The Ghanaian cedi is showing signs of remarkable strength against the US dollar, sparking optimism about the country’s economic trajectory. Supported by robust central bank policies and improved interbank liquidity, analysts are predicting continued appreciation of the cedi in the near future. This positive outlook is further reinforced by comparisons to the previous year, where the cedi’s performance in 2025 reflects a significantly more stable economic environment.
Just four months ago, on November 9, 2024, one US dollar commanded a rate of GH¢16.5298. However, the current exchange rate stands at GH¢14.45840 per $1, showcasing a significant shift in the cedi’s value. This positive movement hasn’t gone unnoticed, attracting attention and commendation from international economic experts.
Among those acknowledging the cedi’s resurgence is Scott Bolshevik, a renowned US economist, historian, and financial analyst. Taking to X, Bolshevik expressed his appreciation for the progress made under President Mahama’s leadership.
In his post, he highlighted the substantial 11% gain in the cedi’s value within just four months, particularly noteworthy given Ghana’s reliance on imports. “From GHS16.5 to GHS14.7 per $ in just 4 months an 11% cedi gain under an import-dependent economy. That’s no small feat. Kudos to H.E. Mahama’s financial team,” he wrote.
Interestingly, even after Bolshevik’s commendation, which was based on an exchange rate of GHS14.7 to the dollar, the cedi has continued its upward trajectory. This consistent appreciation underscores the positive momentum building within the Ghanaian economy and the effectiveness of the current financial strategies.
The underlying factors contributing to this positive trend are multifaceted. Analysts point to the strong support provided by the central bank, likely through strategic interventions in the foreign exchange market to manage supply and demand.
Furthermore, improved interbank liquidity is playing a crucial role, facilitating smoother transactions and contributing to overall financial stability. This enhanced liquidity allows banks to more efficiently meet foreign exchange demands, reducing pressure on the cedi and supporting its appreciation.
The implications of a stronger cedi are significant for the Ghanaian economy. A stronger cedi makes imports cheaper, potentially lowering inflation and easing the burden on consumers. It can also lead to lower debt servicing costs for the government, freeing up resources for other crucial investments in infrastructure and social programmes. Moreover, a stable and appreciating currency can attract foreign investment, boosting economic growth and creating employment opportunities.
While the current performance is encouraging, sustaining this positive momentum will require continued vigilance and prudent economic management. President Mahama’s financial team will need to remain focused on maintaining fiscal discipline, attracting foreign investment, and diversifying the economy to reduce its reliance on imports.
The strengthening of the Ghanaian cedi represents a promising development for Ghana, offering a glimpse of a more stable and prosperous economic future.
The combination of strategic policy decisions, strong central bank support, and improved market dynamics has created a favourable environment for the cedi to flourish. While challenges remain, the current trajectory suggests that the Ghanaian cedi is poised for continued appreciation, bringing with it a wave of positive economic benefits for the country.
Anthony Obeng Afrane
