in Sub-Saharan Africa in 2024.

• Policy recommendations – To ensure that the recent appreciation of the cedi is sustained and not short-lived, the government should maintain prudent fiscal management and reduce the fiscal deficit through disciplined spending and enhanced domestic revenue mobilisation. A credible commitment to macroeconomic stability builds investor confidence and supports a stronger currency. The government should also encourage the retention and reinvestment of foreign profits to further support the cedi’s performance.

Conclusion

In conclusion, the appreciation of the Ghanaian cedi against the US dollar is a result of a combination of factors including increased gold and cocoa exports, policy interventions by the Bank of Ghana, temporary suspension of external debt servicing, and a weakening US dollar.

While this appreciation brings several benefits such as reduced imported inflation and improved external debt management, it also presents challenges such as reduced competitiveness of Ghanaian exports. Careful policy actions will be necessary to ensure the sustainability of this positive trend and to maximise its benefits for the Ghanaian economy.