Accra: The Ghanaian Cedi (GHS) has appreciated significantly against the US Dollar (USD), reaching GHS 13.47 per USD as of May 6, 2025. This marks a 7.44% gain year-to-date, following a substantial depreciation of 45.1% in 2022.
According to Ghana News Agency, a report by the Ghana International Trade and Finance Conference (GITFiC) has identified several drivers behind this appreciation. The study highlights key factors such as monetary interventions by the Bank of Ghana (BoG), the implementation of the Goldbod initiative, support from the International Monetary Fund (IMF), fiscal discipline, and the US dollar’s depreciation due to ongoing tariff wars. These elements have collectively contributed to the strengthening of the Cedi.
The BoG’s injection of $490 million into the forex market in April 2025, alongside tight liquidity measures, played a crucial role in bolstering the Cedi’s value. The Goldbod programme, which purchases a portion of Ghana’s gold output in Cedis, also aided in boosting foreign exchange reserves, enhancing investor confidence. Additionally, the IMF’s $3 billion Extended Credit Facility and enforced fiscal reforms resulted in increased reserves and reduced inflation, further supporting the Cedi’s appreciation.
Despite these short-term gains, the GITFiC report cautions that long-term stability of the Cedi requires addressing Ghana’s reliance on imports and the volatility of commodity prices. The report recommends export diversification, enhanced monetary strategies, and sustained fiscal reforms to ensure the Cedi’s resilience.
The study emphasizes the importance of understanding the drivers behind the Cedi’s strength and presents policy recommendations to maintain currency stability. It warns of the risks associated with Ghana’s import dependence and external economic shocks, suggesting that policymakers should focus on diversifying exports and maintaining fiscal discipline.
The Ghanaian Cedi’s recent performance, as illustrated by the exchange rate trend from January to May 2025, reflects a steady appreciation, with significant gains observed in April following the BoG interventions. However, the report notes the need for consistent policies to manage the inherent volatility in the forex market.
In conclusion, while the Cedi’s appreciation provides a positive outlook for Ghana’s economy, the GITFiC report stresses the necessity for continued reforms and transparent communication by authorities to sustain this momentum and support the country’s economic recovery.