As of yesterday, the Ghanaian cedi has appreciated to GH¢10.40 per US dollar on the interbank market, reflecting a 24.1% gain against the dollar in the first five months of 2025.
This appreciation is attributed to several factors:
●Tightened Monetary Policy: The Bank of Ghana’s decision to raise interest rates has attracted foreign investment, bolstering demand for the cedi.
●Improved Trade Balance: Increased export revenues from cocoa and gold have
enhanced Ghana’s foreign exchange reserves.
●Fiscal Discipline: Government efforts to reduce the fiscal deficit have improved investor confidence.
Bank of Ghana Governor Asiama emphasized that the cedi’s appreciation is market-driven, stating, “The Central Bank is not using international reserves to prop up the cedi.”
While the cedi’s strength benefits importers and helps curb inflation, economists caution that sustaining this trend requires continued fiscal prudence and economic reforms
